Ethical Issues Maybank

Title: Ethical Issues in Maybank: A Case Study on Wage Problems, Discrimination, and Other
Concerns in Malaysia.
Ethical issues within companies play a crucial role in shaping their reputation and impact on
employees, stakeholders, and society. Maybank, Malaysia's largest banking group, is not
exempt from ethical challenges that commonly arise in the corporate world. This essay will
explore some of the key ethical issues faced by Maybank, including wage problems and
discrimination. Furthermore, a comprehensive SWOT analysis will be conducted to identify
the strengths, weaknesses, opportunities, and threats associated with these ethical issues.
Finally, this essay will propose potential solutions to help Maybank overcome these
problems.
Maybank Background:
Maybank, also known as Malayan Banking Berhad, is a leading banking group in Malaysia
with a rich history dating back to 1960. As one of the largest financial institutions in
Southeast Asia, Maybank provides a wide range of banking and financial services to
individual, commercial, and corporate customers. It operates an extensive network of
branches and subsidiaries both within Malaysia and internationally.
Wage Problems:
One of the significant ethical issues faced by Maybank revolves around wage problems.
Reports and employee testimonials have highlighted concerns about low wages, wage
disparities, and inadequate compensation within the organization. While Maybank is known
for its financial success and profitability, some employees, particularly those in lower-level
positions, receive wages that are below industry standards. Insufficient wages can lead to
financial hardships for employees, impacting their quality of life and hindering their ability to
meet basic needs. Wage problems within Maybank may perpetuate income inequality and
potentially contribute to employee dissatisfaction, reduced motivation, and high turnover
rates.
Discrimination:
Discrimination is another ethical issue prevalent within Maybank. Instances of discrimination

based on gender, age, and ethnicity have been reported. Female employees may face
gender-based pay disparities and limited opportunities for career advancement within the
organization. Additionally, older employees may encounter age-related discrimination, such
as being overlooked for promotions or facing bias in training and development opportunities.
Furthermore, discriminatory practices based on ethnicity or nationality can manifest in
biased recruitment and promotion processes, unequal treatment, and limited access to
certain positions. Such discrimination erodes employee morale, undermines diversity and
inclusion efforts, and violates principles of equality and fairness. In addition to wage
problems and discrimination, Maybank may face other ethical concerns. These include
concerns related to customer data privacy, responsible lending practices, and transparency
in financial transactions. The banking industry is highly regulated, and any lapses in ethical
conduct in these areas can lead to reputational damage and legal implications.
Consequences and Implications:
The ethical issues faced by Maybank have several consequences and implications. Firstly,
wage problems and discrimination can result in employee dissatisfaction, low morale, and
increased turnover rates. This can negatively impact customer service quality, team
dynamics, and overall organizational performance. Secondly, Maybank's reputation may
suffer, leading to a loss of trust from customers, shareholders, and the wider community.
Negative publicity surrounding wage problems, discrimination, or breaches in privacy and
transparency can damage the bank's brand image and its standing in the market. Moreover,
non-compliance with legal and regulatory requirements in relation to responsible lending and
customer data privacy can lead to financial penalties, legal action, and potential erosion of
customer trust.
SWOT Analysis:
Strengths:
1) Strong brand recognition and market presence.

2) Extensive network of branches and ATMs.
3) Robust financial performance and solid customer base.
Weaknesses:
1) Wage disparity undermines employee motivation and satisfaction.

2) Discrimination adversely affects workplace harmony and employee morale.
3) Negative publicity can damage the company's reputation.
Opportunities:
1) Promote diversity and inclusion initiatives to improve the company's reputation.

2) Implement fair and transparent wage policies to attract and retain top talent.
3) Strengthen corporate social responsibility programs to demonstrate commitment to
ethical practices.
Threats:
1) Potential legal ramifications due to discrimination claims.

2) Damage to the company's brand and reputation, leading to a loss of customer trust.
3) Employee turnover and difficulty attracting skilled workers due to wage disparities.
Solutions:
1) Fair Wage Policies:
Maybank should conduct a comprehensive review of its compensation structure to ensure

pay equity across all job levels and departments. Implementing a transparent and fair wage
policy will help address wage problems and create a more motivated and loyal workforce.
2) Diversity and Inclusion Initiatives:
Maybank should establish diversity and inclusion programs that promote equal opportunities
for all employees, regardless of their backgrounds. This can include setting diversity targets,
providing training on bias awareness, and creating an inclusive work environment.
3) Regular Training and Awareness Programs:
Maybank should conduct regular training sessions and awareness programs to educate
employees on ethics, equal treatment, and the importance of upholding these values. By
raising awareness and fostering a culture of ethical behavior, the company can reduce the
likelihood of discriminatory practices.
4) External Audits and Accountability:
To ensure compliance and continuous improvement, Maybank should engage external

auditors or consultants to conduct regular audits of its HR practices, including wage
structures and discrimination policies. This external oversight will provide an objective
evaluation and recommendations for improvement.
Conclusion:
Addressing ethical issues is crucial for Maybank to maintain its position as a leading banking
group in Malaysia. Maybank can overcome these challenges by implementing fair wage
policies, promoting diversity and inclusion, conducting regular training, enhancing external
accountability, and building a more ethical and sustainable organization. By doing so, the
company will safeguard its reputation, foster a positive work environment, and contribute to
a fairer society.
References:
About Us, Maybank. Retrieved from https://www.maybank.com/en/about-us.page
Maybank Annual Report 2022. Retrieved from https://www.maybank.com/en/investor-

relations/financial-overview/annual-reports.page
Ibrahim, M., Abdullah, N. A., & Hamid, M. R. A. (2018). Ethical climate and employee
turnover intention: The mediating role of job satisfaction. Procedia - Social and Behavioral
Sciences, 224, 498-506.

Ethical Issues Maybank

Uploaded by

Copyright:

Available Formats

Ethical Issues Maybank

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Ethical Issues Maybank

Uploaded by

Copyright:

Available Formats

Title: Ethical Issues in Maybank: A Case Study on Wage Problems, Discrimination, and Other

Discrimination is another ethical issue prevalent within Maybank. Instances of discrimination

Consequences and Implications:

1) Strong brand recognition and market presence.

1) Wage disparity undermines employee motivation and satisfaction.

1) Promote diversity and inclusion initiatives to improve the company's reputation.

1) Potential legal ramifications due to discrimination claims.

1) Fair Wage Policies:

Maybank should conduct a comprehensive review of its compensation structure to ensure

2) Diversity and Inclusion Initiatives:

3) Regular Training and Awareness Programs:

4) External Audits and Accountability:

To ensure compliance and continuous improvement, Maybank should engage external

About Us, Maybank. Retrieved from https://www.maybank.com/en/about-us.page

Maybank Annual Report 2022. Retrieved from https://www.maybank.com/en/investor-

You might also like