Introduction to Ethics · One-liners

1. What is the etymological root of the word 'ethics'?

→ Greek word 'ethikos' meaning 'relating to character', rooted in 'ethos'.

2. Why is ethics operational core to banking, not optional?

→ Banking collapses without public trust; no balance sheet survives loss of confidence.

3. What are the three questions ethics continuously seeks to answer?

→ What are moral standards? Why are those standards? How do people practice them?

4. Define ethics using the 'public test' according to Deepak Parekh.

→ Not doing something one would be ashamed of if it becomes public.

5. List the five objectives of ethics using the D-N-E-P-E mnemonic.

→ Diagnostic, Normative, Evaluative, Prescriptive, Expressive.

6. Is ethical conduct necessarily legal conduct in banking?

→ No. A bank can comply legally but act unethically, e.g., mis-selling unsuitable products.

7. How does Adam Smith's 'invisible hand' relate to business ethics?

→ Market exchange benefits both parties; ethics ensures doing well by doing good, not harm.

8. Is ethics a cost or competitive advantage in banking?

→ Long-term competitive advantage: ethical banks earn trust, lower scrutiny, higher loyalty.

9. Who benefits from ethical banking conduct?

→ Customers, employees, regulators, government, investors, and society all gain trust and value.

10. Why did ethics evolve in human society historically?

→ To prevent violence, establish order, enable peace, and allow productive work and growth.

11. What did Socrates believe about virtue and the examined life?

→ Virtue is knowledge; an unexamined life is not worth living.

12. What is Aristotle's core ethical contribution?

→ Virtue ethics: a life lived according to virtues is the best life.

13. How did Thomas Hobbes shift modern ethical thought?

→ Ethics grounded in social contract and human nature, not divine command.

14. What are the key ethical commitments of Indian democracy per Constitution?

→ Free elections, tolerance, Fundamental Rights, rule of law, citizen participation.

15. How does India's plural society affect ethical standards?

→ Multi-religious, multi-ethnic, multi-lingual with traditional to modern value systems.

16. Distinguish ethics from a mere emotional expression.

→ Ethics is rational analysis concluding what decides right/wrong behavior, not 'be good' sentiment.

17. Define welfare state and its ethical obligation in banking context.

→ State has ethical duty to promote citizen well-being; banks must serve weaker sections via PSL, subsidized healthcare, social security schemes.

18. What is Priority Sector Lending (PSL) in Indian banking?

→ Regulatory mandate compelling banks to lend to agriculture, MSMEs, weaker sections—embedding welfare ethics into financial regulation.

19. Distinguish religious authority from ethical authority.

→ Religious authority: from scripture/faith. Ethical authority: from reason and well-being of others. One can be religious yet unethical, or ethical yet non-religious.

20. What does law codify, and what are its three limits?

→ Law codifies moral standards. Limits: slow (morality evolves faster), incomplete (cannot anticipate all scenarios), minimum (sets floor, not ceiling).

21. What is the 'newspaper rule' for workplace ethics?

→ If an act would embarrass you on tomorrow's front page, it is unethical—irrespective of legality.

22. List four common workplace ethical dilemmas in banking.

→ Personal work during office hours, taking credit for colleague's work, inflated medical claims, misuse of customer data.

23. What is the ethical difference between legal compliance and ethical excellence?

→ Legal compliance is minimum standard; ethical excellence demands going beyond law. All illegal acts are unethical; not all unethical acts are illegal.

24. How does RBI Digital Lending Guidelines address algorithmic fairness?

→ Requires AI/ML credit-scoring models be fair, explainable, non-discriminatory—encoding ethics into model governance.

25. What are penalties under DPDP Act 2023 for data breaches?

→ Penalties up to ₹250 crore; translates ethical principle 'do not misuse customer data' into binding law.

26. What does RBI's whistle-blower framework institutionalize?

→ Robust mechanisms with confidentiality and retaliation protection—institutionalizing ethical duty to report wrongdoing without fear.

27. What is the core distinction between morality and ethics?

→ Morality: actual code of conduct a community lives by. Ethics: systematic study and justification of that code.

28. Define Velasquez's three elements of systematic ethical enquiry.

→ What are moral standards? Why are they standards? How do people practice them?

29. What is virtue ethics per Aristotle?

→ Life lived in accordance with virtues is best human life; ethical character cultivated by habit produces ethical action.

30. List five objectives of ethics.

→ Diagnostic (judge behaviour), normative (establish standards), prescriptive (recommend conduct), investigative (explore foundations), descriptive (describe practices).

31. How does bundled consent in mobile apps conflict with ethics?

→ Legally compliant but unethical: law sets minimum; informed and free consent is ethical floor, not forced consent bundled with service denial.

32. What should a loan officer do under pressure to sanction weak loan?

→ Document weaknesses in writing, escalate formally through whistle-blower channel—combining institutional duty with ethical responsibility.

33. Why is structured deposit product with hidden fees unethical despite legal disclosure?

→ Mere legal compliance insufficient; fairness and genuine informed consent are higher ethical standards—illustrating illegal ≠ unethical relationship.

34. Define ethics in one sentence per the chapter.

→ Rational, systematic enquiry into standards of right and wrong human conduct in action.

35. How do ethics and law relate?

→ Law sets the minimum floor; ethics demands conduct beyond legal compliance.

36. Distinguish morality from ethics.

→ Morality is what is practised; ethics is rational study, evaluation, and justification of practice.

37. Name Velasquez's three ethical framework questions.

→ What is the ethical issue? Why does it matter? How should one act?

38. List five objectives of ethics per the chapter.

→ Diagnostic, Normative, Evaluative, Prescriptive, Expressive — never punitive.

39. What is Aristotle's core ethical principle?

→ A life lived according to virtues is the best human life; virtue creates eudaimonia.

40. How do religion and ethics differ in authority?

→ Religion derives authority from faith; ethics derives from reason and others' well-being.

41. What does DPDP Act 2023 penalise regarding customer data?

→ Selling or misusing customer database for third-party marketing; penalties up to ₹250 crore.

42. Is consent obtained via bundled, take-it-or-leave-it terms ethical?

→ No. Ethical consent requires both informed and free agreement, not just disclosure.

43. Can a deeply religious person act unethically?

→ Yes. Religion and ethics draw different authority; they can diverge in practice.

44. Is petty misappropriation of office resources ethical?

→ No. Small in value but large in implication — breach of fiduciary duty and integrity.

45. What link exists between India's welfare state and banking?

→ Directive Principles operationalised through PSL, PMJDY, APY — banks must serve weaker sections.

46. Name the commercial value of ethics in banking.

→ Long-term competitive advantage: deposit retention, lower regulatory scrutiny, employee engagement.

47. How should a junior officer handle supervisor misconduct?

→ Document and escalate formally through institutional channels, not wilful blindness or polite refusal.

48. What is the origin of formal ethics?

→ Greek philosophy (Sophists onwards); medieval era: religious ethics; Hobbes: modern ethics.

49. Is aggressive marketing without ethics compatible with trust?

→ No. Aggressive marketing minus ethics destroys trust over time and undermines competitive advantage.

50. Attribute: 'A life lived according to virtues is best human life.'

→ Aristotle — virtue ethics and eudaimonia.

51. What is the etymological origin of the word 'Ethics'?

→ Derived from Greek 'ethikos', meaning relating to character; root word 'ethos'.

52. How does Bernard Williams define ethics?

→ Ethics addresses the broad question: 'How should one live?'

53. What is Aristotle's core thesis on ethics?

→ A life lived in line with virtues is the best, happiest, most flourishing human life.

54. Define ethics vs. morality.

→ Ethics = rational study and justification of conduct; Morality = actual practices a community lives by.

55. What is the key difference between ethics and religion?

→ Religion derives authority from faith; ethics derives authority from reason. One can be ethical without being religious.

56. What is the key difference between ethics and law?

→ Law is enforceable by state; ethics is not. All illegal acts are unethical, but not all unethical acts are illegal.

57. Name the five objectives of ethics in order.

→ Diagnostic, Normative, Evaluative, Prescriptive, Expressive.

58. What does the Diagnostic objective of ethics accomplish?

→ Studies human behaviour and assesses whether it is moral or immoral—a fact-finding goal.

59. What does the Normative objective of ethics accomplish?

→ Establishes moral standards and norms of behaviour that ought to apply to everyone in similar situations.

60. What does the Prescriptive objective of ethics accomplish?

→ Prescribes moral behaviour—tells us how we ought and ought not to behave.

61. What does the Expressive objective of ethics accomplish?

→ Expresses opinions about human conduct and articulates the collective moral voice of society.

62. What is the Descriptive Method in ethics?

→ Empirically describes prevailing moral practices without judging them; useful for sociology and anthropology.

63. What is the Normative/Comparative Method in ethics?

→ Compares different ethical systems, evaluates reasoning, and arrives at principles guiding conduct.

64. Define Thomas Garrett's view of ethics.

→ Science of judging human ends and means—the art of controlling means to serve human needs.

65. How does business ethics relate to competitive advantage?

→ Doing well by doing good; ethical conduct is a long-term competitive advantage, not a luxury.

66. What is Deepak Parekh's test for ethical conduct?

→ Don't do anything you would be ashamed of if it became public—the 'newspaper test'.

67. What welfare-state ethical duty do Indian banks bear?

→ Serve weaker sections through Priority Sector Lending (PSL), regardless of bank ownership.

One-linersIntroduction to Ethics