Ethics is often defined as the rules of conduct recognized in respect to a particular class of human actions or a particular group or culture (external). Morality is more internal, referring to personal beliefs about right and wrong.

Insider Trading involves trading in a public company's stock by someone who has non-public, material information about that stock. It is illegal and unethical.

The POSH Act defines sexual harassment to include unwelcome physical contact, sexually colored remarks, showing pornography, or any other unwelcome physical, verbal or non-verbal conduct of sexual nature.

Whistleblowing is the act of drawing attention to perceived wrongdoing, misconduct, corruption, fraud, or unethical activity within a public or private organization. The policy protects them from retaliation.

An ethical dilemma arises when values conflict (e.g., Loyalty to a friend vs. Truthfulness to the employer). There is often no single "perfect" solution.

Corporate Governance focuses on ethical conduct, transparency, accountability, and fairness to all stakeholders. While profit is a goal, "at any cost" (ignoring ethics) violates governance principles.

Conflict of interest creates a risk that professional judgment or actions will be biased by a secondary interest (e.g., a loan officer approving a loan for their own relative).

BCSBI was set up to ensure that the banking system provides fair and transparent treatment to its customers. It issued codes setting minimum standards of banking practices.

The Golden Rule is a principle of treating others as one wants to be treated. It is a common maxim found in many religions and ethical systems.

Integrity involves honesty and consistency of character. It implies acting according to one's values regardless of the circumstances or lack of supervision.

Window dressing involves manipulating financial statements (e.g., temporarily boosting deposits at year-end) to make the company look better performing than it actually is. This violates the principle of transparency.

Work ethic is a value based on hard work and diligence. It includes being reliable, showing initiative, and maintaining high standards of quality.

Utilitarianism (associated with Jeremy Bentham and John Stuart Mill) is a consequentialist theory. It suggests that the moral worth of an action is determined by its contribution to overall utility (happiness/welfare).

A fiduciary relationship is one of trust, where one party (the banker) is duty-bound to act in the best interest of the other party (the customer), especially when managing their funds or giving advice.

Deontology (associated with Immanuel Kant) focuses on moral duties and rules. It argues that some acts are inherently right or wrong, regardless of their consequences.

The Chinese Wall policy is critical to manage conflicts of interest. It ensures that sensitive information obtained by one department does not leak to another department that could use it for unfair trading or advice.

Section 135 mandates that companies with a certain net worth, turnover, or profit must spend at least 2% of their average net profits of the immediately preceding three financial years on CSR activities.

The code ensures transparency in lending. It requires banks to provide comprehensive information about fees, charges, and terms, and to communicate reasons for loan rejection to avoid discrimination.

Moonlighting raises ethical concerns regarding loyalty, conflict of interest, and misuse of company time/resources. Many employment contracts prohibit it.

Virtue ethics emphasizes the development of virtuous character traits (like courage, honesty, wisdom). It asks "What sort of person should I be?" rather than "What should I do?"

Mis-selling is a major ethical issue where employees prioritize their sales targets or commissions over the customer's best interest (e.g., selling a long-term insurance policy to an elderly person who needs liquidity).

TBL suggests that companies should focus on social responsibility (People) and environmental sustainability (Planet) in addition to their economic performance (Profit).

Accepting significant gifts can create a sense of obligation in the employee towards the customer, leading to biased decisions (like approving a risky loan) and potential corruption.

Law provides the "floor" (minimum standards) of conduct enforced by the state. Ethics often sets a higher standard ("ceiling"). Something can be legal but unethical (e.g., adultery, breaking a promise), or illegal but ethical (e.g., breaking an unjust law).

Ethically, bankers have a duty to society to ensure their platforms are not exploited to harm the public or the nation. Negligence in KYC can facilitate crime.

Unlike Shareholder Theory (Friedman) which focuses on profit for owners, Stakeholder Theory (Freeman) argues that a business has a responsibility to all groups that have a stake in its operations.

To ensure sensitivity and fairness in handling complaints of sexual harassment against women, the Act mandates that the IC must be headed by a senior woman employee.

Banks have an implied contract of secrecy with their customers (Tournier's Case). Revealing information without consent or legal compulsion is a breach of trust and ethics.

For example, Courage is the golden mean between Cowardice (deficiency) and Rashness (excess). Ethical behavior is about balance.

Values are personal beliefs. Ethics are often external standards provided by institutions, groups, or culture to which an individual belongs (e.g., legal ethics, medical ethics).

It is an unethical practice where accountants use their knowledge of accounting rules to manipulate the figures reported in the accounts of a business.

An internal grievance redressal mechanism allows employees to report unfair treatment or harassment, ensuring justice and maintaining high morale and ethics.

This is a classic conflict of interest and a breach of fiduciary duty. The bank is prioritizing its own profit over the client's interest using privileged information.

Ethics goes beyond legal compliance ("Letter of the law") to the "Spirit of the law" and moral obligations.

A Code of Ethics outlines the mission and values of the business, how professionals are supposed to approach problems, and the ethical principles based on the organization's core values.

This involves using one's authority to coerce others into unethical acts, which is a severe ethical violation.

Employees have a duty to use company assets for business purposes. Misusing them for personal gain is unethical and often illegal theft.

Benami accounts are used to hide the true identity of the beneficial owner, enabling the hiding of black money and evasion of taxes.

It is a distortion of moral vision that keeps ethical issues from coming into focus, often allowing individuals to act unethically without feeling guilty.

Reputation is a bank's most valuable asset. Unethical behavior destroys trust, leading to loss of customers and business, which is reputation risk.

The POSH Act mandates that at least one-half of the total members of the Internal Committee so nominated shall be women.

Professionalism is about conduct, behavior, and attitude. It requires possessing the necessary skills (competence) and adhering to ethical standards (integrity).

This is a new ethical challenge. If AI models are trained on biased past data (e.g., discriminating against a specific pin code or gender), the AI will replicate that bias, leading to unfair lending practices.

Confidentiality is the ethical value that directly supports the legal duty of secrecy. Without discretion, trust is broken.

Kickbacks are illegal payments made in return for a service or favor. It compromises the objectivity of the decision-maker.

Green Banking addresses the ethical obligation of businesses to protect the planet by reducing carbon footprints and funding eco-friendly projects.

Time theft occurs when an employee accepts pay for time they have not actually worked or have used for personal matters.

RBI introduced this scheme to provide a channel for employees/public to report corruption/misuse of power in Private Sector and Foreign Banks, similar to the CVC mechanism for PSBs.

From a deontological (duty) and virtue ethics perspective, respecting an employee's need for rest and family life treats them as ends in themselves, not just means to profit.

Nepotism undermines fairness and meritocracy, leading to poor organizational performance and resentment among other employees.

This code helps maintain market integrity by ensuring that those with privileged access to data do not exploit it at the expense of the general public.

Reliability and timeliness are core components of a good work ethic. Constantly being late or delaying work shows a lack of respect for the job and others.

Selling a high-risk product to a conservative investor violates the principle of suitability. Ethics demands that the product fits the customer, not just the bank's sales target.

This test relies on public scrutiny and shame. If you are uncomfortable with the public knowing your action, it is likely unethical.

Ethical competition involves competing on merit (product, service) rather than sabotage or deception. Spreading lies is unethical and potentially illegal (defamation).

Employees look to leaders for cues on acceptable behavior. If leaders act unethically, employees will follow suit, regardless of written policies.

Accountability is the willingness to accept responsibility for one's actions, decisions, and outcomes, whether good or bad.

Long-term trust and reputation are more valuable than short-term targets. Ethical banking requires putting the customer first.

True ethics is self-imposed. It involves doing the right thing because it is right, not just because it is the rule.

To ensure unbiased oversight of CSR activities, the Act mandates that the CSR Committee must include at least one Independent Director among its minimum three members.

Front Running is unethical because the broker profits at the expense of the client by stepping in front of the client's large order, which might have moved the market price.

This right reinforces the ethical and legal duty of confidentiality. Banks must secure customer data against unauthorized access and misuse.

He is weighing the consequences: the "greater good" (jobs/economic welfare) vs the harm (pollution). Utilitarianism looks at the net benefit to the maximum number of people.

Hostile work environment is a form of harassment where an employee feels unable to perform their duties due to the negative behavior of others (bullying, sexual harassment, discrimination).

The SEBI Committee on Corporate Governance constituted under the chairmanship of N.R. Narayana Murthy helped refine governance norms in India (Clause 49 of Listing Agreement).

Evergreening is a deceptive practice used to prevent a loan from being classified as NPA. It misleads stakeholders about the bank's health and eventually leads to bigger losses.

Attitudes have three components (ABC Model): Affective (Feeling), Behavioral (Action), and Cognitive (Belief/Thought). Affective deals with emotions (like/dislike).

Banks have an ethical obligation to be transparent about all costs associated with a product. Hiding charges deceives the customer and violates fair dealing norms.

Discrimination involves making unjustified distinctions between human beings based on the groups, classes, or other categories to which they are perceived to belong.

Software piracy violates the copyright of the creator (IPR). Banks must ensure all software used is legally licensed to maintain ethical standards.

"Tone at the Top" refers to the ethical atmosphere created by the leadership. If leaders demonstrate high ethical standards, it trickles down to the entire organization.

The policy emphasizes fairness, transparency, and accessibility. Customers must be informed of their rights and the mechanism to resolve disputes.

Belief: "I believe lying is risky." Value: "I value honesty." Values guide behavior and are deeply held convictions about priorities.

This prevents unauthorized access to sensitive bank data. Sharing passwords or opening suspicious emails violates security policies and ethics.

The committee oversees the implementation of the Code of Ethics, resolves dilemmas, and ensures that the organization adheres to its ethical commitments.

Using company assets (stationery, tech, funds) for personal gain without permission is unethical and constitutes theft of company property.

Exceptions to secrecy (Tournier's rules) include: 1. Compulsion of law 2. Duty to the public 3. Interest of the bank 4. Customer's consent.

While the line can be thin, the key is "Expectation of Reciprocity." If it's given to sway a business outcome, it's a bribe (unethical).

Applied Ethics examines specific controversial issues (like abortion, animal rights, corporate corruption) and uses ethical theories to resolve them.

The Government of India authorized CVC as the "Designated Agency" to receive written complaints for disclosure on any allegation of corruption or misuse of office under PIDPI Resolution.

Trading based on UPSI is the core of Insider Trading violations. It includes financial results, dividends, mergers, etc., that have not yet been made public.

Transparency prevents information asymmetry. Customers must know exactly what they are buying, including the fine print, to make informed decisions.

While some social interaction is normal, malicious rumors can destroy careers and teamwork (defamation). It violates the principle of respect for colleagues.

It suggests that "When in Rome, do as the Romans do." What is ethical in one culture (e.g., bribery as "gift giving") might be unethical in another.

It follows the letter of the law (compliance) but violates basic human rights and moral duty of care (ethics). This highlights the gap between law and ethics.

Transparency (Disclosure) and Recusal (stepping back) are the standard ethical procedures to handle conflicts of interest.

It mandates that banks must have a clearly laid out policy for redressal and compensate customers for financial loss due to the bank's deficiency.

As service providers, bankers represent their institution. Professional appearance and polite behavior build trust and confidence in customers.

Altruism is the opposite of egoism. It involves acting to benefit others, sometimes at a cost to oneself.

Transactions with related parties (relatives of directors) must be at "Arm's Length" (fair market terms) and fully disclosed to prevent conflict of interest and favoritism.

ESG is a framework used to assess the sustainability and ethical impact of a company. Investors increasingly use ESG criteria to screen investments.

Quid Pro Quo involves an authority figure making employment decisions contingent on the employee's submission to sexual advances.

RBI guidelines and the Constitution prohibit discrimination in access to banking services based on caste, creed, religion, or gender. It violates the Right to Fair Treatment.

The 3 questions are: 1. Is it legal? 2. Is it balanced? 3. How does it make me feel about myself? "Will I get caught" is a question based on fear of punishment, not ethics.

Due care involves taking reasonable steps to prevent harm. Negligence in basic security hygiene violates the duty of care towards customer data.

It measures the consistency between the organization's stated values and its actual behavior to identify areas for improvement.

It involves dishonesty (lying about contribution) and theft (stealing credit). It erodes team cohesion.

Banks are ethically and legally responsible for the conduct of their recovery agents. Harassment violates the customer's right to dignity and privacy.

Values are deep-seated beliefs shaped by early socialization (family/school) and later environment (culture/experience).

While anonymity makes investigation harder, the substance of the complaint matters. Ignoring it could allow fraud to continue. Retaliation (C) is unethical and illegal.

The Compliance Officer acts as the conscience keeper of the bank, mitigating regulatory and reputational risk.

Loyalty to the organization and ethical principles supersedes loyalty to an individual. "Following orders" is not a defense for illegal acts.

This is the "Right to Suitability." Selling inappropriate complex products violates this right (e.g., the 2008 derivatives misselling cases).

Utilitarianism is a form of Consequentialism. It holds that the "ends" determine the rightness of the "means".

Accepting valuable gifts creates a conflict of interest and resembles bribery. Refusal maintains integrity.

Independent directors are not part of the management team and have no pecuniary relationship with the company, allowing them to hold the management accountable without conflict of interest.

Employees have a duty to protect the bank's assets. Shortcuts that compromise safety are unethical and negligent.

Forced bundling exploits the customer's need for one product to sell another unwanted product. This restricts customer choice and is an unfair trade practice.

Legal ethics require a lawyer to provide the best defense for their client, regardless of personal belief in their guilt. This illustrates how professional ethics can differ from personal morality.

Excessive trading distracts from duties and may lead employees to use bank resources or information for personal gain.

When companies openly disclose information (good or bad), stakeholders (investors, customers) trust them more, reducing the cost of capital and enhancing reputation.

This is a fundamental human right and ethical principle to prevent gender-based wage discrimination.

Empowering customers with knowledge prevents fraud and helps them make better financial decisions, which is a duty of the bank.

Personal values are internal beliefs about what is right and wrong, such as honesty, courage, and kindness.

Falsifying data compromises the bank's risk management and integrity. It is fraud.

BRSR encourages companies to be accountable for their social and environmental impact, moving beyond just financial reporting.

Respect and professionalism are key to resolving workplace conflicts ethically.

This external grievance redressal mechanism ensures that customers have a recourse if the bank's internal mechanism fails.

This is a simple intuition test. If a decision causes guilt or anxiety (preventing sleep), it violates one's conscience and is likely unethical.