Introduction A bank refers to a financial institution that accepts deposits and channels the money into lending activities (Lewis, 2009). Ethics refers to the principles of right and wrong that are accepted by an individual or a social group ((Lewis, 2009).) Conceptually, ethics refers to well base standards of right and wrong that prescribe what humans ought to do, usually in terms of rights, obligations, benefits to society, fairness, or specific virtues (Safakli, 2005). It’s the integrity measure, which evaluates the values, norms and rules that constitute the base for individual and social relationships, from a moral perspective (Smith and Smith, 2002). It consists of choosing the good over the bad, the right over the wrong and the fair over the unfair. It makes claims about what ought to be done or what ought not to be done (Carse, 1999). Integrity implies not merely honesty but fair dealing and truthfulness (CAJEC, 1992). In an era of sustainable economic development models there is an increased attention on sectoral compatibility, environmental protection, and professional ethics (Safakli, 2005). Analyzing the recent bank failures it can be seen that the business and professional ethics is one of the most important elements of stability in banking and the finance sector. This is because the sectors are in particular very important instruments of speedy economic growth and development. The banking plays an important role in restructuring the economy and to bring about long-term sustainable macroeconomic stability. According to Deiss (2001), the success of banks, both in short and long term depend on the trust and confidence between all the parties. Ethical value s and behaviors in banking play a very important role in crea... ... middle of paper ... ...ng than others is hardly determined. Since the standard in a bank and the banking system depends on the licensing authorities, shareholders, sponsors/directors, top management, the regulators, and the government, it follows that for ethical dilemmas in the banking sector to be managed, all stakeholders must be up and doing. It is essential for a bank to be clear about the key ethical values to which it subscribes. It then needs to ensure that the organization and the employee act in accordance with these values. It is also necessary to have policies and procedures designed to ensure Compliance with the standards specified in the code of conduct. Codes of conduct and the means to enforce them are important tools for management of ethical issues and attitude in the banking sector. However, narrow compliance-based approach towards ethics management should be avoided.
To give a description of business ethics as described by John Fraedrich, “business ethics comprises organizational principles, values, and norms that may originate from individuals, organizational statements, or from the legal system that primarily guides individual and group behavior in business” (John Fraedrich, 2017). Principles and Practices in Culture The culture in the branches of Wells Fargo that had managers who required employees to participate in this unethical behavior is more than questionable and forceful. The principles and practices of these individuals and branches may have been laid out before them in the code of conduct, and executives and Wells Fargo as a whole expect these individuals and branches to follow the principles and practices.
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).
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
Changes in the public arena's state of mind on value chains amongst the businesses dealings and the enhanced item importance have activated organizations to execute sets of accepted rules. In the past, organizations established codes of conduct for various purposes but more specifically to help the company where they work. Through the sets of accepted rules, all employees are given guidance towards the qualities, standards, and the mission essential to the company. A code of conduct helps the company in making models of ethical directives; this then oversees relationship inside the business, the customers, consumers, state experts, and even competition. Furthermore; the implicit rules serve as an instrument in staying away from negative unforeseen circumstances, and initiating organization standards established on high ethical
Most organisations begin the method of establishing organisational ethical projects by introducing codes of conducts. It helps to generate public trust and improve
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
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.
By definition, ethics refers to "a set of principles of right conduct." It is also defined as "the rules or standards governing the conduct of a person or the members of a profession," (www.thefreedictionary.com) and in business may be considered the standards governing the conduct of people in the business environment. Business ethics is the behavior that a business adheres to in its daily dealings with the world. It relies on values as a way of guiding behaviour in business.
The term “ethics” refers to an external set of rules that have been established by an institution or organization, for example, a university, and the members are expected to follow them. On the other hand, integrity refers to an individuals’ internal set of principles that guides their actions and behavior (Czimbal and Brooks n.p.). As a rule, people are usually rewarded when they follow ethical codes of conduct by an external committee or board that monitors their behavior. For a person of high integrity, the benefits are usually intrinsic. Moreover, such individuals always make the right decisions even when they are not being watched. Therefore, this feature of character is often influenced by a person’s upbringing. In
[1] Ethics is defined as “the code of moral principles and values that governs the behaviour of a person or a group with respect to what is right or wrong” (Samson and Daft, 2005, p.158)
Ethics are the set beliefs and values of an individual which they apply to circumstances relating to morality. To act in an ‘ethical’ manner, an individual must display integrity by doing what they believe to be right.
Ethics is simply doing the right thing. In the business situation ethics are the moral concept of a firm getting through it organizational duties ethically.
Ethics are moral principles or values that govern the conduct of an individual or a group.It is not a burden to bear, but a prudent and effective guide which furthers life and success. Ethics are important not only in business but in academics and society as well because it is an essential part of the foundation on which a civilized society is built.
The intensely competitive, action-oriented, profit-hungry world of investment banking can seem like a bigger-than-life place where deals are done and fortunes are made. Investment bank includes but is not limited to bringing an established company to the market, by that I mean taking company with the capabilities but not capital of expanding, and raising money through other investors or the stock market (IPO) for a commission, I chose this field because of my personal experience with my father and his company, I’ve seen him go from starting off as a cold calling broker, to running a brokerage firm, to starting a brokerage firm, all the way to having his own investment firm. I feel like I would do better with jobs where you set your own hours and work at your own pace. A lot of the work is commission based so the more your work the more you make, this would also benefit me because it would drive me to work more, money is my motivation. To be hired you will need good people and communication skills, highly analytical skills, high ability to synthesize and high creative ability. You will also need experience in modeling, valuing companies, and financial accounting.
Never have I ever climbed a mountain peak. As a child, I imagined myself conducting expeditions in deep-frozen pathways, leading amateur explorers to the top of the world, and instructing rookies in surviving harsh blizzards. Even though slightly altered, my childhood dream has been achieved. I led a team of fellow classmates, in my Strategic Management course, to the success summit of a financial competition. Over the course of a semester, I and my teammates were supposed to create and manage a company of the IT industry, in a computer-simulated environment, along with other four rival teams. I dealt with strategy and financial matters of our virtual enterprise, while my colleagues were working on marketing and manufacturing. During the four months of the exercise, I have experienced finance from various aspects: capital budgeting, through selecting favorable investment for upcoming quarters; debt management, by assessing the necessary amount and efficiency of loans; profitability analysis and dividend policy, which had been used to compile the company’s general performance index. Working in a multinational team, which included an American, a Norwegian and a Moldovan, strengthen my negotiations skills, as well as flexibility and cooperation. But above all, this experience intensified my passion for finance. Of course, a pleasant bonus was the fact that, in the end, our company’s financial performance was six times the performance of second-best team.