Financial and Banking Institutions

6081 Words24 Pages
Financial and Banking Institutions Abstract Ethics are regarded as principles guiding organizational internal conduct as well as the organization's relationship with clients, partners as well as shareholders. On the same note, core values are often summarized in the mission statement or in the company's statement of core values. In line with this, banks are required to have an ethical base and business decisions should not take place within the framework of 'anything goes'. As a general principle, customers and investors will invest their money after ascertaining ethical products and services from ethical companies. As banks operate in a broad environment in which they have to respond selectively to social, political, economic and customer issues, they are at the same time obliged to satisfy the expectations of their shareholders and employees. It is therefore essential that a collective statement of standards for personal and corporate behavior be subscribed by all persons in the banking industry. Based on this, the paper highlights several banking corporate values, challenges and gives a real example of insider trading and its purported effect on the industry. Corporate Value and Code of Conduct There are several codes of conducts that have been unveiled by financial institution with the aim of developing and promoting high ethical and professional standards. In this regard, banks are obligated to act in a manner that safeguards public interests and when they fail
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