JAIIB · PPB

Ethics, business ethics & banking an integrated perspective

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Principles and Practices of Banking — JAIIB.

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Q

What is the primary distinction between ethics and law in the context of banking?

A

Ethics refers to moral principles that guide behaviour beyond what is legally required, while law sets the minimum enforceable standard; ethical banking demands conduct that is lawful and also morally sound.

Q

What is the meaning of 'ethics' as applied to banking professionals?

A

Ethics refers to moral principles guiding right conduct in professional life.

Q

How does business ethics differ from general personal ethics?

A

Business ethics applies moral principles specifically to commercial activities, stakeholder relationships, and organisational decisions, whereas personal ethics governs individual conduct in private life.

Q

How does an 'integrated perspective' on ethics benefit a bank's overall functioning?

A

It aligns individual, institutional and societal values for holistic ethical behaviour.

Q

What does the term 'integrated perspective' mean when applied to ethics in banking?

A

An integrated perspective means that ethics is not treated as a separate compliance exercise but is embedded into strategy, operations, culture, and every decision across the bank.

Q

What does 'ethical banking' essentially seek to achieve for society?

A

It seeks to balance profit with social responsibility and customer welfare.

Q

Why is trust considered the foundational ethical value for banks?

A

Banks operate on public confidence; customers, depositors, and investors must trust that their funds and information are managed honestly, making trust indispensable to the banking business model.

Q

Why is integrity considered a non-negotiable attribute for banking professionals?

A

Integrity ensures honest dealings and builds long-term customer and institutional trust.

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