University of Essex, BE439: Business Ethics Essay on UOB Ethical Code

This essay examines the ethical dilemma faced by United Overseas Bank (UOB) in Singapore, focusing on the ethical code violation involving a banker's fraudulent activities. It explores the ethical experiences of stakeholders, including clients and the bank itself, and analyzes how Singapore's social context, such as its culture and reward systems, may have influenced the events. The essay applies consequentialist and non-consequentialist ethical theories to assess the morality of the actors' actions. Furthermore, it includes a personal reflection on how the author would have acted in a similar situation, considering their own moral sensibilities and providing recommendations for ethical improvements within the organization. The essay utilizes real-life examples and references relevant business ethics theories to provide a comprehensive analysis.

Running head: BUSINESS ETHICS
BUSINESS ETHICS
Name of the Student
Name of the University
Author Note

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Introduction
The study associated with business practices and policies in relation to the domain of
insider trading, corporate governance, fiduciary responsibilities, discrimination, bribery and
corporate social responsibilities is known as business ethics (Beauchamp and Bowie 2004).
Professional ethics are also included under business ethics, which studies the moral, ethical
concerns and ethical principles, which can be witnessed in the business environment.
Business ethics should be considered significant for every aspect of the business. The ethical
structures, values, principles and norms contribute towards the success of the businesses
(Ferrell and Fraedrich 2015). The principles, which shapes business ethics include integrity,
loyalty, honesty, fairness, leadership and respect for associates. Business ethics acts as a base
or guideline for supporting any and every transaction of business (Jones, Parker and Ten Bos
2005). The main motive of ensuring business ethics in a professional environment is for the
reasons like for restricting business malpractices, for gaining confidence amongst consumers,
for safeguarding the consumers’ rights, for creating employee goodwill, for sustaining growth
in business and for consumer satisfaction. The purpose of the essay is to present a discussion
about the effects of a specific ethical phenomenon on the ethical experience and behaviour of
the associated stakeholders of an organization. The selected ethical phenomenon for this
paper is the Ethical Code. The paper will frame the assessment by associating real-life
examples. The paper will assess the effect of the ethical phenomenon by presenting an ethical
dilemma experienced by United Overseas Bank in Singapore. In the essay, the contribution of
the social contexts in the chosen organization’s ethical dilemma will also be presented for
understanding the experiences of the organization. The paper will relate the situation faced by
the organization by relating it to the theories of non-consequentialist and consequentialist.
Moreover, the paper will also involve my personal perspective or reflection for such an
ethical dilemma building on my moral sensibilities.

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Body
Ethical experience during ethical dilemma
UOB bank in Singapore is a multinational organization, which is mostly existent in
the Southeast Asian regions. UOB offers corporate banking, personal financial services, asset
management, private banking services, venture capital, insurance services and corporate
finance services. The company possesses around 68 branches in the regions of Singapore
with another 500 corporate offices situated in 19 regions (countries). One of the most
established and oldest banks of Singapore have experienced an ethical dilemma under the
ethical phenomenon of ethical code (Davies 2016). Ethical codes are considered to be the
ethical phenomenon accepted by organizations for the purpose of assisting the employees
with an understanding of wrong or right. Ethical codes involve the application of the
developed understanding in the process of taking strategic decisions. Ethical code infers the
practices under three categorical level including, code of conduct, code of professional
practices and business ethics. United Overseas Bank has experienced a number of incidences
that led to a situation of an ethical dilemma. One of the senior personal bankers in United
Overseas Bank was involved in cheating with her client’s investments of around 200,000.
The banker used the money for personal expenses and shopping luxury goods. This incident
was not the first time, where she was breached the ethical codes. The investigations found
numerous incidences of her questionable understanding of what is right or wrong. Another
experience that reflected the breach in ethical codes was of another banker of UOB, who was
engaged in abusing a client and misappropriated 200,000 plus dollars from the client. The
evidence of disrupting the ethical codes included the ‘blurring of the lines’ between wrong
and right in every phase of misconduct. The bankers were involved in forgery in the bank
forms, manipulation of clients for transferring money and misused the received cash for
personal use, which was meant for investment purposes. The core values or principles of the
bank were assumed to be teamwork, integrity, respect and trust and performance excellence.

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Being such an old bank, it has always invested efforts and leadership expertise for conserving
the highest standards of legality, morality, and ethics without the presence of any form of
compromise. The stakeholder associated with these events of an ethical dilemma is the
clients, the fraudulent bankers and the bank, which has to suffer from the transformed
reputation. Clients of the United Overseas Bank were convinced with the communicated and
reflected core values of the bank over the years. However, after the experience of numerous
incidences, they have questioned the implementation of the set core values and ethical
principles in the organization. The organization experienced acquisition one after the other,
which questioned its effectiveness of maintaining ethical standards throughout the branches.
The experiences in these cases of fraudulent activities, which questioned the ability of the
organization in maintaining the ethical code amongst their employees, reflected ethical
dilemmas amongst all the associated stakeholders of United Overseas Bank (Ferrell,
Fraedrich and Ferrell 2008). The clients experienced a different picture of the promised
ethical code of the organization, which ideally includes the aspects of treating the customer
fairly, maintaining the standards of Objectivity, Independence, and Professionalism. The
bank also promised about the prevalence of transparency and compliance for rules and
regulations. Every constituent of the ethical phenomenon were disrupted, by demonstrating
the lack of understanding of the employees.
Impact of social context on the experienced incidents
According to the prime minister of Singapore, Lee Hsien Loong depicted that the
country lacks excellence in accomplishing the require service culture. The culture of
Singapore, in spite of being a diverse country, includes the prevalence of rules for every
incidence rather than depending on the universal principles. The country has strict
regulations, especially in the working culture. The culture restricts the consideration of
innovative ideas from the employees and other internal stakeholders. Moreover, the culture
does not support the unfocussed segments of core businesses, being operated by over-

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enthusiastic entrepreneurs. The opportunity or power of innovation among the Singaporean
employees may result in work dissatisfaction in the organizations by being the followers.
Without the opportunity or provision to innovate, employees may feel restricted and not
value, thereby resulting in the change in behavioral approach and contribution motive
towards the organization. In the past, this theory of few innovators and majority followers
was prevalent and was effective for the business transaction but later Singapore became the
hub for increasing global economic opportunities and businesses, which demands the country
to be more open to the ideas and creativity from a wider population. In regards to working
culture, the country is experiencing various changes but the process will be gradually
witnessed. The culture implication on the organizations is changing, as the work environment
is changing in terms of working hours, days of operation and overload, but it still has a long
gap for improvement. Singapore is considered to be the most expensive city in the world,
which affects the working classes and challenges them in maintaining the living standard of
people. In Singapore, the tough and expensive lifestyle restricts citizens to leave job roles.
The challenging financial commitments for surviving a decent life push the workers or
professionals the extra mile to fulfill their roles and responsibilities (White, Hamrick and
Liew 2019). Around 25 percent of the citizens communicated the harsh reality of not being
able to quit from an organization, as they are unsure of other better opportunities.
The country might be considered accompanied by a wealthy population but
experiences a higher rate of depression. In response to the fast-life culture, Sylvia Lim, the
elected member for opponent Workers party Chairman stated that “focus on happiness as a
national goal”. However, the former prime minister of the country, Lee Kuan believed that
stimulating GDP is the priority and prosperity contributes towards satisfaction. For the
Singaporeans, wealth is equated with happiness. GDP is always considered to be the priority
as the political leaders prefer to be in the Wall Street Journal as the wealthiest country of the
world (Tan 2016). The demand for always being at the top pushes the organizations

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operating in the country to set up the practices and reward system based on competition. In
spite of the materialistic outlook of the country, the young population has recognized the
need for happiness and mental well-being rather than concentration only on the wealthy
lifestyle. The country experiences a high rate of depression with the rising GDP. The pressure
from the high standard living is reflected in the competitive environment and stressful living.
The young population of the country has urged for a shifted focus on people’s wellbeing than
the GDP rates. The rewards and recognition programs in Singapore are based on performance
bonuses with salaries structure under pressure. Although, the reward system motivates the
employees for contributing efficiently but also limits their boundaries for creativity and
engagement.
Thus, the rewards system and culture of Singapore are affecting the well-being and
the behavioral approach of the citizens (Frederick 2002). The diverse culture and standard of
living are contributing to their growth but at the same time pulling the population with
anxiety and stress. The experience based on the ethical dilemma was not entirely caused by
the culture of the country but has contributed to the understanding of what is ‘wrong’ and
‘right’. The decisions, behaviour, professional practices and demand for prosperity as the
source of happiness have been affected by the culture and reward system of the country.
Consequentialist ethical theories
According to the conception of consequentialism, which is considered under the
normative ethical theories, the consequences from an individual’s conduct are directly
dependent on her or his judgment regarding the wrongness and rightness of the specific
conduct (Werhane 2019). From the perspective of consequentialist theories, good
consequence or action can be derived from morally right actions. Egoism under the
consequentialist theories also believes that rightness is directed by the maximization of self-
interest. Although, consequentialist theory can be applied easily by determining the impact

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but can also be very complex for a general consensus and for a collective definition of ethics
(Lindblom and Wikman-Svahn 2018). In this case, the actors or the bankers associated with
the ethical dilemma, manipulated or utilized the trusts of clients for the United Overseas
Bank for their own benefit and luxury. According to the understanding of egoism under the
consequentialist theories, the bankers will not have the long-term self-interest of fraud and
vandalism of people’s trust by risking their career, which ultimately does not, maximizes the
self-interest of the actors. The actions of the bankers involved in the ethical dilemma of
disrupting the ethical codes were morally wrong as their actions led to negative consequences
for all the associated people or stakeholders such as the clients, UOB including their career as
well as it was not derived from their maximization of the self-interest (Kvalnes 2017). The
experience caused a bad reputation for the company as they lost trust and reliance on the
citizen of Singapore; the clients suffered unacceptable behaviour and manipulation, which led
them to lose a huge amount of money (Harris and Monaghan 2018). These outcomes were
not good for the greatest number even including the bankers. The action was morally wrong
because the clients involved them with the bank for the motive of investing money, where the
motive also benefitted the bankers with their targets and unethical actions of the bankers were
performed without experiencing any harm from the clients.
Recommendations:
Ethics and morality are areas, which have become a growing priority amongst all
business practices and leadership roles but the organizations, countries and even individuals
are struggling in incorporating a structured ethical culture. If I were a part of the organization,
the first thing I would have ensured in the alignment between the expected competitive
advantages of the brank with the organizational practices. The core competency that the bank
has created is a reputation associated with trust and ethical standards. Understanding the gap
between the expected and actual organizational practices should have been the main priority.
If I were among one of the bankers, I would have acted by understanding my ultimate self-

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interest, which is certainly not involving in fraudulent activities as it can harm the greatest
number of people including my career. I would have considered the consequentialist ethical
theories for assessing the outcome of an action before involving my conscientiousness into
practice. Harming a person’s reliance, who have faith in me and my organization with a huge
amount of investment will never exceed my personal benefit. Moreover, the client was not
even causing any harm by trusting for investment, which does not justify the action either. If I
were a significant part of the decision-making body of UOB, I would have adopted
preventive measures and assessed the presence of any gap especially in case of dealing with a
huge amount of investments. The ethical culture can be ensured by incorporating
communication, leadership and training programs for each senior and junior employees so
that the organization can prevent the diversion of self-interest and priorities (Trevino. and
Nelson 2007). Learning from the experiences of ethical dilemmas should be the main process
for maintaining ethical standards. Failing to maintain the standards of ethical codes should be
the main concern of the companies. Businesses or employees should consider the
consequence of a greater amount of negative reputation caused due to the prevalence of
global connectivity and the application of social media. The moral sensitivity and
consideration of consequentialist ethical theories should consider the complexity of mending
the consequences caused due to broken trust and experiences of external stakeholders due to
an ethical dilemma in this digitalized world, where ‘spreading the word’ has become
increasingly accessible. If I were in the position of the organization, I would have invested
money and effort in developing or restructuring a code for prioritizing ethical performance.
The ethical code documentation could present clear aims, expectations and standards for
ethical performance. The documentation should be accessible to each and every employee for
supporting their actions as a guideline. If I were in the position of the banker, I would have
followed the footsteps and ethical values of the senior management as they are majorly
responsible for framing an employee’s frame of mind and cultural heritage. Understanding

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the gap in training and gap of knowledge should be the main concern of the businesses as it
can regulate the actions of engaging staff members and the stakeholder behavioural approach.
From the perspective of those bankers, I would have demanded support routes in surviving
with stressful targets and incentive plans as one of the reasons behind that action was the
stress of leading a high-standard life and inability to acquire support from the employer in
terms of career growth. The support routes can help a person reach out to the higher
concerning bodies for curving the priorities and perception of maximizing self-interest as
well as can help other colleagues or witnesses to report or help the actors with the intention of
fraud or violation of ethical norms. The support route can help in preserving the company
policies and the ethical behavioural practices by eliminating the standards or organizational
expectations that can lead to that behaviour. Identifying suspects or potential actors of
unethical practices can contribute to saving any disrupted channel by helping the employees
return back to the track. Moreover, businesses or United Overseas Bank needs the
significance of measuring the efficiency of ethical programs. The measurement of the
contribution of ethical programs needs to be quantified for understanding the involvement of
each employee in the process and to encourage open discussion (Shields et al. 2015). For
building and maintaining a strategic position in the market, organizations should be able to
establish the applications of ethical phenomena such as ethical codes and whistleblowing.
Rather than imposing unrealistic control over the employees with targets to resonate the
culture of Singapore, UOB could have executed a process of assessing three-level
implementation of ethical code including, codes of conduct, codes of professional practice
and business ethics. Any disruption amongst the employees can cause major harm to the
synchronized alignment of the three levels. If I were in the position of the bankers, who were
the actors in creating the experience of ethical dilemma, I would have regulated my decision-
making process with the consideration of the standard ethical principle that is applicable for
both the organization I am working in and personal moral sensitivities. My moral sensitivities

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are based on the value of right or wrong and are framed based upon the ethical principles
involving least harm and beneficence. My moral sensitivities involve awareness about the
negative outcome of a fraudulent action and are aware of the problems associated with the
lack of understanding of what is right and what is wrong. My decisions are also based on the
aspect of Utilitarian ethical theories, which involve the capability of predicting consequences
of action and also derive the choice, which can be beneficial for the greatest good. From the
businesses’ perspective ensuring ethical behaviour throughout the operational activities
should involve positive reinforcement and feedback mechanisms for ethical codes. The
influential leaders of the UOB could have defined the code with reference to the company
standards rather than relying on the country’s culture and reward system (Halinen and Jokela
2016). Singapore’s culture and rewards system, undoubtedly contributes to the growth and
development of the population but at the same time can be intimidating for the majority of the
young professionals, which can either be the source of their stress/depression or can be the
position of an ethical dilemma. Developing an understanding by the effective consideration
of consequences before committing an action would have been my approach for deciding
between morally right or wrong. Moreover, being signed in for the corporate social
responsibilities would have been the regulatory sign for my decision-making and behavioural
approach towards any transaction.
Conclusion
Therefore, it can be concluded from the paper that the experience of the ethical
dilemma due to the fraudulent activities of the bankers in United Overseas Bank affected
various associated stakeholder involving the bank, customers, investors and the even the
bankers as they ruined their career without the consideration of the consequences, which
should have been determined by their ultimate self-interest, which can never be disrupting
one’s own career and the faith/reliance of a client with a huge amount of money. The actions

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were morally wrong and depicted the lack of understanding between right or wrong. The
actions could not be considered positive for the greatest number of stakeholders, deducing it
to be an unethical approach by the actors involved in the case. If I were in the position of the
actor, I would have been considered the potential moral problem and the consequences before
committing such an action.

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