ETHICS · ETHICS

Ethics, Business Ethics and Banking

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Ethics in Banking — Ethics in Banking.

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One-liners from this chapter

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Q

What is the most accurate definition of 'business ethics' in a banking context?

A

Business ethics in banking refers to the application of ethical principles to business decisions, balancing profit-making with responsibility to customers, employees, society, and the environment.

Q

Why is the belief that 'staff are already ethical and need no training' considered a myth in banking?

A

Acting ethically is difficult; good character alone cannot resolve complex dilemmas.

Q

Why is mere legal compliance insufficient to constitute business ethics in banking?

A

Compliance with laws sets only a minimum standard of conduct; business ethics goes further by requiring banks to act with integrity, fairness, and moral responsibility beyond what the law mandates.

Q

Is Corporate Social Responsibility (CSR) the same as business ethics in banking?

A

No, CSR is only one aspect of business ethics; CSR does not cover workplace ethics.

Q

How does business ethics differ from the goal of pure profit maximisation?

A

Pure profit maximisation ignores moral obligations to stakeholders, whereas business ethics requires balancing financial goals with broader social and ethical responsibilities.

Q

What does 'trust' depend on according to the chapter's discussion on banking professionals?

A

Trust is a function of consistent professional conduct over time.

Q

What is the relationship between ethics and banking as a profession?

A

Banking as a profession demands high ethical standards because banks are custodians of public trust and funds, making ethical conduct essential to their core function.

Q

Which principle of business ethics is defined as treating each individual as an end rather than a means?

A

Dignity — treating individuals with courtesy and respect as ends in themselves.

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