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- W93773807 abstract "Are bankers ethical? Despite being a highly regulated industry, banking has not gone untouched by ethical crises. While the situation pales in comparison to the shenanigans in other financial services industries (insider trading on Wall Street, the FSLIC fiasco), unfortunate examples of money laundering, insider loans, discrimination, and other questionable activities at banks have found their way into the headlines. To judge whether a bank is ethical or not, you have to look at its managers. There are three types of managers: those who are moral, those who are immoral, and those who are amoral. Moral managers are the guys. They make a conscious effort to be moral that carries over into their conduct, motives, goals, attitude toward the law, and general operating strategy. Moral managers aspire to succeed only within the confines of sound ethical precepts. One can view Chemical Bank's corporate policy of refusing to finance unfriendly takeovers, international arms trading, questionable businesses (e.g. sexually explicit publications), and loans to South African government agencies as a result of moral management. Immoral managers are not only devoid of ethical principles or precepts, but they are willing to do things that they know are wrong. Such managers' decisions, behavior, and actions are not in accord with ethical principles. An immoral manager is motivated by greed and his goals are profitability and organizational success at almost any price. Amoral managers float between these good and bad extremes. There are two types of amoral managers: intentional and unintentional. Intentionally amoral managers do not factor ethical considerations into their decision making, actions, and behavior. These managers are neither amoral nor immoral; they simply think that different rules of the game apply in business than in other realms of life. Unintentionally amoral managers do not think about business activity in ethical terms either, but for a different reason. These managers are either casual, careless, or inattentive to the fact that their decisions and actions may have negative effects on others. These managers lack ethical perception and moral awareness; that is, they blithely go through their organizational lives not thinking that what they are doing has an ethical dimension to it. An ethical guide to amoral management would say the letter of the law governs, not the spirit. The line between amoral and immoral management is often blurred. Bank of Boston's 1985 scandal, in which it failed to report $1.2 billion in foreign interbank currency transactions over the course of four years, could be judged as immoral since the bank pleaded guilty to a felony count and was fined $500,000. However, bank management claimed that the situation was an oversight by employees who were unaware of federal requirements surrounding this type of transaction. So was it an intentional scheme to sidetrack the law or just an unintended oversight? Another example is the $14 million back pay-settlement by Harris Trust and Savings Bank, Chicago, stemming from charges of discrimination. The bank denied any admission of bias, saying it only wanted to end the 15-year-old case. Is Harris Trust an example of immoral or amoral management? …" @default.
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- W93773807 title "Are Bankers Ethical" @default.
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