Is restoration of trust possible? A critical analysis on the role of Financial Services Royal Commission on vulnerable stakeholders
The purpose of this study is to critically analyze the effectiveness of FSRC in the issue of trust restoration in the Australian financial industry from the perspectives of its vulnerable stakeholders. It focuses on the trust in the financial services industry of Australia which is challenged. The profit-making and shareholder’s wealth maximization tendencies of the whole industry have led to misconducts at the cost of its vulnerable stakeholders and resulted in unprecedented public distrust (Brailey, 2017, p. 12). In this scenario, the emergence of the Financial Services Royal Commission (FSRC) has been an important breakthrough in bringing those who abused trust into account. While the recommendations proposed by the Commission reflect its emphasis to advance the interests of the community, those have attracted frustrations or controversies are marked in case of addressing issues related to vulnerable category of stakeholders. The paper extends our understandings and contributes to the debate regarding restoring trust of who are ignored, and hence whose trust required to be restored institutionally.
Keywords: Trust, financial services, Royal Commission