Name : Listri Herlina

NIM: 29116237

Business Ethics, Law, and

Sustainability

MM5001/ EMBA55B

Lecture: Andika Putra Pratama

Company profile

Sumitomo Mitsui Banking Corporation

Sumitomo Mitsui Banking Corporation (SMBC) and its group companies offer a broad range
of financial services centered on banking. They are also engaged in the leasing, securities,
credit card, investment, mortgage securitization, venture capital and other credit related
businesses. The following lists the activities of SMBC, its subsidiaries and affiliates in the
various business segments.The headquarters and branches, including overseas branches, of
SMBC engage in deposit taking, lending, securities brokering and trading, securities
investment, money transfer, foreign currency exchange, corporate bond trustee services and
custody services, financial futures underwriting, investment trust sales and other commercial
banking activities.

Subsidiaries and Affiliates

Domestic

Kansai Urban Banking Corporation, The Minato Bank, Limited, and The Japan Net Bank,
Ltd., engage in deposit taking, lending and other commercial banking services in Japan.
Japan Net Bank operates exclusively as an Internet bank. SMBC Guarantee Co., Ltd., handles
credit guarantees for housing loans in Japan extended by SMBC.

Overseas

Sumitomo Mitsui Banking Corporation Europe Limited, Sumitomo Mitsui Banking

Corporation (China) Limited, Banco Sumitomo Mitsui Brasileiro S.A., Manufacturers Bank,
Sumitomo Mitsui Banking Corporation of Canada, ZAO Sumitomo Mitsui Rus Bank, and PT
Bank Sumitomo Mitsui Indonesia are engaged in deposit taking, lending and other
commercial banking services in their respective regions.(source: smbc.co.jp)

PT Bank Sumitomo Mitsui Indonesia:

The shareholder of PT BSMI :

Source: smbc.co.id

With 99% ownership of SMBC Japan,, all business process and work must be equal to the
standard of parent company that is Sumitomo Mitsui banking corp Japan unless all that has
been determined by banking regulator in Indonesia.
 Locus of Analysis
Criteria
Individual Local Cosmopolitan

Egoism 13,6 21,4 17,6

Self interest (EI) Company Interest (EL) Efficiency (EC)

Benevolence 14 17 20,8 Social

Friendship (BI) Team play (BL) Responsibility (BC)

23,4 23,6
Principles 12 The Law or
Rules and Procedures
Personal Morality(PI) Professional Law
(PL)
(PC)

Analysis
1. Egoism-individual : 13,6 = somewhat true, no clear sense of right or wrong regarding
the climate. Egoism, is the first and most important part, focuses on Behavior that
try to find self-interest. the assessment is in the middle, which means the
correspondent is still hesitant about it, while on the company side it seems the
individual is not ignored if it has its own criteria (meet the criteria).
2. Egoism local : 21,4 , completely true, The climate is a characteristic of the
organization .In a business company, everything is about company profit, hence the
company interest is making profit and people must concern about it. The company is
very strict about the rules and regulations, about vision and their mission. It is all the
interests of the company that is above anything else.
3. Egoism-cosmopolitan : 17,6 = mostly true, The climate is felt by most organization
members. Efficiency standards have been determined and measurable, inefficient
means not meeting the standards and people can not doing it.
4. Benevolence individual: 14 = somewhat true, no clear sense of right or wrong
regarding the climate. People still confuse about it, because they sure that company
interest above all things. If corporate interests are achieved, individual interests will
be taken into account.
5. Benevolence-local : 17= mostly true, The climate is felt by most organization
members. The interests of the group will be strongly taken into account as long as
the group purpose is in order to achieve the company's mission and vision smoothly.
 6. Benevolence-cosmopolitan: 20,8= completely true, The climate is a characteristic of
the organization. The bank's main business is as an intermediary service, so
customer satisfaction in service business is the main point to be achieved.
7. Principle- individual :12 = Somewhat Wrong, No clear sense of right or wrong
regarding the climate. In banking industry, all about rule and regulation. If people
want to make a decision, he/she should refers to the R&R of the bank, they cannot
make their own decision by their own personal.
8. Principle- local: 23,4 = completely true, The climate is a characteristic of the
organization. There is no reason for not to follow the rules and regulations, even the
company (the bank), they also gets some punishment from the regulator if
something goes wrong with the r&r
9. Principle-cosmopolitan: 23,6: completely true, The climate is a characteristic of the
organization. Comply with the law to avoid the risk that must be faced is an
obligation.

Speaking of discipline and responsibility in a job, Japanese work culture can serve as a
benchmark.Japan is known to the world as a nation of discipline and high levels of work
productivity. Japan is one of the countries that still hold seniority. There is the term Senpai (
) and Kouhai () which means senior and junior. Young people should follow the
older when asking for something. This system is absolute and becomes a system in all aspects
of life in Japan. Senior should direct and teach junior, junior even have to respect and follow
and what his senior orders. But, this seniority system can cause problems to the working and
ethical climate.

Ethical climate is an important factor in a organization that facilitates the development of

employees perception or rule and regulation. Ideally, the right or equality of each employee is
fulfilled equal to their respective capacities. The company's performance will be increase and
the company will be more quickly achieve their vision and mission goals.
What and how to improve

1. Speak the truth to the athority ,

Create a corporate culture where employees feel free to speak the truth to
management. Most employees who see mistakes do not speak well because they
believe their boss will not take action or fear if they report what they see. This
hesitancy tends to create an unhealthy and risky working environment.
2. Company shoul initiate organizational practice(ex: rewards and bonuses) in order to
increase employee perception of distributional right and justice.
3. Educate all people in organization about risk
many people don't understand what's at risk if they don't perform their jobs in an
ethical, accountable manner. It also create an unhealthy and risky working
environment. If people in a good educate, they will perform well and will comply will
all rule.
4. Ethical value must be in the criteria of evaluatingan employees job performance