JAIIB · PPB · Chapter 1

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 core distinction between values and ethics?

A

Values are the things that matter to a person in selecting what is more important, while ethics is an external system of moral codes society adheres to about right and wrong.

Q

What is the defining feature that distinguishes 'values' from 'ethics' as per the chapter?

A

Values are internal (what matters to a person); ethics is external (moral codes society adheres to about right and wrong)

Q

How does the chapter define 'ethics' in its broadest sense?

A

Ethics is a system of moral codes and principles that society collectively adheres to in determining what is right and wrong conduct.

Q

According to the chapter's 'Myths vs Reality', what is the truth about managers facing complex ethical dilemmas?

A

They often struggle to resolve them because there is a conflict of principles

Q

What does 'business ethics' refer to in the context of banking?

A

Business ethics refers to the application of ethical principles and moral standards to business activities, decisions, and relationships within banking and financial institutions.

Q

As per the chapter's Myths vs Reality, what is the relationship between business ethics and daily operations?

A

Business ethics has a lot to do with the daily operations of an organisation (it is NOT just a philosopher's privilege)

Q

Why is ethics considered especially important in banking compared to other industries?

A

Banking involves managing public money and trust, making ethical conduct critical to maintaining financial stability, public confidence, and the integrity of the entire financial system.

Q

What is the chapter's view on an ethical bank closing a loss-making unit by compensating redundant staff?

A

Doing the rightful thing may be costly short-term but proves beneficial in the long run and provides competitive advantage

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