Welcome future bankers! In this detailed guide, we cover “Ethics at Workplace – Questions (Part 1)” from Module D of Principles and Practices of Banking (PPB). This article helps you understand what ethical conduct truly means for a banker, how it is tested in JAIIB exams, and provides 20 important questions with answers.
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Why “Work Ethic and the Workplace” Matters
In modern banking, ethics form the foundation of trust and credibility. Every banker handles money, confidential information, and customer relations. A single unethical act can damage the institution’s reputation. Hence, the Indian Institute of Banking & Finance (IIBF) gives significant weightage to ethics-based questions in the PPB paper.
Key learning objectives of this chapter include:
- Understanding what constitutes ethical conduct in financial institutions
- Recognising ethical vs. unethical workplace behaviours
- Learning professional values like honesty, transparency, diligence, and fairness
- Developing awareness of whistle-blowing and ethical compliance systems
Core Concepts Explained
1. Meaning of Work Ethic
Work ethic means the moral principles and discipline that drive an individual to work responsibly, efficiently, and honestly. It reflects integrity, reliability, teamwork, and commitment to excellence.
2. Components of a Strong Work Ethic
- Accountability: Taking ownership of actions and results.
- Integrity: Honesty even when no one is watching.
- Diligence: Consistent effort to achieve objectives.
- Team Spirit: Cooperation and positive attitude toward colleagues.
- Transparency: Clarity in dealing with customers and regulators.
3. Importance of Ethical Behaviour at Workplace
- Strengthens organisational trust and public image
- Ensures regulatory compliance and avoids penalties
- Encourages fair treatment of customers and employees
- Enhances productivity and teamwork
4. Examples of Ethical Behaviour in Banking
- Maintaining customer confidentiality
- Providing truthful information about loan terms
- Fair dealing in credit appraisal and approvals
- Avoiding conflict of interest or insider trading
5. Unethical Practices to Avoid
- Mis-selling products to achieve targets
- Accepting gifts or bribes from customers
- Manipulating records or misreporting data
- Leaking confidential customer information
6. Whistle-Blowing and Internal Controls
Whistle-blowing means reporting unethical or illegal activity inside an organisation to authorities for corrective action. Banks must provide protection to whistle-blowers and maintain confidentiality of such reports.
Important Questions with Answers – Ethics at Workplace (Part 1)
A. Comfort and leisure
B. Moral values guiding responsible work
C. Personal benefits
D. Entertainment at work
Answer: B – Work ethic is about moral values guiding responsible and diligent work.
A. Punctuality
B. Integrity
C. Dishonesty
D. Accountability
Answer: C – Dishonesty contradicts ethical behaviour.
A. Hiding mistakes
B. Protecting customer information
C. Sharing all data publicly
D. Ignoring records
Answer: B – Bankers must protect customer data and use it only for authorised purposes.
Ethics at Individual Level (Part 3) – JAIIB PPB | Key Concepts & Practice Questions
A. Ethical leadership
B. Lack of clear policies
C. Rewarding honesty
D. Employee training
Answer: B – Absence of proper ethical guidelines leads to unethical conduct.
A. Transparent communication
B. Concealing product information
C. Unrealistic targets
D. Ignoring customer grievances
Answer: A – Transparency builds trust and ethics.
A. Customer Service Principle
B. Integrity Principle
C. Time Management Principle
D. Leadership Principle
Answer: B – Tampering with records is a breach of integrity.
A. Concealing unethical acts
B. Reporting wrong practices
C. Ignoring fraud
D. Manipulating data
Answer: B – It motivates employees to report wrongdoings responsibly.
A. Guiding a customer correctly
B. Disclosing confidential details
C. Following KYC norms
D. Maintaining transparency
Answer: B – Disclosure of confidential data is unethical.
A. Profit maximisation
B. Honesty and fairness
C. Competition
D. Self-interest
Answer: B – Ethics are rooted in honesty and fairness.
A. Pressure from management
B. Ethical culture set by senior leaders
C. Instructions from RBI
D. Peer group influence
Answer: B – Leadership sets the ethical tone for the organisation.
Q11. A banker must refuse a bribe from a borrower because:
Answer: It violates integrity and leads to disciplinary/legal action.
A. Freedom to ignore rules
B. Respect, fairness, and compliance
C. High-risk decision-making
D. Profit at any cost
Answer: B – Ethics balance profit with social and regulatory responsibility.
Q13. Maintaining confidentiality is related to which duty?
Answer: Professional duty of trust between banker and customer.
Q14. What is the first step in building an ethical culture?
Answer: Creating a written ethics policy and conducting awareness training.
Q15. Ethics training in banks helps employees to:
Answer: Identify ethical dilemmas and make the right choices.
Q16. “Integrity” can best be described as:
Answer: Doing the right thing even when no one is observing.
Q17. What is the key benefit of an ethical workplace?
Answer: Higher employee morale and customer satisfaction.
Q18. Which of these reflects ethical leadership?
Answer: Leading by example, maintaining transparency, and ensuring fairness.
Q19. Ethical behaviour ensures compliance with:
Answer: Laws, RBI guidelines, and internal policies.
Q20. Unethical practices ultimately lead to:
Answer: Loss of reputation, penalties, and disciplinary action.
How to Study This Topic Effectively
- Embed your YouTube video here – watch it to understand practical scenarios.
- Read all MCQs and revise explanations daily.
- Attempt the full question bank available in the PDF.
- Join our course link here for complete coverage and mock tests.
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Summary
- Ethics at Workplace is a high-weightage topic in JAIIB PPB.
- Focus on integrity, confidentiality, fairness, and accountability.
Stay ethical, stay consistent, and achieve your JAIIB success!
