Banking: an Ethical Dilemma?
Tutor Name: David Pearson
Module Code: BFE0012
Introduction to Financial Services
By Martin Chance
U1065521
Deadline: 8/04/2011
Assignment:
Banking: An Ethical Dilemma?
Introduction
In this report, I plan to discuss the question Banking: An Ethical Dilemma? Within this is I will discuss ethical dilemmas in association with banking. I will firstly start by giving definitions of what is meant by the terms: Banking, Ethics, and Dilemma.
From here, I will go on to identify what banks are and what the roles and importance are for the economy. Next, I will go on to explain banking operations and with this identification, I plan to then discuss the ethical dilemmas and show my opinion on the question ‘Banking: An Ethical Dilemma?’
I will then discuss any other issues unrelated to ethical dilemmas within the banking sector and with this; I plan to use references and facts to support my argument on the subject.
Finally, I will identify my finding regarding the dilemma and try to conclude on whether banking is ethical.
Main Body
Firstly, ‘Banking’ can be defined as one of the key drivers of the economy. Banking provides a safe place to save excess cash, known as deposits. It also supplies liquidity to the economy by loaning this money out to help businesses grow and to allow consumers to purchase homes, cars and consumer products. Banks primarily make money by charging higher interest rates on their loans than they pay for deposits. (http://useconomy.about.com/od/glossary/g/Banking.htm)
‘Ethics’ comes in many forms but can primarily be defined as the code or rules of moral principles that are set standards of good or bad, or right or wrong decisions, in personal conduct and therefore is a guide to the behaviour that is morally acceptable from a person or within a group or an organisation. Ethics effect moral decision made by people, and its main concern is what is good and though to be best for society. Siddiqui (2010)
With this definition of ethics, ethical
Module Code: BFE0012
Introduction to Financial Services
By Martin Chance
U1065521
Deadline: 8/04/2011
Assignment:
Banking: An Ethical Dilemma?
Introduction
In this report, I plan to discuss the question Banking: An Ethical Dilemma? Within this is I will discuss ethical dilemmas in association with banking. I will firstly start by giving definitions of what is meant by the terms: Banking, Ethics, and Dilemma.
From here, I will go on to identify what banks are and what the roles and importance are for the economy. Next, I will go on to explain banking operations and with this identification, I plan to then discuss the ethical dilemmas and show my opinion on the question ‘Banking: An Ethical Dilemma?’
I will then discuss any other issues unrelated to ethical dilemmas within the banking sector and with this; I plan to use references and facts to support my argument on the subject.
Finally, I will identify my finding regarding the dilemma and try to conclude on whether banking is ethical.
Main Body
Firstly, ‘Banking’ can be defined as one of the key drivers of the economy. Banking provides a safe place to save excess cash, known as deposits. It also supplies liquidity to the economy by loaning this money out to help businesses grow and to allow consumers to purchase homes, cars and consumer products. Banks primarily make money by charging higher interest rates on their loans than they pay for deposits. (http://useconomy.about.com/od/glossary/g/Banking.htm)
‘Ethics’ comes in many forms but can primarily be defined as the code or rules of moral principles that are set standards of good or bad, or right or wrong decisions, in personal conduct and therefore is a guide to the behaviour that is morally acceptable from a person or within a group or an organisation. Ethics effect moral decision made by people, and its main concern is what is good and though to be best for society. Siddiqui (2010)
With this definition of ethics, ethical
Bibliography: * About.com (2010) Banking. [online] Available at http://useconomy.about.com/od/glossary/g/Banking.htm [Accessed 1st April 2011] * Siddiqui, K. (2010) Lecture Hand-outs 6 - 8. * The Free Dictionary (2010) Dilemma. [online] Available at http://www.thefreedictionary.com/dilemma [Accessed 17th March 2011] * Blurtit (2010) What is the importance of the banks. [online] Available at http://www.blurtit.com/q197532.html [Accessed 18th March 2011] * Schermerhon, J.R. (2005) Management 8th ed. New York. John Wiley and Sons Inc. * Boatright, J.R (2008) Ethics in Finance. 2nd ed. Oxford. Blackwell Publishing. * Boartright. J.R (2000) Ethics and the conduct of business. 3rd ed. New Jersey. Prentice Hall, Inc. * Parkin, M., Powell, M., & Matthews, K. (2005) Economics 6th ed. London. Pearson Education Limited. * Co-operative (2011) Why we have ethical polices [online] Available at http://www.goodwithmoney.co.uk/why-do-we-need-ethical-policies/ [Accessed 6th April 2011} * Bank of England (2011) About the Bank [online] Available at http://www.bankofengland.co.uk/about/index.htm [Accessed 23rd March 2011]