Essay on Banking Royal Commission

Running head: BANKING ROYAL COMMISSION
Essay on Banking Royal Commission
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1BANKING ROYAL COMMISSION
Literature review on ethics
Ethics is defined as a set of moral principle that plays important role in people’s decision
making and other activities. Ethics identifies and elaborates the difference between what is right
and what is wrong. It is also concerned with moral philosophy considering goods for individuals
(Li 2019). Proper ethics let people realize about how to live a good life, their moral rights as well
as responsibilities, the right and wrong language to use and moral decision making.
Role of ethics in financial services
Ethics is very essential in the financial and accounting industries. It has been determined
that role of ethics in financial industry is moral, legal and practical. Ethics is expedient for both
the cases whether a financial organization has an in house fiance manager or an external hired
manager. The relationship between the finance manager and the customer is dependent on trust
and ethics (Liu 2018). The finance industry needs to take all the financial decision ethically
without violating anyone’s trust and belief. Business ethics and financial ethics do not differ
much from each other.
The basics ethical principles that play very essential role in the accounting and banking
sector rather throughout the finance industry are principles of mutual trust, principle of mutual
benefits and interest rate, principle of good intentions, principle of business tolerance an business
compromise, principle of ethical improvement of business behavior, principle of conflict
between the one’s own interest, principle of business behavior and ethical improvement,
principle of conflict and principle of one’s position and demonopolization.

2BANKING ROYAL COMMISSION
Ethical conduct
Ethical conduct is referred to as a moral principle application that is again applicable for
a specific situation. In other words, the ethical conduct can also be defined as ethical behavior. In
each industry ethical aspects are needed to be followed and appreciated. People need to behave
according to the society standards and expectations (Markmann & Ghani 2019). Ethical conduct
is essential to maintain workplace relationship and also in individual relationship. Ethical
conduct evaluates the moral implications of actions. A society can function properly with the
help of effective ethical behavior. If individuals start behaving unethically then the total
workplace relationship will start getting worse.
Meaning of ethical conduct in finance service context
In the financial industry also ethical conduct play very essential role. Consideration for
the need of protection for rights and interest of the depositors, confidence in the finance market,
establishing stability, economic development etc are the different ethical principle follows and
maintained in the financial sector (Petersen et al. 2018). The finance sector needs to make sure
effective and efficient functioning of the investment and deposit system. The management team
must avoid those prcatices in transaction system which may cause economic damage for
individual personnel. In order to maintain integrity, reliability and sincerity in the financial
activities proper ethical conduct is very important. For successfully accomplishing the objectives
of finance sector and tp each economic growth n the competitive market the entire financial
industry need to maintain proper ethical aspects besides the rules, law and legal regulations.
Difference from law and regulations