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ETHICS IN BANKS AND FINANCIAL INSTITUTIONS : JAIIB PPB IMPORTANT TOPIC | JAIIB FREE STUDY MATERIAL 2023

ETHICS IN BANKS AND FINANCIAL INSTITUTIONS | PPB Module D DETAILED SYLLABUS

This article talks about the detailed syllabus of the newly introduced module of PPB which is the ethics in Banks and financial institutions.

Since aspirants are completely unfamiliar with the syllabus and topics of this module, this article details what are the topics and chapters under this module which will eventually help aspirants start an effective preparation.

Module D of Principles and Practices of Banking is further divided into five chapters which are as follows 

Banking, Business Ethics, and Ethics: An Integrative View 

Ethics at the Individual level

Ethical dimension: Employees

Work ethic and workplace

Banking ethics: Changing dynamics

Let’s further decode the major topics coming under the given chapters

BANKING, BUSINESS ETHICS AND FINANCIAL INSTITUTIONS: AN INTEGRATIVE VIEW

This chapter majorly talks about the concepts of ethics in Banks and financial institutions the differences b/w business ethics and values, myths and reality regarding business ethics, the ethical crisis in business, and the prevention of ethical crisis.

READ ALSO: ETHICS IN BANKS AND FINANCIAL INSTITUTIONS: JAIIB PPB IMPORTANT TOPIC

Following are some subtopics of Banking, Business Ethics, and Ethics: An Integrative View

Values and ethics 

Ethics and business values

  • Difference b/w business values and business ethics 

Business ethics Myths and realities 

Definition Principles and Practice of business ethics 

  • Principles of business ethics
  • Dignity 
  • Fairness 
  • Honesty 
  • Openness
  • Reputation/goodwill
  • Prudence 
  • Concern for others
  • Philosophy of ‘Trust ship’
  • Business ethics practices in India-Corporate Governance 

An ethical crisis: Is business ethics an oxymoron?

  • Pre-crisis stage
  • Prevention of crisis
  • Whistle-blower policy 
  • Crisis
  • Crisis stage 
  • Is business ethics an oxymoron?

Ethics foundation of banking: Finance depends on trust

  • The Necessity and Value of Ethics in Banking
  • Guards’ reputation/Goodwill
  • Helps avoid the risk

Principles of ethical banking

  • Principle of trust 
  • Significance of trust 
  • Standard banking code of conduct 
  • Integrity 
  • Neutrality 
  • Reliability 
  • Transparency 

The ethical foundation of being a professional

Professionalism in banking

  • Ethical issues of professionals 

Banking ethics in a global context: Enron and its lesson

  • Enron: Company background
  • The crisis
  • Reason for the crisis
  • Learning from the case

Global financial crisis

  • What happened?
  • How unethical practices triggered the Crisis

Indian setting for ethics: Lessons from Satyam

  • Background
  • Crisis event 
  • Whistle-blower
  • Confession and the effect 
  • What went wrong
  • Independent directors’ role
  • Auditor’s role
  • Senior management’s role
  • Employees’ role
  • Post-crisis development

Learning from the case study 

  • Top management actions are crucial 
  • Employees are a party for some reasons
  • Reputation is adversely affected 
  • The professional ethics of directors matter
  • Auditors must have professional ethics
  • Ensuring good corporate governance 
  • Post-crisis handling

An Indian bank case study 

  • A bank that went bust 
  • Background
  • Reasons for failure 
  • Lessons learnt 
  • Unethical practices followed
  • Overlooking regulatory stipulations
  • Violation of the principle of trust

ETHICS AT THE INDIVIDUAL LEVEL

This chapter mainly covers the concepts of values, norms and beliefs, the significance of these for both individuals and businesses, the need of aligning personal ethics and values with that of the enterprise and resolving ethical dilemmas.

Values, norms, belief and their role

  • Values
  1. Characteristics of values 
  2. Value classification
  • Norms
  • Beliefs
  • Role of Norms, beliefs and Values in the Management 

Core values: The value of a value

  1. Identification of core values 
  2. Communicating core values 
  3. Aligning values and practices

Morality and personal values

  • Morality 
  • Personal values

READ ALSO: DIGITAL PAYMENT SYSTEMS | PPB IMPORTANT NOTES

Value-conflict: How should I live?

Value-Conflict in an organisation

Integrity and accountability at the individual and corporate levels 

  • Personal ethics 
  • Business ethics
  • Conflict b/w personal ethics and business ethics
  • Individual Integrity 
  • Individual responsibility 

The golden rule 

Knowing right from wrong and acting morally

Ethical Reasoning and real-world application

  • Theory of moral judgement 

Application of business ethics 

  • Ethics of human resource management 
  • Ethics of sales and marketing
  • Ethics of production
  • Ethics of finance

Ethical dilemmas: Resolving ethical dilemmas 

  • Resolving ethical dilemmas 

A Framework for ethical decision making 

ETHICAL DIMENSIONS: EMPLOYEES

This chapter is mainly constituted of topics like job discrimination, certain abuse of power by employees, Understanding the act that constitutes sexual harassment, managing conflicts of interest, and fair accounting practices.

Let’s decode these further.

Insider trading, the use of confidential information, paying bribes, and other forms of misconduct

  1. Insider trading 
  2. Dealing with proprietary data
  3. Bribes 

Obligations to third parties

Job discrimination 

Sexual harassment 

Managing conflicts of interest

Fair accounting practices: Related party transactions 

  1. Minimum disclosures: Notes to accounts 
  2. Summary of significant accounting policies
  3. Disclosure requirement 
  4. Regarding related party disclosures, accounting standard 18

HRM ethics 

Principles of Representation and work environment 

Employees as ethics ambassadors & managers as ethical leaders

READ ALSO: JAIIB PPB 2023 Principles and Practices of Banking Short Notes Part 3

WORK ETHICS AND WORKPLACE

Work ethics comprises meaning, identification and significance of work ethics, the importance of thinking beyond self-growth, ways of recognising ethical workplaces, understanding situational analysis for identifying causes of and solutions for unethical behaviour, and the need for whistle-blower policy and measures to protect all genuine complainants.

Following are the meticulously detailed subtopics under the Work ethic and workplace 

Work ethics 

Something bigger than the Self

  • Self
  • Family 
  • Community 
  • Religion
  • Society 
  • Global causes

Ethical Behaviour at the Workplace: Benefits 

Recognising ethical workplaces

Unethical behaviour: Causes and remedies 

  • Causes of unethical behaviours
  1. Code of Ethics Manual 
  2. Fear of action
  3. Unrealistic target
  4. Influence of co-employees 
  5. Unprincipled leadership 
  6. Means are not appreciated 
  • Remedies for Unethical behaviour
  1. Abuse of official email 
  2. Pre-employment tests
  3. Personal habits 
  4. Data leakage 
  5. Helping friends with social decisions

Conducting personal business during office time

Taking credit for others’ work

Ethical Lapses and organisational culture

Ethics of a banker

Whistleblowing in Banks

  1. Scope and Coverage 
  2. Procedure for lodging the complaint 
  3. Handling of complaints by RBI 

Whistleblowing law in India 

BANKING ETHICS: CHANGING DYNAMICS

This chapter familiarises you with the impact of Information technology on banking and financial services, the role of ethics in technology-based services, data security-related aspects and issues related to data privacy.

Below we have detailed the major topic that constitutes banking ethics: Changing dynamics.

Ethics and technology 

  • Role of information technology in Banking
  • Role of ethics in technology 

Data security and privacy 

  • Data security 
  • Data privacy 

Intellectual property rights, patents and propriety rights

Ethics of information security 

JAIIB/CAIIB Free study material 

Cover the module-wise syllabus of JAIIB/CAIIB.

Class Class type  Streaming time  Tutor
                                                                              Live
Retail Banking and Wealth management   Conceptual 7:30 AM Jyoti
Accounting and financial management for Banker Standard 7:00 PM Kundan
Rural Banking Standard 7:00 PM  Jyoti 
Accounting and financial management for bankers Standard 9:30 AM Ashish
Advanced business and financial management Standard 8:30 PM Ashish
Human resource management (CAIIB elective) Standard 8:30 PM  Rupali
Bank promotion Standard 8:30 PM  Rupali
Advanced business and financial management Standard 7:30 PM Jyoti

 

Course Details

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  • Chapter-by-chapter questions from the past year
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  • Videos downloadable at 2x speed

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