Resource : V- comply editorial , ( 2014 )
Regulations & Ethics , the two controversial words which has led to forming and continuation of development & key secured point to man kind is obvious .Ethics are been seen in each & every field & it has been eveloved to keep the culture of any development .Further This blog illustrates on few business ethics & discuss of the effects & situational analysis of fundamentals to banking business & impact on Banking Sales Culture .
Source : tutor2U , ( 2015)
Definitions of Business Ethics :
- Business ethics is the study of appropriate business policies and practices regarding potentially controversial subjects including corporate governance,insider trading bribery, discrimination, corporate social responsibility, and fiduciary responsibilities. The law often guides business ethics, but at other times business ethics provide a basic guideline that businesses can choose to follow to gain public approval. ( investopedia , 2015 )
- Business ethics is a topic receiving much attention in the literature. However, the term ‘business ethics’ is not adequately defined. Typical definitions refer to the rightness or wrongness of behavior, but not everyone agrees on what is morally right or wrong, good or bad, ethical or unethical. To complicate the problem, nearly all available definitions exist at highly abstract levels. Lewis P V , (1985)
- is the application of ethical values ( fairness , honesty , openness and integrity ) to the business behavior .it applies to all aspects of business conduct (inc.employement practices ) but also the discretionary actions that organizations and employees make on daily basis in practice . CIPD , (2013 )
In consideration of above all to banking business ethics , values are been kept as primary effective option .Trust & Integrity could be seen as the greatest impact on forming of banking business.If we consider early beginnings , Autocrats used to keep their valuables insider Banks ' safety lockers .All important Files were kept and bankers were Charged certain amount of commission to keeping their Valuables safety .Bankers were recognized as pillars of Utmost Trust .
Implementation & continuation of practices such as Oath of Secrecy could be a living example Those who joins to banks are used to sign this oath o secrecy and any deviation or violation would be punished with heavy disciplinary actions .
Bankers are taught to be conduct excellent customer service with out any discrimination and this has been another pillar of client attraction and could be a reflective of bottom Line .Further bank culture is fully designed with keeping client ethics.This has been implemented with banks communication policy to safe guard Client respect & importance for banking business .
Banks are more focused into fee and commission base income since this would be a clear hot to bottom line.& focus more into trade related activities , all trade related activities are based on situational impact and information circulation on best buying and best selling opportunities .useally Traders ( Business People , ) communicate these information s' to their banker to mitigate any loss or dis advantage as a course of action Eg : Forward booking in banking Treasury .
It could be seen that banking business is much governed with Ethics than regulations .All regulations are been imposed to show case the borderline of business ethics and practicing o ethics would be the back bone of banking business continuation .
Reference
- V Comply - editorial, (2014), Ethics in business world [ONLINE]. Available at: https://blog.v-comply.com/ethics-in-the-business-world/ [Accessed 6 January 2020]
- tutor2U. (2020). Topic briefing - Business ethics. [Online Video]. 27 May 2015. Available from: https://www.youtube.com/watch?v=EK1ak9lXLo8. [Accessed: 6 January 2020].
- investopedia. 2015. Business Ethics. [ONLINE] Available at: https://www.investopedia.com/terms/b/business-ethics.asp. [Accessed 6 January 2020].
- Lewis, P.V., 1985. Defining ‘business ethics’: Like nailing jello to a wall. Journal of Business ethics, 4(5), pp.377-383.
- huczynski, A and Buchanan , D 2013.organizational behaviour : An introductory text. Financial Times/prentice Hall.Chp2
- Svensson and Wood, (2008), The ethical Business module [ONLINE]. Available at: https://www.researchgate.net/figure/A-model-of-business-ethics_fig2_46545845 [Accessed 6 January 2020].
Very Insightful Venison Consulting! Organizational culture is the key for reinventing an organization and build an excellent great team through team goals, long term vision/purpose, right players in place, clear roles, responsibilities, tactical, strategic decision making protocol, sense of ownership along with accountability. When team is strategically aligned, bottom line will show the outcome itself! We train our clients how to shift the mindset, looking things from different perspectives be
ReplyDeleteThank you Sameera
DeleteTo my understanding the term "client ethics" which you have used in this article must be followed by any organization which provides services. Good in-depth explanation!
ReplyDeleteThank you Pubudu
DeleteMostly agreed with Rasika as the banks are the most sensitive sector as well as the most vulnerable for unethical practices. Ethics playing a major roll as if customers loos trust on bank by their experience of unethical practices they will hardly take a risk of depositing or investing their hard earned money. As per allafrica.com (2019), Nagerian banking sector has badly effected by totally unethical practices hence lost its customers trust. Bad practices such as ATM frauds, stealing money from customer's accounts, credit card scams, money loundering, investment frauds, toxic loans and banking law violations were common.
ReplyDeleteThank you Kelum for your valuable comments and agree with the points you have brought in .
DeleteEthics are very important for financial companies like banks. Good approach.
ReplyDeleteThe requirement of ethical environment has become one of the critical issue in any types of organisations..when its come to business it is very much needed and when it comes to the banking sector ethical management is highly recommended to maintain professionalism while serving clients with the best financial solutions.
ReplyDeleteThe foundation of the bank is its' reputation of integrity!
Well explained on the topic Rasika!
You have well explained about the importance of ethics in banking sector.great article.
ReplyDeleteThank you Thilina
DeleteBusiness ethics is defined as "the process of evaluating decisions, either before or after, with respect to the moral standards of society."Core ethical values include honesty, integrity, fairness, responsible citizenship and accountability. In short, business ethics means choosing the good over the bad, the right over the wrong, the fair over the unfair, the truth over the lie. Observing the law is one basic professional requirement for banks.
ReplyDeleteAgree with your comments Afraz , Trust & accountability is the key points of Customer banker relationship .
DeleteGreat article about ethics and its importance to the banking sector through the HRM! keep up the good work!
ReplyDeleteThank you Sandeep
DeleteYou have applied the basics into your field and it is commendable. Anyway please be mindful about citations.
ReplyDeleteWell written article
ReplyDeleteThey must also pay close attention to moral concerns in order to make the right ethical decisions on a day-to-day basis. The upholding of an ethical culture in banking is of critical interest to regulators, banks, employees and customers alike
ReplyDelete