Ethics has been a common topic in the news recently, and ethical issues have been at the forefront of companies and banks for several years. Sometimes it may seem like the community has grown tired of this ongoing ethical issues, but it is still likely that more issues involving ethics mean that there is still more to learn from the events involving ethical questions. While banks do not have a monopoly on these matters, there are often higher built-in behavior expectations bankers who make ethical lapses of slightly more visible and controversial.
Whenever individuals are responsible for managing a large amount of money (the bankers are clearly), there may be a temptation to take advantage of the situation. In many cases, applicable laws and regulations that prescribe what is legal, and ethical guidelines are often less formal and rigid. In fact, this lack of specificity, it often leads to ethical problems in the first place. If a bank employee finds himself asking questions like the following, we should not be surprised if it says is later called teaching moment
- Should I tell anyone about this [19459006?]
- Is this really wrong?
- Can I get into trouble by doing this?
- Is this illegal or just unethical?
final hypothetical question (Is it illegal or just unethical?) Includes concerns the distinction made by some when facing a gray area that is apparently legal but still questionable. It is true that in some cases moral turpitude can also be viewed as illegal, but many unethical acts may be technically legal. Within many companies and banks, it is not unusual for there to be a protocol covering many cases by law but outside the company and the behavior of banks. Character quality are likely to affect how people act in any number of situations that are not spelled out in terms of what to do and what not to do. A proper definition comes from a recent scandal suggests that the character is what you do when no one is watching. It can be both good and bad morals, and one way to determine which is the dominant standard is to monitor what people do when they do not think that someone is looking over their shoulder.
There have been several events banking in the past 25 years that are usually described in terms of legal and moral turpitude of many individuals and banks. Such mass ethical lapses are a special category that deserve further analysis and introspection than can be provided here. One of the best studies of ethics and other details of the savings and loan banking crisis was written by William Black has the following title:
- The Best Way to rob a bank is to own One: How corporate executives and politicians looted the S & L Industry
The savings and loan element involved many examples of bank employees take advantage of a weak regulatory environment, and the factors behind the 2008 banking crisis had some striking similarities . There are many moments of teaching that can hopefully help improve future ethics environment for companies and banks.