Ethical Understanding in the Banking Sector

Abstract

Chapter 2 discussed the development of modern banking and made the case that banks occupy a central role in society and that their services are essential to communities. The previous chapter also briefly reviewed the dominant ethical theories as they relate to the banking sphere. Part II will examine the way in which the bankers themselves view their activities. Before and after the interviews undertaken with bankers, much publicly available material has appeared in press releases from the banks or speeches or interviews given by prominent bankers. Certain banks also publish reports on their corporate social responsibility activities. Therefore the general public has been regularly treated to stories that banks’ publicists wish to circulate. On the other hand, investigative reporters have frequently unearthed and written about alleged unethical conduct of banks. The purpose of these interviews was primarily to engage with senior bankers in an earnest dialogue about their views on banking and about actual banking conduct. In view of the vast scope of banking, a decision was made to limit the focus to banks in Australia and Hong Kong for the interviews. Two sets of common interview questions were designed that were submitted in advance to the selected banks. One set was intended for chief executives or other senior line executive officers.¹