TEST BANK FOR BUSINESS ETHICS
QUESTIONS WITH 100% CORRECT
ANSWERS; GUARANTEED TO PASS
Welcome to Ethics for Bankers - ANS-Business ethics is a serious subject for executives, managers, and
front-line employees. All bank employees are expected to make good decisions every day based on the
organization's values and contemporary standards in business ethics.
This module will help you understand the importance of recognizing an ethical dilemma and then acting
accordingly. It will also assist banks in making sound decisions based on the principles of business ethics.
Learning Objectives - ANS-By the end of this module, you should be able to:
- Explain the importance of business ethics
I- Identify the core values of banking
- Outline a process for ethical decision making
- Discuss some ethical problems banks can be confronted with
What is Business Ethics? - ANS-In simple terms, business ethics is the process of using appropriate values
when trying to make a difficult decision in the workplace.
Business ethics: In simple terms, business ethics is the process of using appropriate values when trying
to make a difficult decision in the workplace.
Business ethics:
- focuses on reasoning
- helps identify and explore options
- helps apply the correct values to decisions
The Business Case for Ethics: - ANS-There is no doubt that good ethics is good business.
Consider a review of more than 50 studies over 25 years looking at the connections between ethics and
corporate financial performance. Of these studies, 33 showed that corporate ethics improved financial
performance.
, Ethics is a Priority - ANS-Business ethics needs to be a priority in your organization. Why?
- The social contract between business and society has changed. There are greater ethical expectations
of business today than in the past.
- This is especially true in the banking sector.
The perception of ethical behavior helps attract and retain customers.
- Today's complex business climate has caused an increase in the number of ethical dilemmas facing
business people.
- The nature of the ethical dilemmas facing business people has become more serious.
- Organizations perceived as ethical have an easier time retaining quality employees.
The Legal Framework for Ethics: - ANS-Ethics in the banking industry exists within a legal and regulatory
framework. Certain ethical standards in banking have been written into law.
For example:
- Principles of fair lending have become law in the form of the Equal Credit Opportunity Act (ECOA) and
the Fair Housing Act (FHA).
- Principles of honesty and integrity have become law in the form of the Truth-In-Lending Act (TILA) and
the Truth-In-Savings Act (TISA).
Laws vs. Ethics - ANS-While it is true that ethics informs much of the regulation in the financial services
sector, it is important to remember that ethics and laws are not the same thing.
Laws and regulations tell us what we must do. Ethics goes further and attempts to inform what we
should do.
Check Your Understanding
Match the piece of legislation with the ethical principle it incorporates: - ANS-Legislation - Ethical
Principles
TISA - Honesty, integrity
FHA - Fairness, equality, respect
Banking Values: - ANS-In the previous section we mentioned some key pieces of legislation that are
informed by ethical principles.
In the banking industry these ethical principles are referred to as banking values or core standards:
Banks need to know:
- What values customers expect from banks
QUESTIONS WITH 100% CORRECT
ANSWERS; GUARANTEED TO PASS
Welcome to Ethics for Bankers - ANS-Business ethics is a serious subject for executives, managers, and
front-line employees. All bank employees are expected to make good decisions every day based on the
organization's values and contemporary standards in business ethics.
This module will help you understand the importance of recognizing an ethical dilemma and then acting
accordingly. It will also assist banks in making sound decisions based on the principles of business ethics.
Learning Objectives - ANS-By the end of this module, you should be able to:
- Explain the importance of business ethics
I- Identify the core values of banking
- Outline a process for ethical decision making
- Discuss some ethical problems banks can be confronted with
What is Business Ethics? - ANS-In simple terms, business ethics is the process of using appropriate values
when trying to make a difficult decision in the workplace.
Business ethics: In simple terms, business ethics is the process of using appropriate values when trying
to make a difficult decision in the workplace.
Business ethics:
- focuses on reasoning
- helps identify and explore options
- helps apply the correct values to decisions
The Business Case for Ethics: - ANS-There is no doubt that good ethics is good business.
Consider a review of more than 50 studies over 25 years looking at the connections between ethics and
corporate financial performance. Of these studies, 33 showed that corporate ethics improved financial
performance.
, Ethics is a Priority - ANS-Business ethics needs to be a priority in your organization. Why?
- The social contract between business and society has changed. There are greater ethical expectations
of business today than in the past.
- This is especially true in the banking sector.
The perception of ethical behavior helps attract and retain customers.
- Today's complex business climate has caused an increase in the number of ethical dilemmas facing
business people.
- The nature of the ethical dilemmas facing business people has become more serious.
- Organizations perceived as ethical have an easier time retaining quality employees.
The Legal Framework for Ethics: - ANS-Ethics in the banking industry exists within a legal and regulatory
framework. Certain ethical standards in banking have been written into law.
For example:
- Principles of fair lending have become law in the form of the Equal Credit Opportunity Act (ECOA) and
the Fair Housing Act (FHA).
- Principles of honesty and integrity have become law in the form of the Truth-In-Lending Act (TILA) and
the Truth-In-Savings Act (TISA).
Laws vs. Ethics - ANS-While it is true that ethics informs much of the regulation in the financial services
sector, it is important to remember that ethics and laws are not the same thing.
Laws and regulations tell us what we must do. Ethics goes further and attempts to inform what we
should do.
Check Your Understanding
Match the piece of legislation with the ethical principle it incorporates: - ANS-Legislation - Ethical
Principles
TISA - Honesty, integrity
FHA - Fairness, equality, respect
Banking Values: - ANS-In the previous section we mentioned some key pieces of legislation that are
informed by ethical principles.
In the banking industry these ethical principles are referred to as banking values or core standards:
Banks need to know:
- What values customers expect from banks
