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Chapter 6:Ethics In Banking (Ethics (a) Individual character b) Social…
Chapter 6:Ethics In Banking
Ethics
a) Individual character
b) Social rules that govern our character
A set of standard by definition or a set of principle that people use to decide what is right and what is wrong
Business ethics
It refers to what is right and wrong in conducting business or norm in business
-non acceptance of bribery
-not bias in decision making
-not engaged in immoral activities
Invite a challenge with 3 parts:
a) Developing managers as moral individuals
b) Building an environment in which standards and values are central to the company’s strategy
c) Formulating and implementing policies that support ethical performance as well as safeguards to assure they are observed
Moral
Things that are right and approved by the society
Moral obligation is a duty which one owes and which he ought to perform, but which he is not legally bound to fulfill
Personal attributes required of a banker are:
🔥Trustworthy
-Maintain secrecy regarding customers account
🔥Honest
-To perform duties according to rules and regulations of the bank
🔥Good faith
-To act in good manner acceptable to general banking practices
🔥Discipline
-To maintain acceptable working attitude such as punctuality
3 characteristics associated with moral judgements are
🌹Moral judgement about the rightness or wrongness of an action
🌹Moral judgement is important
🌹Moral praise can properly accompany the doing of morally right actions
Moral responsibilities are
💋Holding people morally accountable of their past actions
💋Refer to accountability for care, welfare, ot treatment of others as derived from the specific social role that one play
💋Refers to capacity for making moral or rational decision on one’s own
Wide range of set company responsibility:
🍌Economic Responsibility
-To produce goods and services and to provide jobs and good wages to workers while earning a profit
🍌Legal Responsibility
-Companies act as fiduciary, managing the assets in the interest of shareholders.
🍌Social Responsibility
-It is often expressed as the voluntary assumption of responsibilities that go beyond the purely economic and legal responsibilities of the company
Code of Good Banking Practice
It is code implemented on 1 July 1995 by the Association of Banks on Malaysia in order to promote good banking practice in Malaysia 🇲🇾
Principal objectives of the Code are:
⚽️Established minimum standards of good banking practice which customers are entitled to receive in their dealings with banking institutions
⚽️To promote a more transparent and fair relationship between the institutions and their customers
⚽️To ensure that customers have an understanding of how their accounts operate as well as the banking offered
⚽️To maintain confidence in the security and integrity of banking and card payment system
Code of Conducts/Ethics
🍉To avoid conflict of interest
🍉To avoid misuse of position
🍉To prevent misuse of information gained through the financial institution’s operation
🍉To ensure completeness and accuracy of relevant records
🍉To ensure confidentiality of communication and transactions
🍉To ensure fair and equitable treatment of all customers
White collar crimes
🦗Fraud
🦗Cheating
🦗Forgery
🦗Misappropriation
🦗Exchange control violations
🦗Tax evasions
🦗False accounting/manipulation of account
🦗Counterfeiting currency 💴
5 main responsibilities associated with banker
🦆Towards the Employees
🦆Towards the Customers
🦆Towards the Shareholders
🦆Towards the Government
🦆Towards the Society