AS per VNSGU Syllabus 2017-18

1. Ethics and Corporate Social
Responsibilities in Banks
“Business Ethics and Corporate Social Responsibilities have become an integral part
of the present globalized business environment and it changed the business models
of Banks.’
SDJ International College

2. Ethics in Banks
 Pillars of the Ethics in Banks:
1. The Banks must comply with all Laws, Rules and
Regulations levied by the competent authority to
enhance the confidence of the society.
2. Banks must ensure fair and equitable treatment with all
the stakeholders.
3. The banks should adopt the principle of Utmost Good
faith regarding the disclosure of their financial situation.
4. The banks should behave as socially responsible
corporate person.

3.  How to maintain Ethical standards?
1. Comply with all rules and regulations levied by the relevant
authorities.
2. Follow the guidelines of the RBI.
3. Ensure the safety and fair returns to the deposits of the depositors.
4. Transparent accounting practices.
5. Effective Risk management system.
6. Always provide good services.
7. Focus on Customer satisfaction.
8. Treat employees fairly.
9. Arrange for the necessary employee trainings.
10.Arrange for the internal code of ethics and a system to monitor
compliances and suggest remedial actions when needed.

4.  What not to do, to maintain the Ethical standards:
1. Avoid corruptions in money transactions.
2. Do not finance the unstable industries like Real Estate.
3. Do not invest money in stock market.
4. Do not engage itself in any kind of illegal activities like smuggling or
money-laundering.
5. Do not appoint a pliable Auditor to prepare non-transparent financial
reports.
6. Do not provide finance for the activities which harms the human
health or are prohibited by law; child labour.

5.  Benefits of ethics in Banks:
1. The Goodwill of the bank may increase, which helps in increasing the
revenues.
2. The management of NPA becomes effective.
3. Development of Professional Approach.
4. Decreases the problems of non-performing loans.
5. Banks will be able to retain the loyal employees.
6. Improvement in internal governance.
7. Bank will be able to attract the ethically conscious clients.
8. It may opens the gate of International market.

6. Corporate Social Responsibilities in Banks:
 Each business enterprise uses the natural resources and human
resource of the society. Even the profitability of the unit also
depends on the society. Therefore, business organizations must be
accountable to society.
 Here, the business obligations can briefly be stated as any business
activity should not affect the welfare of the society adversely.
 Along with that, the resources must be used in most efficient
manner, and there should not be environmental degradation.

7. The principles of Corporate Social
Responsibilities in Banks:
1. The financial institutions should take into consideration the
environment, social equity and economic justice into their business
strategies.
2. If any way, the environment is harmed by the institution, the full
responsibility should be accepted.
3. They should have transparent business policies and dealings.
4. They should be accountable to their shareholders and to the
community where they operate.
5. They should frame good corporate governance policies and follow
them sincerely.

8. Some of the examples of the Corporate Social
Responsibilities in Banks:
1. Blood Donation camps, free medical check ups, free medicines and
donating Ambulances by Banks.
2. Scholarships to the deserving candidates to promote Education.
3. Some banks provide financial assistance to the weaker section of the
society.
4. The Banks of India has a policy of recruiting blind and disable
individuals, and it also have a cell to prevent the sexual harassment
at work place.
5. BOI also helps the NGOs in noble causes like Eye Donation and
Blood Donation camps.

9. Thank You