Ethics in Banking Essay - 1345 Words

Banking ethics are the moral or ethical principles that certain banks choose to abide by. There is not a universal code of ethical conduct, but the banks that vaunt their ethical credentials evaluate the ethical standing of potential investors and partners. Also, these banks choose the companies that they in turn invest in with their ethical policy in mind. The number of ethical questions that the banking industry faces are many and multifaceted. Full service relationships with customers are a thing of the past while profitability, and its byproduct corporate greed, has become the main goal. Banking ethics and profitability are not mutually exclusive, but being an ethical bank does sometimes mean that they maintain their moral rigor†¦show more content†¦Can we blame the retail branch employees or even the retail banking industry? This change in mentality is just merely an adaptation necessary for survival, which can be explained as â€Å"survival of the fittest† . In order to survive banks have been required to change from traditional money handlers to aggressive sales oriented employees. The increase in competitiveness among all banks has ballooned so much that these banks are willing to do anything to retain or add a new customer. The strategy of putting customers in high pressure sales situations is not unethical. However, the line is drawn when branch employees are told to sell a certain product so the branch will meet its monthly/quarterly goal. With this type of leadership, you are enabling employees to sell products to customers that they most likely did not need in the first place and may not be qualified for. These unethical tendencies led customers to believe that they needed a product that was only sold for the company’s benefit. These situations only confirm that the banking industry is putting their profit interests above the well-being of the customers that they provide services for. When the bank is acting in their own self interest they are taking on an egoistic role. They have an excessive sense of self importance. An egoist will put profit at the top of the list of importance and that is exactly what the banksShow MoreRelatedEthics And The Global Banking And Business1876 Words   |  8 PagesWhat is ethics and why it is important in global banking and business? Ethics has been a topic of discussion for many years between scholars, professors, students, companies, and many other living in this century. According to a Santa Clara University business student, ethics could not be defined the same by individuals. Ethics cannot be â€Å"pinned down† to a certain definition, meaning that people perceive the word â€Å"ethical† in many different ranges. 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