Discussing ethics applied to finance can become a trivial and selfjustifying task if left to the practical men, or a task with no connection to reality, if performed by philosophers. This book, however, turns out to be an exciting piece of work, useful, provocative, full of ideas and suggestions, as experts in ethics discuss specific issues related to the financial institutions and markets, with the men and women that carry out the daily practice in such institutions and markets, as well as with scholars of economics and finance. Thus, the book covers everything from daily subjects to issues of a deeper nature, using a simple and clear language with solid foundations in economics and ethics, from a necessarily plural and open perspective.
The Global Financial Crisis is acknowledged to be the most severe economic downturn since the 1930s, and one that is unique in its underlying causes, its scope, and its wider social, political and economic implications. This volume explores some of the ethical issues that it has raised.
The Ethics of Banking analyzes the systemic and the ethical mistakes that led to the crisis. It keeps the middle ground between excusing all failures by the argument of a systemic crisis not to be taken responsibility for by the financial managers and the moralistic reproach that only moral failure is at the origin of the crisis. It investigates the role of speculation in the formation of the crisis and distinguishes between productive speculation for hedging and for securing market liquidity on the one hand, and unproductive and even detrimental hyper-speculation going far beyond of the degree of speculation that is necessary in a developed economy for the liquidity of financial markets, on the other hand. Hyper-speculation has increased the risks of the financial system and is still doing so.
For undergraduate/graduate-level courses in Business Ethics, Business Policy, Business/Government Relations. This book offers an interdisciplinary approach to many of the practical ethical issues that business students and business persons must face in their work.
The global financial crisis evidenced the corrosive effects of unethical behaviour upon the banking industry. The recurrence of misbehaviour in the financial sector, including fraud and manipulations of market indices, suggests the need to establish a banking culture that conforms to the highest standards of ethical and professional behaviour. This Research Handbook on Law and Ethics in Banking and Finance focuses on the role that law should play and the effectiveness of newly introduced regulations and supervisory actions as a driver for ethical conduct so as to reconnect the interests of bankers and financiers with the interests of society.
A groundbreaking exploration of the critical ethical issues in financial theory and practice Compiled by volume editor John Boatright, Finance Ethics consists of contributions from scholars from many different finance disciplines. It covers key issues in financial markets, financial services, financial management, and finance theory, and includes chapters on market regulation, due diligence, reputational risk, insider trading, derivative contracts, hedge funds, mutual and pension funds, insurance, socially responsible investing, microfinance, earnings management, risk management, bankruptcy, executive compensation, hostile takeovers, and boards of directors. Special attention is given to fairness in markets and the delivery of financial services, and to the duties of fiduciaries and agents Rigorous analysis of the topics covered provides essential information and practical guidance for practitioners in finance as well as for students and academics with an interest in finance ethics Ethics in Finance skillfully explains the need for ethics in the personal conduct of finance professionals and the operation of financial markets and institutions.
The third edition of Ethics in Finance presents an authoritative and wide-ranging examination of the major ethical issues in finance. This new edition has been expanded and thoroughly updated with extensive coverage of the recent financial crisis and the very latest developments within the financial world. Substantially updated new edition with nearly 40% new material, including sections on credit cards, mortgage lending, microfinance, risk management, derivatives, and securitization Includes coverage and references to the recent financial crisis and the very latest developments within the financial world Focuses on the practical issues that confront finance professionals, policy makers, and consumers of financial services Cites examples of the scandals that have shaken public confidence in Wall Street and world financial markets Includes numerous examples throughout to illustrate the concepts and issues described within the text
What are the economic and moral connections between Wall Street and the overall economy? This book chronicles the transformation of Wall Street's business model from serving clients to proprietary trading and explains how this shift undermined the ethical foundations of the modern financial industry.
Ethics and Finance: An Introduction provides a comprehensive and accessible introduction to the ethical issues raised by modern finance. Drawing carefully on ethical theory and with frequent use of case studies, it includes an analysis of the global financial system and its regulation and control, as well as a detailed analysis of the financial crisis. Chapters on specific areas of finance practice cover all the major financial scandals of recent times, from mis-selling to market manipulation and from insider trading to bankers' bonuses, as well as much more positive developments. From micro finance to derivatives trading, the book provides a careful and balanced treatment designed to help finance students and practitioners approach this sensitive topic in a thoughtful and constructive way. No prior knowledge of ethics or finance is required, and the book will be invaluable to students, finance teachers, practitioners and regulators.
This book explores the vital role of ethics in the banking sector, emphasising the necessity of integrity, transparency, and accountability in every aspect of banking operations. Drawing inspiration from the timeless wisdom of Thiruvalluvar's couplet from Thirukkural—"Ethics is the road to wealth and goodwill"—this book underscores the enduring relevance of ethical principles in business and financial services. It comprehensively examines how ethics can foster trust, enhance reputation, and drive sustainable growth in financial institutions. This book is helpful for practising bankers, financial professionals, and institutions seeking a deeper understanding of ethics in banking. The Present Publication is the 2024 Edition, revised and updated by Mr Atul Kumar | Former Chief Ethics Officer – SBI. Taxmann exclusively publishes this book for the Indian Institute of Banking and Finance with the following noteworthy features: • [Importance of Ethics in Banking] The book discusses the critical role of ethics in banking, highlighting how ethical behaviour forms the cornerstone of public trust and institutional reputation. It outlines how ethics drive sustainable growth and stability, emphasising that honest, fair, and transparent practices are not just regulatory requirements but also business imperatives • [Application of Ethical Principles] It covers applying ethical principles at various operational levels—individual, organisational, and market. It discusses the ethical responsibilities of banking professionals and institutions, including the importance of ethical leadership, corporate governance, and adherence to social responsibility norms. It illustrates these principles with real-world examples, making the content both relevant and actionable • [Contemporary Ethical Issues] This book addresses modern challenges in banking ethics, such as integrating ESG (Environmental, Social, and Governance) criteria, the ethical implications of digital transformation, data privacy concerns, and the latest regulatory changes, including Fintech and the Digital India Act. It analyses how banks can navigate these challenges while maintaining ethical standards • [Case Studies and Practical Insights] The book includes a wide array of case studies that provide practical insights into ethical dilemmas faced by banks and financial institutions. From high-profile cases like the Equifax Data Breach and the LIBOR Scandal to scenarios involving workplace ethics and regulatory compliance, these case studies provide valuable lessons on navigating ethical challenges in the banking industry The book adopts a modular approach, ensuring a coherent and logical flow of content across its four modules, which are as follows: • Module A – Understanding Ethics o Overview of Ethics – Provides a comprehensive introduction to ethics, covering its evolution, dimensions, and relevance in human actions, governance, and business. It emphasises the connection between ethics, law, and religion, highlighting how these elements collectively contribute to a well-governed and ethical banking environment o Ethics in Business and Banking – Provides an integrated perspective on business ethics and banking, discussing the foundational role of trust in finance and analysing ethical theories and their applications in banking scenarios. This module also includes significant case studies, such as the Enron scandal and the lessons from global financial crises o Learning and Application – Includes practical exercises like 'Check Your Progress' and 'Exercise Your Ethics Muscle,' along with real-world case studies such as the Equifax Data Breach and dilemmas in ethical decision-making • Module B – Different Operational Levels of Ethics in Banking o Individual Ethics – Focuses on personal integrity, values, and moral reasoning at the individual level. It discusses ethical dilemmas and the framework for making ethical decisions, providing insights into how personal ethics influence professional conduct o Organisational Ethics – Examines ethics at the organisational level, covering customer relationships, marketing practices, employee conduct, and corporate social responsibility (CSR). It emphasises the importance of ethical leadership, fostering an ethical culture, and aligning business practices with societal expectations o Market-Level Ethics – Discusses the broader ethical dimensions of banking, including corporate governance, environmental ethics, and the ethical challenges of globalisation. It addresses how banks can integrate ESG factors into their operations to enhance sustainability and public trust o Practical Insights – Real-world examples, such as the LIBOR Scandal and insider trading, illustrate the operational risks and ethical challenges faced by banks, providing valuable guidance on managing these issues • Module C – Workplace Ethics and an Ethical Organisation o Workplace Ethics – Explores the dynamics of ethical behaviour in the workplace, including the benefits of ethical practices and the consequences of lapses. It covers topics like whistleblowing, ethical training, and the impact of organisational culture on ethical decision-making o Building Ethical Organisations – Provides strategies for building ethical organisations, including developing ethics programs, the role of top management and board members in ethical leadership, and the establishment of ethics committees. It discusses the ethics-performance linkage and the balance between short-term objectives and long-term ethical goals o Changing Dynamics – Examines the evolving nature of banking ethics in the digital age, addressing issues such as data privacy, cybersecurity, and the ethical implications of technological advancements. It includes discussions on digital trust and the integration of ethics into digital banking o Case Studies – Cases like Wells Fargo's unethical practices and the role of whistleblowing in banks provide contemporary examples of ethical challenges in the workplace • Module D – Wider Aspects of Ethics in Practice o Corporate Governance and Ethical Dimensions – Highlights the importance of ethics in corporate governance, discussing principles of good governance, the institutional framework, and the role of ethical leadership in preventing corporate misconduct. It addresses global standards and the impact of governance on financial stability and public trust o Environmental Ethics and Globalisation – Explores the ethical responsibilities of banks in environmental management and sustainable finance. It covers critical topics like climate change, the transition to a low-carbon economy, and the role of banks in promoting environmental stewardship o Corruption | Bribery | White-Collar Crime – Provides an in-depth analysis of corruption, bribery, and white-collar crime, discussing their impact on the banking sector and strategies for combating these issues through the promotion of ethical leadership and accountability o A Holistic Approach to Ethics – Concludes with a holistic view of ethics, integrating various perspectives and providing a roadmap for fostering an ethical culture in banking. It emphasises the importance of accountability, the role of ethical norms, and the generational differences in ethical perspectives o Practical Case Studies – Includes diverse case studies on corruption, environmental ethics, and corporate governance, such as the Bhopal Disaster and the challenges of globalisation, to illustrate the broader implications of ethical practices in banking
