Page 39 - Banking Finance October 2023

ARTICLE

The points 1 & 2 above clearly mention that such frauds Special ethics is also known as applied ethics. Hence for an
happen due to involvement of employees/staff. The reason individual, values and judgements play a critical role
behind such involvement is lack of ethics and ethical whenever he or she is making ethical decisions.
behaviour. There is a need of ethics to be followed by every
employee whether it is business, governance, banking, Consequences of ethics in human
other financial institution and other places.
actions:
In this article, we will discuss in detail, the various aspects Ethics significantly focuses on human behaviour, which is
of ethics in business, banking and the habits/values to be driven by human actions. Ethics is concerned with human
developed to become an ethical banker. actions that are deliberate i.e.
1) it was done voluntarily
The purpose of business is to make money. If it does not, it
2) It was done with some knowledge
will fail in its primary objective. It should be in the ethical
way. Ethics is equally pertinent for individuals as well as for 3) Such actions were freely done
the business. The word ethics is derived from the Greek
word ethos (character) and from the Latin word mores Human actions are subject to scrutiny, if the action is carried
(customs). Together, they combine to define how individuals under the factors such as-
choose to interact with one another. In philosophy, ethics 1) Ignorance or lack of knowledge
defines what is good, both for the individual as well as for 2) Passion
the society, and establishes the nature of duties that people
3) Under the influence of fear
owe to themselves and to one another. Hobbes is called the
father of modern ethics. 4) action influenced by violence
5) Actions performed out of habit or voluntariness
There are three dimensions of ethics namely personal,
professional and managerial. Certain values that are 6) Temperament
essential for professional are responsibility, respect, fairness 7) Pathological states
and honesty. In business, ethics deals with the question
whether specific business practices are acceptable. In case Business Ethics and Business Values
of managers, business ethics helps in arriving at ethical
decision during complex situations. For example- In a sales Business values are an informal term and it explains the core
principles or standards that guide the way business is done.
presentation to a client, should a sales person omit the facts
about a product's poor safety records? Ethics for the Values sum up what your business stands for and what
managers is a combination of a moral person and a moral makes it special.
manager. It also means communicating openly, explicitly and
frequently about ethics and values. Personal values have Business Ethics Business Values
significant influence on ethical decision making. For example, Ethics refers to the Value is defined as the
doing personal work during office such as searching on the guidelines for conduct principles and ideals which
Internet, taking credit for others work, doing homework of that address questions help them in making
the children at office time etc. about morality engagement of what is
more important
Ethics is known as moral philosophy and as a science of Moral principle system Induces thinking
morality. Ethics can be described as a science that examines What is morally correct What we want to do or
the general principles for determining the true worth of the
or incorrect in the given achieve?
ultimate ends of human conduct. Ethics that develops situation?
principles pertaining to the morality of human actions is
general ethics. While application of principles, developed in Magnitude of rightness It explains the level of
general ethics to people's conduct towards themselves, or wrongness of one's significance
other human beings, society and the state is special ethics. options

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