module six

Question 1

Impact of unprofessional and unethical behaviour

Answer 1

undermines the trust in financial organisations and can trigger instability in the economy

Question 2

Chartered bankers strategic purpose

Answer 2

a view to rebuild trust and confidence in banks

Question 3

Rules-based code

Answer 3

defines the rules expected to be followed leaving little room for misunderstanding.

Question 4

Principles-based code

Answer 4

They are more flexible meaning professional judgement is needed.

Question 5

The code

Answer 5

expected to work in a fair and honest manner if breaches the code they could be subject to disciplinary action

Question 6

Principle 1

Answer 6

Customers - treating with respect includes being polite in all forms of communication, also includes being sensitive to circumstances and specific needs
Colleagues - disrespectful behaviour includes bullying and harassment as well as treating colleagues unfairly or discriminating against them
Counterparties - respecting counterparties also involves not deceiving them. Also, entering a manipulative or exploitative financial relationship with anyone would be disrespectful.
Respect - treating people respectfully not only face to face but behind their backs too as well as challenging other colleagues on their behaviours.
Integrity - maintaining consistently high moral standards.

Question 7

Principle 2

Answer 7

Duty to be competent - an ethical duty because customers and counterparties have a right to expect competency.
Taking responsibility - failing to act responsibly is unethical because if things go wrong it effects everyone. It’s important everyone’s responsible in their actions and advice but also take responsibility for their implications for others especially if a mistake is made.
Being accountable - your responsible for the things that happen as a result of your actions.

Question 8

Principle 3

Answer 8

Compliance - requirement bankers are open and cooperative with regulators providing with any information they require.
Openness - not only must they never mislead the regulators, they must cooperate in a genuine spirit of openness.

Question 9

Principle 4

Answer 9

Identify customers interests - deciding what’s in a customer’s interest involves listening to their description of their needs and circumstances and applying expertise to whatever products/services they may be considering.
Apply judgment - apply judgement and read between the lines of what the customers saying to some extent.
Pay due regard - don’t do something unethical because it’s in your customers interest as it would be paying their interests more regards than due.
Be impartial and fair - includes not allowing personal interests to get in the way of the customers interests.

Question 10

Principle 5

Answer 10

Ensure that behaviour doesn’t get in the way of the good and fair operation of markets.

Question 11

Principle 6

Answer 11

Honesty - dishonest behaviours include intentionally deceiving or misleading people as well as including cheating behaviours.
Trustworthiness - crucial to the success of banking so customers can trust banks.
Impartiality - conflict of interest arises when a personal interest conflicts with a legitimate duty. Conflicts of interest threaten impartiality and ability to fulfil duties of your role.

Question 12

Principle 7

Answer 12

Confidentiality - confidential information may not always be marked as confidential. There may be circumstances someone may ask you to keep information confidential however you have no duty to do so as in some circumstances a breach of confidentiality may be justified.

Question 13

Ethics

Answer 13

Encourage thoughts around living a good life, rights and responsibilities and moral decisions.

Question 14

Moral absolutism

Answer 14

The view that some things are always right and some things are always wrong.

Question 15

Moral relativism

Answer 15

Says that what is right or wrong is what the majority of people view and is related to the particular place and time.

Question 16

Ethics based on consequences

Answer 16

Utilitarianism - a theory based on consequences. ethically right choice is the one producing the most happiness for the largest number of people.

Question 17

An objection to the theory

Answer 17

Never know how things are going to turn out meaning it’s difficult to judge the rightness or wrongness however its argues we should judge the result on the expected consequences

Question 18

Ethics based on duty

Answer 18

Deontological - something that is necessary. Distinctive as actions are made right by something other than consequences. Only an action done with good intentions is a right action regardless of the consequences.

Question 19

Virtue ethics

Answer 19

trait or quality considered morally good.

Question 20

Ethical dilemmas

Answer 20

instances of unprofessional and unethical behaviour can compromise ideas of what’s ethical and professional.

Question 21

Organisation’s values

Answer 21

includes ethical values guiding the way the business is done and tells us what the organisation thinks is acceptable.

Question 22

Ethics policy

Answer 22

organisation’s commitment to high ethical standards

Question 23

Code of ethics

Answer 23

document showing the organisations values and commitments to stakeholders setting out behaviours expected of employees.

Question 24

Code of conduct

Answer 24

tell employees about rule and regulations to follow.

Question 25

Moral sensitivity

Answer 25

being aware of how actions affect other people, being aware of the different courses of action and how each of these could affect people.

Question 26

Moral judgement

Answer 26

about judging which option is the most morally justifiable.

Question 27

Moral motivation

Answer 27

importance we place n moral values compared to others. Could be a problem if were not sufficiently motivated to put moral values higher up on our priority list.

Question 28

Moral character

Answer 28

about having courage, conviction and confidence as well as resilient and persistent.

Question 29

Whistleblowing

Answer 29

a whistleblower doesn’t need to be currently employed by the organisation with the problem needing to be significant and the report made to someone outside the normal channels, someone in the position to take action.

Question 30

Internal whistleblowing

Answer 30

when information is kept within the organisation but passed on outside normal channels.

Question 31

External whistleblowing

Answer 31

when information is passed outside the organisation. It could be a professional body, an independent agency, or to the press.

Question 32

What’s considered whistleblowing?

Answer 32

when someone raises a concern about danger or illegality that affects others. Also, they rarely have a personal interest in the outcome and aren’t directly affected.

Question 33

Customer support

Answer 33

processes and ‘chatbots’ are cheaper and more efficient than employing people to carry out certain customer support activities.

Question 34

Risk assessment

Answer 34

algorithms used to accurately predict risk of certain investments and loan applications.

Question 35

Decision making

Answer 35

algorithms are used to automatically asses the visibility of loan and mortgage applications to product an automated decision.

Question 36

Machine learning algorithms

Answer 36

algorithm that earns their way of analysing data and reaching decisions. They alter their decision making procedure based on the data given and goal assigned with little rules already in place.

Question 37

Automation and bias

Answer 37

human decision-making is bias and as humans are often prejudiced.

Question 38

Banking and big data

Answer 38

data analysed by computers to reveal patterns and trends.

Question 39

Environmental ethics

Answer 39

about the ethical relationship between human beings and the natural environmental

Question 40

Banks embedded position in wider ecosystem

Answer 40

banks don’t exist in isolation, they are part of the financial system which serves and relies on the economy.