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Principles & Practices of Banking


Friends, I am trying to update what I could find on net as per the given topics. Exact content on the topic can be studied from the Taxmann book "Ethics in Banking" by IIBF

Ethical Behavior at the Workplace

What does it mean to be unprincipled in the workplace? It may comprise taking individual phone calls during your duty time; declaring that the "check is in the mail," when it is still in the making; and even stealing office supplies for personal use.

Organizations typically create an ethical standards’ code or a manual is handed over when a new employee joins, which usually lists the rules and strategies which needs to be followed at all times.

Many problems prevent business people from being totally ethical, consistent, and fair. Ethics is a lively issue and occasionally it is difficult to decide at the specific moment what is considered ethical and what is not.

Ethical Lapses and Organizational Culture
Business ethics comprises human abilities of, and it does not offer the good qualities. So, if a businessman is overwhelmed, there is a chance that ethical rules will be abnormal. It is known as "ethical lapse," which is a short-term and quite rare occurrence.

Ethics at an individual level may seem to involve only the individual but it is a holistic process. There may be high pressure from co-workers, managers, or any other constituent of business culture to be unethical.

Basic Attributes of Ethical Workers
To be moral in the workplace, the workers must have some common attributes. The most powerful attributes are the resulting −

Dedication
Dedication is one of the most significant qualities of an ethical worker. Companies do seek consequences, but most companies look for an truthful effort from employees who can be considered a “natural” at the job. When an employee joins the workforce, he/she is agreeing to offer the best for helping the company to flourish.

Integrity
Integrity, or showing truthful behavior at all times, is a very significant attribute. Honesty might mean, being honest in reporting or being transparent while reporting cash transactions.

Accountability
Accountability worth to be responsible towards the time and duty during working hours. It also means tolerant responsibility, gathering yourself and willingly working towards an acceptable resolution. Taking initiative and being punctual also comes under this purview.

Collaboration
Teamwork and collaboration are appreciated attributes. As greatest companies believe that if confidence is high and everyone co-works, success will follow. So, it is important for employees to be team players.

Conduct
Employee conduct is a exact significant value in ethics. Workers must treat others with respect, and show suitable behavior. Wearing proper attire, using fine language and conducting them with professionalism are part of the job.

Being a Better Worker
Understanding how to be a healthier person in the workplace is a good starting point for a commitment to always doing the right thing.

Trusting Relationships
It is vital to build trust in office relationships. By letting people to open up, share info and feel relaxed in communicating are signs of a trustworthy employee. Morality, fairness and avoiding rumors are some basic qualities.

Team Cohesiveness
The ethical promises of workers have a optimistic effect on team and section performance apart from enhancing individual performance. An ethical worker is a better team player, who continuously makes positive aids for teams and never hinders the group progress.

Value to Employers
Trust in their workers is a very significant excellence of companies. An unethical employee can drive entire company in legal trouble, or it can destroy the hard-earned reputation. Ethical employees working for any company are the employees who adhere to ethics policies and use ethical reasoning in making decisions.

Personal Wellness
Ethical employees continuously raise value of an employer in public domain. Unethical acts can weigh people down with guilt and paranoia, making them hostile and fearful. Workers who spread unethical rumors or lies about others can have a paranoia as they try to remember which lies they told to whom and when.

Core Values
According to Martin Seligman, some core good values influence ethical behavior and appear to have universal appeal. These are −

Wisdom and Knowledge
The aptitude to gather information and change it to something valuable is a great quality. Wisdom is exploiting one’s knowledge to interpret information and being knowledgeable to produce wise decisions. A prerequisite to be knowledgeable is knowing what to do and being able to differentiate between the right and wrong.

Self-Control
It is significant to have the aptitude to avoid unethical temptations. The choice to take the ethical path needs sufficient commitment to the value of good ethics. Ethical people usually say “no” to the individual gain if it is irrelevant to institutional benefit and goodwill.

Justice and Fair Guidance
Fair action of people is significant. Justice is helped when a fair return is increased in return for the energy and effort expended. Certain persons give special treatment without regard to objective criteria by which to judge fairness.

Transcendence
It is the credit of to some degree beyond oneself more permanent and powerful than the self. When one lacks perfection, he may tend towards self-absorption. Leaders driven by self-interest and the exercise of personal power have limited effectiveness and authenticity.

Love and Kindness
The appearance of love and kindness is all the time productive. Research shows that there are different types of “love.” In an organizational context, love means intense positive reaction to co-workers, groups and/or situations. An organization “with heart” allows love, compassion and kindness among and between people.

Courage and Integrity
It is vital to have the bravery to act morally and with honesty. These values let us choose right from wrong and acting consequently. They urge one to act in the right manner without seeing personal consequences, even when it is tough and needs kindness.
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