In the article, a move launched by Alliance for gambling reform, Macquarie group announced that their credit cards can no longer be used in gambling transactions. It will block all cards that are registered under gambling and lottery merchant. This step is taken to support the financial well being of customers and avoiding bad debts. This sets a new bench mark for social responsibility in banking sector. With that the bank has announced that it will scrap its transaction fess done internationally so that customers can use their cards more effectively.
Stakeholder theory depicts that a company should create value for all stakeholders. It is a view that stresses the interconnected relationship between business and its customers. This theory states that a company needs to be mindful not only for those who hold stock but also for those without which their business won’t survive (Kannan, 2018). If banks do not makes plans and policies considering the benefit of their customers, they will not be able to sustain properly but with they also needs to take care of their business for the shareholders and bring certain amount of profit to them. To some extent stakeholder theory also considers CSR. When taking or making a certain policy social welfare should be considered in stakeholder’s theory. Certain values and morals are needed to be followed by the companies running as they create the work environment and with them taking certain steps which benefit the society as well brings in more good (Mi, Chang, Lin & Chang,2018).
Thus stakeholder’s theory comprises of all the elements. It includes benefit of all related to the business and with that certain amount of social responsibility is also there, as business runs in the society which means society is also a stakeholder, which means it is required to be involved while formulating the theory ( Decker, 2018).
In the article Macquarie group has decided to scrap all credit card transaction which were happening in gambling and lottery arcade. Here they have taken a step to reduce the bad debts and maintain a financial well being of its customers. They have also decided to cap cash advances balances. This is all will reduce the burden that is being laid on the customers who are addicted to gambling and go ahead with it even when they are in debt. This step will reduce the ability of their customers to play even when they are in high debt. Once reduced it will help them improve their financial condition. Here customers are the stakeholders in the company and this step will bring them gain which shows that stakeholder theory is apt in here.
Also with that there will be reduction in credit card debt of the company. Certain bad debts will be reduced after this, as when credit won’t be long there will be a lesser chance of debts to the company/. This will bring in benefits to the company and also to its shareholders as it will increase its profit and improve the condition of the company. Here one more stakeholder theory’s concept is fit it.
Since they are taking a step for gambling and lottery dimensions, they are also doing a societal favor. This shows the CSR of the company where they are letting go of their service just to give back to the society. Gambling and lottery does not take the society towards their betterment. People who are gamblers lose money and go down in debt due to which their family life and other societal norms etc. everything is affected. Also gambling and lottery is not considered a proper thread in the society and scrapping the facilities provided to gamblers will curb it to an extent. Hence, societal benefits will be there.
And last is removing the international transaction fee. This also is in the benefit of their stakeholders. Customers keep travelling and to pay unnecessary fee is a burden. Removing that will improve their goodwill and also benefit the customers.
Thus, here stakeholder’s theory is apt as the criteria mentioned are all being satisfied with the article.
Decker, C. (2018). Stakeholders' impact on turnaround performance: The case of German savings banks. Journal of Small Business Management, 56(4), 534-554.
Kannan, D. (2018). Role of multiple stakeholders and the critical success factor theory for the sustainable supplier selection process. International Journal of Production Economics, 195, 391-418.
Mi, C., Chang, F., Lin, C., & Chang, Y. (2018). The theory of reasoned action to csr behavioral intentions: The role of csr expected benefit, csr expected effort and stakeholders. Sustainability, 10(12), 4462.
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