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The importance of ethics to a bank
Case study of ethics in finance
Improve ethics in finance
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Recommended: The importance of ethics to a bank
Described by Sullivan, S (n.d.), code of ethics “generally refers to a set of behavioral rules employees should follow to ensure the company’s values are reflected in all the business dealings.” Bearing this in mind, the National Bank of Dominica (NBD) Ltd is guided by a “code of conduct policy” which contains details on the general standards of ethics, conduct and behavior that staff must comply with and maintain as part of their employment condition or appointment. This guideline applies to all employees or staff across all levels. The bank’s code of ethics promotes honesty, integrity and ethical conduct, compliance with regulators/ government rules and regulations and required disclosure. The code of ethics proactively promoted ethical …show more content…
Hence, the code of ethics encourages the reporting of any accidents and risks on the bank’s premises, a safe and tidy work area, the avoidance of violence and the compliance with the bank’s health safety requirements and emergency preparedness. (National Bank of Dominica Ltd, 2012: Code of Conduct) NBD’s employees are required to adhere to the code of conduct/ethics at all times. Hence, improper conduct may lead to disciplinary action as it relates to the code of conduct. An employee convicted of improper conduct, criminal activities, impropriety, oppressive, deceitful conduct, whether lawful or unlawful, violence and dishonesty that in NBD’s sole opinion adversely affect the reputation and corporate image of NBD will lose confidence in the employee. (National Bank of Dominica Ltd, 2012: Code of Conduct) (b) Explain how the corporate governance in your company supports the ethical management of the …show more content…
Ethics is a discipline in dealing with staff, customers, partners, supplier and other parties as it relates to the bank’s moral duties and obligations. Hence, the bank’s corporate governance encourages the ethical standards which are vital for its long term survival. The NBD has implemented a comprehensive corporate governance framework which is supported by legal and regulatory regime, risk based supervision, detailed responsibilities and/ or roles of the board and management and ethical policies that encourages the code of ethics. An important attribute of corporate governance that improves the standing of the bank is the adoptions of ethical standards in dealing with the fight against corruption and related offenses. As such, the NBD has executed “Whistle blowing.” This is an established policy, encouraged by the board, which is focused on the “conditions and procedures for investigations of allegations of corruption, fraud and misconduct/ inappropriate behavior.” (National Bank of Dominica Ltd 2012) The policy’s main aims are
There are even challenges of sustaining employee morale and culture in a business. Culture begins with the CEO, and executives, and is passed down through training and mentoring to managers and entry level employees. Wells Fargo’s culture seems to have been maintained for the most part, but in the context of pressure and competition it changed drastically. The fact that employees felt the need to participate due to pressure and fear that if they called the ethics hotline they would be fired, speaks volumes about how important gaining more customers meant to executives pushing the competition. According to Business Ethics: Ethical Decision Making and Cases cultural relativism is “the concept that morality varies from one culture to another and that ‘right’ and ‘wrong’ are defined differently” (John Fraedrich, L. F., 2017). In the case of Wells Fargo, their wires are crossed in their ideals of right and wrong. Most decisions are not black and white in cultures—there are always grey areas. Pertaining to cultural realativism, “by defending the payment of bribes or ‘greasing the wheels’ of business and other questionable practices in this fashion” Wells Fargo has gone above and beyond with their cultural
The ethical code of an organization illustrates the importance of being honest, acting with integrity, and showing fairness in decision making (Bethel, 2015). Ultimately, “laws regulating business conduct are passed because some stakeholders believe they cannot be trusted to do what is right” (Ferrell, Fraedrich, & Ferrell, 2015, p. 95). In the last couple of years, culture has become the initiator for compliance, which means from the top down there has to be a commitment to act in a way that represents the company’s core values (Verschoor, 2015).
I believe that every company should encourage a relationship of trust, loyalty, honesty, and responsibility among staff members at all levels. It’s important that each staff member works together to achieve excellence in a business, so the code of conduct is put in place. The purpose of the code is to provide guidance and set common ethical standards for employees from the top of the food chain to the bottom of the food chain. Some of the areas that I find to be significant of importance in a business are sexual harassment, discrimination and simply being professional in a work environment.
Bernardi, Richard A., and LaCross, Catherine C. "Corporate Transparency: Code of Ethics Disclosure." The CPA Journal (2005). Retrieved on 16 September 2006 .
Ethics or rather morals entail mechanisms that defend, systematize as well as recommend conceptions of right or wrong. Many organizations develop ethical codes to ensure employees and employers understand the difference in doing good or bad. In that respect, ethics are an essential aspect of successfully running of any organization or government. Ethics ensure employee’s productivity levels are up to the required standards. It also assists them to know their rights and responsibilities. Additionally, employers, as well as any persons in management, are guided by them to ensure they provide transparent leadership. Ethics also defines how customers should be handled. Ethical codes govern the relationship between customers and an
Seawell, Buie 2010, ‘The Content and Practice of Business Ethics’, Good Business, pp. 2-18, viewed 22 October 2013, .
This concern of integrity and organizations like Wells Fargo to do what is right stems from our personal ethical framework. We all have one which helps us decide what is right and what is wrong. It is this decision that is a concern for organizations that must be managed on a day to day basis. Company’s such as Wells Fargo are so big that bad ethical behavior may be overlooked and not dealt with until the damage has already been done. Other organizations need to learn from Wells Fargo and start addressing their own organization ethical framework. This would include the organizational culture, business strategies, employee ethics concerns and the overall ethics and decision-making
On the other hand other factors are the results of organizational culture or internal environments. In Wells Fargo’s case the factors include risk of military invasion, intelligence property protection, favored trading practices and pricing regulations, other adding factors are antitrust laws and money centered banks. Regardless of these contributing factors ethical behavior should always be abided. According to Wells Fargo code of ethics and business, conduct is the guiding principles involving every one of Wells Fargo teams. One of Wells main goals is to practice ethical behavior from an employee level as well as an organization.
To provide an example of a breach of ethical conduct in the workplace, we may remember the case of a financial manager in a corporation that decided not to pay overtime to some employees. After a deep outside investigation, the company was summoned with thousands of dollars to remedy the payment that was supposed to be paid to all employees who worked more than forty hours per week. Again, it is needed more than just a booklet stating that the company adheres to the code of business ethics. It is needed serious managers that can run the company with the most seriousness as possible. Consequently, any written codes of business ethics, regardless of how well it has been crafted, need people that adhere to its internal content with a serious desire to do the right thing.
,dishonesty ,substance abuse and absenteeism. Would all play a part in the ethical violation of
Nowadays, society is governed by the implications of rules and legal restrictions. All of these rules were created to uphold and maintain the idea of ethical and moral values. Even children growing up were taught by some very important codes of ethics at school. These lessons learned as a youth growing up carry over into adulthood, as an employee or manager. Managers and workers both follow a similar code of ethics within the work place. Today, as a management consultant, I am going to prepare a code of ethics for my clients as they have recently started a restaurant called Knox, it is important to have a code of ethics in every company for their employees and also a circular by explaining the purpose and benefits of a good ethics. And finally, a brief report on the steps of strategic formulation and implementation.
Although Hollate introduced a compliance program and code of conduct when it went public, the programs were put on “the back burner”. This outcome is not surprised for that the company does not pay attention to the programs. It is, therefore, important to “reinforce the values” and “employee a boundary system when actions are inconsistent with the code of conduct” for the purpose of early detection. Tyco provides a good example after its scandal, by initiating “mandatory annual compliance training for all its employees worldwide” and creating the Tyco Guide to Ethical Conduct to familiarize employees with company expectations and help them make ethical decisions. As tips is the most useful method for internal and external sources to detect frauds, the whistleblower hotline should be well communicated with encouragement on reporting any suspicious activity. In addition, to improve the effectiveness of the compliance program and code of conducts, Hollate should implement management monitoring and evaluation on a regular
Having a code of ethics leads to improved employee behavior, which is a huge part of culture for a standard company. Because employees are the people who create value for the company, in which way, they need to have honest and candid altitudes to the company. Having a code of ethic is a useful tool to manage an organization’s values, responsibilities, and ethical duties. To make the codes work, companies must put the code of conduct into the business so that employees know how it applies to them. The code is also a way for employees to get advice about ethical problems or concerns. “According to the 2009 National Business Ethics Survey, eighty-nine percent of those polled felt management adequately discussed the importance of ethical conduct. Similarly, 2008-2009 Integrity Survey, published by KPMG Forensic, it was found that ethics programs, including codes of conduct, had a strong impact on how employees felt. Ninety percent of those surveyed who worked in companies with a code of conduct felt they were motivated to do the right thing. This compares with just 43 percent of people who work in companies without strong codes of conduct.” (NCARB) The code of conduct plays an important role in the business no matter
As a law enforcement officer, my fundamental duty is to serve mankind; to safeguard lives and property; to protect the innocent against deception, the weak against oppression or intimidation, and the peaceful against violence or disorder; and to respect the constitutional rights of all men to liberty, equality and justice.
Recently, three individuals were awarded $170 million for helping investigators gather a record $16.65 billion penalty against Bank of America. Based on their action of inflating the value of mortgage properties and selling defective loans to investors. By influencing the market falsely is unethical and wrong. That is also why their punishment was so harsh. Firms today warn their managers and employees that failing to report unethical behavior and violations by others, could get them fired.