ETHICS · ETHICS · Chapter 1

Introduction to Ethics

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 etymological root of the word 'ethics'?

A

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

Q

Why is ethics operational core to banking, not optional?

A

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

Q

What are the three questions ethics continuously seeks to answer?

A

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

Q

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

A

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

Q

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

A

Diagnostic, Normative, Evaluative, Prescriptive, Expressive.

Q

Is ethical conduct necessarily legal conduct in banking?

A

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

Q

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

A

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

Q

Is ethics a cost or competitive advantage in banking?

A

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

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