“All decent people live beyond their incomes, and those who aren't respectable live beyond other people's incomes. A few gifted individuals manage to do both.”

Business ethics refers to contemporary standards and sets of values that govern the actions and behavior of an individual in the business organization. Being mortar and brick structures and virtual entities, Banks are soulful human organizations that define and shape the growth of civilization through arterial association in day-to-day life. Banks are constituted by humans, of humans and for humans. The essence of banking is human service through human beings. Banking is being human rather than becoming a human being. Therefore, bankers' ethical conduct is crucial to banking's survival. 

Customer centricity based on honesty, integrity, truth and trust is the foundation of banking. The four pillars lay down the code of ethics, which decides the banks' image. The better the ethics, the better the conduct of employees and the brighter the bank's image. 

Fortunately, despite being innate, ethics can be tutored, imbibed, and taught. A bank employee empowers through regular indoctrination of ethics into their character. Training in ethics is more critical than teaching credit assessment skills or foreign exchange techniques. Without ethics, dispensing banking products is just a ritual of mis-selling sans service orientation without any heart in the transaction.

Ethics in business is comparatively a new subject. The term' business ethics' came into everyday use in the United States in the early 1970s. In the next decade, about 500 courses in business ethics reached students through textbooks and casebooks supported by business ethics journals. A Society for Business Ethics commenced in 1980. In 1982, the first single-authored book in the field appeared. European business schools adopted business ethics in 1987, beginning with the European Business Ethics Network. Firms started highlighting their ethical stature in the early 1990s, trying to distance themselves from the business scandals of the day, such as the savings and loan crisis. A comprehensive idea of business ethics caught the attention of academics and media by the end of the Cold War in 1992.

Meanwhile, criticism of business ethics started, and people blamed ethics for infringing on the freedom of entrepreneurs. The perception scuttled the discourse of business ethics in media and academia, and to shun controversy, only a few corporates openly opted for business ethics as part of their Corporate culture. Ethics hardly existed in directors' reports worldwide a few years ago. 

Ethics is an internal code that governs an individual's conduct, ingrained by family, faith, tradition, community, and laws. Corporations and professional organizations have a written "Code of Ethics" that governs standards of professional conduct in the area of operation.

It is important to note that "law" and "ethics" are not synonymous, nor are the "legal" and "ethical" courses of action necessarily the same. Statutes and regulations passed by legislative bodies and administrative boards set forth the "law." Slavery was once legal in the US, but enslaving humans was never an "ethical" act. 

With increased investor interest in banking corporations and to sustain the inflow of walk-in deposits through crowd-sourcing, banking leaders have now embraced ethical modules in a big way. Now, business ethics reflects the philosophy of banks, of which one aim is to determine the fundamental purpose of its core competence. If a banking company aims to maximize shareholder returns, it shows sensitivity towards the ethical conduct of its employees and clients. Sacrificing profits towards moral training and vigilance surveillance, and expenses towards philanthropic purposes has become a bank selling point. Ethics now are the rules or standards that govern their daily decisions. 

Bank executives' responsibility is to make as much money as possible while conforming to the rules of banking, embodied in law and ethical customs. An honest banker acts responsibly in the communities where he operates, even at the cost of profits and other goals. 

Ethics are crucial in maintaining trust, ensuring responsible financial practices, and protecting the interests of customers, stakeholders, and the wider society. Ethics are essential in the banking industry for:-

Trust and Reputation: Banks handle people's money and make critical financial decisions. When customers have confidence in the ethical conduct of a bank, they engage in long-term relationships and recommend the bank to others, positively impacting the bank's reputation.

Customer Protection: Ethical practices ensure that banks act in the best interests of their customers. Banks have a fiduciary duty to protect their clients'assets. Unethical practices, such as misrepresentation, fraudulent activities, or misleading marketing, harm customers and erode their trust.

Financial Stability: Ethical conduct brings financial stability. Engaging in irresponsible lending or investments led to economic instability in the global financial crisis 2008. Sound ethical practices help prevent excessive risk-taking and promote a stable financial system.

Regulatory Compliance: Banking is heavily regulated to ensure the safety and soundness of the financial system. Ethical behavior is synonymous with compliance with laws and regulations. Banks that uphold high ethical standards always meet regulatory requirements and avoid legal issues, fines, and reputational damage from non-compliance.

Corporate Social Responsibility: Banks, as influential institutions in society, act ethically and contribute positively to the communities they serve. Ethical banking practices involve considering ESG, including social and environmental impacts and supporting sustainable development.

Employee Engagement and Morale: Employees are motivated and committed to an ethical work environment. A culture of ethics promotes fair treatment, respect, and integrity, leading to employee satisfaction and retention.

Long-Term Success: Ethical behavior is deciding on long-term sustainability over short-term gains. Banks that focus on ethical conduct build lasting relationships, retain customers, and enjoy sustained success. 

Ethics are a cornerstone of the banking industry. By prioritizing ethical behavior, banks establish trust and safeguard customers' interests to maintain financial stability. By ethically complying with regulations and fulfilling social responsibilities, the banks foster a positive work environment, all contributing to the institution's long-term success and well-being of the society.

Rightly said," Deposits and Advances are the blood of a bank, Ethics its lifeline."