Page 41 - Banking Finance October 2023

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updated about their rights and obligations and all aspects To promote high standards of practice
of products and services offered to them. To provide benchmark for members to use self-
evaluation
Responsiveness: Local government should always try to serve
the needs of the entire community while balancing competing To establish a framework for professional behaviour and
responsibilities
interests in a timely, appropriate and responsive manner.
As a vehicle for occupational identity
Ethics and Morality As a mark of occupational maturity
For it, first we have to understand what morality is. Morality
is the belief system of society, culture or religion. It is the Code of ethics includes codes of ethics of integrity,
values an individual has and it helps differentiate 'right' from objectivity, competence, fairness, confidentiality,
'wrong'. Morals are standard rules created by society. It is professionalism, diligence and codes of ethics of compliance.
for an individual to decide what is right and follow the As a regulator, building these codes may not be a big
morals. For example - speak truth, being loyal, should not challenge but the critical part is how an organisation like a
steal, be patient etc. bank can deal with the same internally.

In certain cases, being morally correct might not mean that Personal Ethics and Business Ethics
it is objectively right and therefore, sometimes an action Personal ethics: Personal ethics is a class of philosophy that
may be morally correct but it might not be correctly legally governs an individual's beliefs about morality and correct or
or vice versa. incorrect behaviours. Personal ethics is the basic standards
and values that influence interaction among individuals.
Difference between Ethics and Morality

1. Morals are general guidelines framed by the society, like Business ethics: Business ethics can be explained as either
respect your elders while ethics is an application of these written or unwritten codes of guidelines and values that
guidelines to a particular situation. influence the decisions and actions within a company. In the
business world, the organisation's culture sets standards for
2. Morals are prescribed by society, culture or religion determining the difference between good and bad decision
whereas ethics that governs an individual's life is chosen making and behaviour.
by individual himself.
3. Morals are largely related with principles of right or Conflict between Personal ethics and Business
wrong. On other hand, ethics emphasizes more on right ethics :
and wrong conduct.
Ethical clashes or dilemmas may arise in several situations
4. Morals usually differ from society to society and culture like:
to culture as opposed to Ethics, which remains identical, 1. The individual ethics may clash with the group ethics
irrespective of any culture, religion or society. predominant in the organisation.
5. Morals do not have any business applicability, while Ethics 2. The individual ethics of a single powerful person in the
is broadly pertinent in the business as business ethics. organisation may be predominant in the organisation.
If that individual is ethical and works for the good of all
Ethics is about moral principles. Codes of ethics are general the shareholders, it results in the positive outcome but
standards which have to be uniformly followed by everyone if that person is unethical, it may result in negative
engaged in the same profession. Code of conduct is impact on the organisation.
enforceable while codes of ethics are standards which have 3. In some cases, employees may be taught to ignore any
to be followed voluntarily by members in the interest of their issue, which he or she thinks is unethical.
clients as well as their own.
Although it is important to resolve these ethical dilemmas,
Code of ethics is required: the answer is not to compromise and go along with
To define acceptable behaviours management or the group on business ethics issues. Open

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