You are a banker working for Commonwealth Bank of Australia (CBA). Your neighbour is retired and has invested some of his superannuation in a share portfolio that includes CBA shares. Although he is not unhappy about the bank’s share performance he believes CBA can do better by its shareholders. In particular he is not sure about the values of socially responsible projects CBA undertakes. As you are to present a brief on an issue of your own choice on the next monthly staff meeting you decide to write the brief on the following topic:
‘Is maximising the value of the firm to its shareholders consistent with the firm exercising considerable social responsibility?’
Incorporate various social obligations undertaken by CBA and specify how CBA maximises shareholder's value to illustrate your argument. (Maximum 1000 words)