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