Banks are more regulated in the word since they have engaged in financial intermediaries. The banks are primarily funded by depositors and their core responsibility is to ensure to maintain the trust placed by the depositors and to minimized every possible risk in their investment. Banks also provide an effective payments system to the industry to settle their customers ' business, personal transactions, and international obligations. Hence, banks must operate within certain guidelines as defined by law, public policy, practice or convention.
The code of ethics acts as the foundation
on which banks will make decisions based on fairness, dignity, confidence and
faith in today's banking industry (Sanusi, 2010).
A standardized code of ethics gives banks
with a knowledge and understanding of the responsibilities and behavior
expected from them, A code of ethics represents expectations and defines a
practical style of behavior that extends to all bank employees, from the top
management to the lowest level of bank employees. The image and the reputation
of a bank and its actions reflect the ethical conduct and that affects its
potential for profit and growth.
All the bank employees must have
some sort of good knowledge about the ethics & the organization guide lines
& policies to make perfect decision in challenging business situation and
have knowledge about where to report possible unethical conduct. Legislation
has been available to regulate the banking activities to ensure a fair
competitive environment.
However, regulations and sanctions
are not enough to ensure operational discipline. Therefore, it is expected that
high ethical standards will guide banking industry operations (Ali Yidawi,
2005).
Reference
Ali, Y. (2005).
“A Survey of Ethics in the Nigerian Banking Industry”. Swiss: St. Clements
University, 23-66. From www.stcle.edu/grad/gradyida retrieved on 15th November,
2011.
Sanusi, J. O. (2000), “Ethics and Professionalism in Banking. A past Experience and Challenges for Industry Operators in Nigeria”, Annual Dinner: CIBN, 2000, p.3-7.
Video Link- https://www.youtube.com/watch?v=GtHrouodTIo
Ethical principles in business are not materially different from ethical principles in general because business actions have to be judged in the context of society’s standards of right and wrong. There is not a special set of rules that businesspeople decide to apply to their own conduct.
ReplyDeleteBusiness ethics involves the application of general ethical principles to the actions and decisions of businesses and the conduct of their personnel. While most company managers are careful to ensure that a company’s strategy is within the bounds of what is legal, evidence indicates they are not always so careful to ensure that their strategies are within the bounds of what is considered ethical.
It’s incumbent on strategic managers to recognize conditions that give rise to unethical business strategies and behavior.
Companies do have ethical responsibility and are notprotected by limited ability from the consequences of their actions. Company's record and the perception of its ethics affect its reputation and ensure long term success or failure . Interestig article .
ReplyDeleteThanks
DeleteYou blog relevant to your trade is much appreciated.
ReplyDeleteBankers are trusted by the people who ask them to look after their money. In addition they trust the bankers to lend their money responsibly. The business depends on the “Trust” and thus the Ethical responsibility is much higher than liability.
https://doi.org/10.1007/BF00383031
Thanks Dr
DeleteAs you mentioned all employees must have knowledge about the ethics, guide lines & policies. To have a fair play, legislation should be there on top of organizational ethics to protect the clients and industry.
ReplyDeleteEthics are vital for every sector. Specially for financial organizations. Good article !
ReplyDeleteTo perform in banking system, there should be trust & relationship between customer & employee. In addition to that business ethics are very important. It affects the organizational reputation as well. Good artical
ReplyDeleteA bank's responsibility extends to Government, customers, shareholders, staff and the community. In the future, as we face increasingly complex and conflicting issues, our resolve and commitment to ethical behaviour will be tested.
ReplyDeleteWhereas being careful of the standards of profitability and productivity, banks are obliged to comply with certain ethical standards of managing an account calling and organizational ethics, which incorporate honesty, integrity, social duty, accountability, and fairness.
ReplyDeleteYes doctor bankers are more reaponsibility for pepole money.
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ReplyDeleteEthics are very important for every organizations and companies. Ethical environment provide a better services for their customers.
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