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Which one of the following was not an underlying principle from the Royal Commission into Misconduct in the Banking, Superannuation, and Financial Services Industry?

a) Maximize shareholder profits
b) Prioritize customer interests
c) Uphold ethical standards
d) Implement a code of conduct

1 Answer

1 vote

Final answer:

The underlying principle not aligned with the Royal Commission into Misconduct in the Banking, Superannuation, and Financial Services Industry is to a) 'Maximize shareholder profits,' as the Commission focused on protecting all stakeholders, not just shareholders.

Step-by-step explanation:

The underlying principle that was not an aspect of the Royal Commission into Misconduct in the Banking, Superannuation, and Financial Services Industry is a) Maximize shareholder profits. This principle suggests that a firm's managers should act solely in the interests of shareholders, which is in line with shareholder primacy. However, the Commission's investigations were more aligned with stakeholder theory, which emphasizes balancing the interests of all stakeholders, not just shareholders. Principles b) Prioritize customer interests, c) Uphold ethical standards, and d) Implement a code of conduct were indeed part of the foundational aspects of the Commission's inquiry into the financial services sector.

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