Business Ethics Responsibility and Sustainability

Business Ethics Responsibility and
Sustainability

Contents
INTRODUCTION...................................................................................................3
1 Discuss about the key challenges relating to corporate responsibility and sustainability
within banking industry...............................................................................................................3
2 Analyse the best practice within banking industry, identifying the ethical and moral issues.. 5
3. Recommendations for business in banking sector...................................................................8
CONCLUSION........................................................................................................8
REFERENCES......................................................................................................10

INTRODUCTION
Business Ethics can be defined as implementing appropriate policies and practices that
can be justified as right in context of problems that are faced by businesses. Business Ethics
examine and apply ethical principles and moral in context of problems and issues that emerge in
business environment. This applies to all aspects and functioning of the business and all the
businesses irrespective of their nature and size should follow ethics in their businesses. In order
to ensure that all businesses follow their responsibility towards society and its different
stakeholders corporate social responsibility has been developed so that businesses can fulfil their
responsibility towards different stakeholders and society (Ferrell and et.al., 2019). Sustainability
of the business is a wider aspects in which businesses are required to maintain their sustainability
as well as of sustainability of the environment. This report will discuss about ethics,
responsibility and sustainability of the business. In this report banking sector has been
contextualised. This report firstly will discuss about challenges of corporate responsibility and
sustainability and followed by this best practice in the industry is being considered in banking
industry regarding ethical and moral issues. Banking industry and sector is now using techniques
in several ways in which users can easily complete their transactions and also are being availed
several other services of the banking. In this using technology for provide banking services has
contributed in enhancing transparency for the customers and technology also contribute in
sustainability of the banking sector. Implication of technology on banking services is also visible
in form of cost and this contribute in financial sustainability of the banking sector and
organisation operating within banking sector.
1 Discuss about the key challenges relating to corporate responsibility and sustainability within
banking industry.
Corporate social responsibility have become main stream in enterprise activity. In
currently, it has rapidly increasing the business opportunities which investing in social as well as
ethical initiatives. Generally, CSR, sustainability that are considered as being method or
technique which help for providing the best way in which balancing economic, environmental
and social practices (Crane, Matten and Spence, 2019). In order to fulfil the need and
requirement of stakeholder expectations. Within banking industry, it has risen in enterprise while

implementing the CSR practices, mirrored by social responsible for investment. (SRI) Social
responsible investment is consider as discipline which mainly consists of environment as well as
social perspectives. SRI is based upon the premise that usually banks adopt the new ESG
practices in order to meet the specific expectation of other investors.
In UK and US, there are 500 organizations spend $15.2 billion a year on the corporate
social responsibilities and sustainability (Louche, Busch and Marcus, 2019). At that certain level,
banking industry has faced the issue because of regulatory pressure and public scrutiny. The
record level of penalties and fines as result of banking malpractices. As a result, it may have
begun the integration with CSR factors within long term investment strategy in banking sector.
Afterwards, they have served as foundation not only focus on providing new services. It also
ensured that better management of risk in banking industry.
For banks service, the integration of ESG is costly in term of financial investment and in
relation to organizational practices. In context of financial perspective, it can be implementing
cost of CSR and sustainable within banking industry (Crane, Matten and Spence, 2019). From
strategic perspective, banks will have to adopt an effective policies, practices within
organizational structure.
When it will be implementing CSR, sustainability within banking industry but it can be
identified the various challenges, risks and threat. This is because when involvement of
stakeholders so that it possible to increase conflict.
 Generally, shareholders will be dividing into different shareholding who could upset with
the governance schemes with active engagement (Murdifin and et.al., 2019). In this way,
it has rapidly increasingly confliction situation among staff member with banking
industry.
 Managers, in charge of various corporate management process while controlling with and
without any stock option. But it effect on the overall process in context of performance
related incentives (Advantage, 2020). In banking industry, employee can understand the
human capital and its processing, with different shareholders. But they do not believed on
the shared value.
 It has developed the lack of transparency so that banks do not publish the full details
about the business capabilities (Crane, Matten and Spence, 2019). However, it does not