Background: On the 13th of May 2021, the Federal Court ordered Telstra to pay a penalty of $50 million plus costs for engaging in ‘unconscionable’ conduct towards more than 100 Indigenous customers in...


Background:


On the 13th of May 2021, the Federal Court ordered Telstra to pay a penalty of $50 million plus costs for engaging in ‘unconscionable’ conduct towards more than 100 Indigenous customers in rural and remote communities across three states and territories. Last year, Telstra admitted to breaching Australian Consumer Law between 2016 and 2018, following an Australian Competition & Consumer Commission (ACCC) investigation into its sales practices. ACCC Chair Rod Sim explained1: “Sales staff in these Telstra-branded stores used unconscionable practices to sell products to dozens of Indigenous customers, who in many cases, spoke English as a second or third language. This conduct included manipulating credit assessments and misrepresenting product fees as free, and exploiting the social, language, literacy and cultural vulnerabilities of the Indigenous customers. Telstra’s board and senior executives failed to act quickly enough to stop these illegal practices when they were alerted to them”.

Specific Requirements


Assume you are a business consultant, reporting to the Board of Directors of Telstra. You have been contracted to provide a report to Telstra’s Board of Directors which:

  1. 1) Evaluates Telstra sales staff behaviour and its consequences on the company’s performance over the period 2016 to 2021 and on shareholders using arguments from an agency theory approach. In your response, ensure you explicitly define, explain, and apply agency theory (suggested words 600).

  2. 2) Discusses the likely short-term and long-term consequences of Telstra’ behaviour to Telstra and other organisations using arguments from a legitimacy theory approach. In your response, ensure you explicitly define, explain, and apply legitimacy theory. (Suggested words 600)


3) Using arguments from a stakeholder theory approach:

  1. a) Identifies key stakeholder groups (other than shareholders and the affected customers) impacted by the sales staff behaviour and justifies their selection.

  2. b) identifies and discusses Telstra’s behaviour in relation to each stakeholder group you have identified in point a) above. In your response, ensure you explicitly define, explain, and apply stakeholder theory (Suggested words 600).


To address the requirements of this task, you are expected to refer to the Telstra annual reports and sustainability reports, relevant media resources, peer reviewed journal and other sources you find through your research.

Other Requirements


  • Include headings and sub-headings.

  • An executive summary is required, in addition to the introduction.

  • Your submission must comply with the Harvard referencing style.

  • Your report is addressed to the Board of Directors, therefore, it must be written in a professional tone.

May 26, 2022
SOLUTION.PDF

Get Answer To This Question

Related Questions & Answers

More Questions »

Submit New Assignment

Copy and Paste Your Assignment Here