ETHICS · ETHICS

Ethics at the Individual Level

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

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Q

What is the primary ethical obligation of a bank employee who witnesses a senior manager approving loans to relatives without due process?

A

The employee should report the misconduct through the bank's whistle-blower mechanism while documenting the facts, prioritising loyalty to the institution over personal loyalty.

Q

What must be true of a 'value' according to the chapter's definition?

A

It must be desirable for all, with universal command and acceptability.

Q

Why is ignoring misconduct by a colleague or superior considered an ethical failure for a bank employee?

A

Ignoring misconduct makes the employee complicit in the wrongdoing, as individual ethical responsibility requires speaking up against violations of due process.

Q

How does the chapter distinguish a terminal value from an instrumental value?

A

Terminal value is an ultimate end-state; instrumental value is a behaviour mode to achieve it.

Q

What does the term 'ethics at the individual level' mean in the context of banking?

A

It refers to the personal moral standards and conduct that each bank employee is expected to uphold in their daily professional actions and decisions.

Q

What failure does 'management by values' address when praised values are ignored in practice?

A

Misalignment between stated values and actual behaviour, creating double standards.

Q

Why is institutional loyalty considered more important than personal loyalty in banking ethics?

A

Institutional loyalty ensures that processes, fairness, and public trust are protected, whereas personal loyalty can lead to favouritism and corruption that harm the bank and its customers.

Q

Why is non-disclosure of a family relationship in a business recommendation ethically problematic?

A

It creates an undisclosed conflict of interest, breaching integrity even if justified.

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