Answer To: ASSESSMENT BRIEF___________________________________________________ Subject Title Subject...
Arunavo answered on Mar 15 2021
Running Head: BUSINESS ETHICS
BUSINESS ETHICS
ETHICAL CONSIDERATION OF AFTERPAY
Executive Summary
Ethical practice is considered as the backbone for the company, because that will ensure that company operates on the right track for the sustainable growth. There are certain activities by companies which creates a sense of perception that they are engaged in unfair practice, however, it is later observed that the nature of activities feels like that the companies are engaged in irregularities. In this article the discussion is done on the activities done by Afterpay and the ethical activities followed by them.
Table of Contents
Executive Summary 2
Introduction 4
Overview of the Company 4
Ethical Practice by Financial Institutions (Afterpay) 5
Business Practice and Code of Conduct of Afterpay 6
Recommendations 6
Conclusion 7
References 8
Introduction
Ethics is one of the most important factors, which every company must follow in order to ensure sustainable growth for the organization. Business ethics ensures integrity among their employees and gain trust from the stakeholders and customers, which is an important aspect of the success of the business. In this article a detailed discussion is done on the Afterpay Limited, which is an Australian financial technology provides the opportunity to buy now and pay later system to the shoppers. It has collaboration with both online and offline models, and the payment is done in four equal repayments. The ethical analysis of the business model is done along with the sustainability in the Australian market, and also the code of business ethics directed by the Australian Government.
Overview of the Company
Afterpay started their operation in the year 2015, with the business establishments in Australia, New Zealand, Canada, United States and United Kingdom. The company has a total revenue of AUD 251.6 million by June 2019, with around 7.3 million users, which can prove the acceptability of this concept (Afterpay, 2021). The founders of the company have started this concept in order to empower the customers with the access to the things they want and they need, which helps them to maintain their financial wellness and control by splitting their payments over an item. However, in the news published at ABC news (January 29, 2020) regarding the use of Afterpay service is that many users or customers will get attracted to buy unnecessarily out of impulse even without having no money at the moment and uncertainty of having it in future. The business operating under this kind of scheme needs to comply with the Australian Ethical Charter, which states that any investment must be avoided that is considered unnecessary to attract people into any kind of financial over commitment. Hedges et al. (2017), have added that ASIC has discovered that the there is a potential risk over certain arrangements, that can increase the amount of debt held by the customers and that contribute towards the financial over commitment. This situation can cause consumers to miss their repayments, they may suffer financial stress and they could experience difficulties in purchasing essential goods and commodities. It has been observed that one in six in the Afterpay service, which is more than 300,000 people had experienced the negative impacts of wither one of them, such as overdrawn bank account, delayed in payment of bills, or they are being forced to borrow some additional amount of money from different sources, which...