Professional Documents
Culture Documents
Ethical banking is not just about purely investing. It often tries to promote positive
social change and aims to achieve sustainable environment. Each bank performs
various functions like money lending, accepting deposits, transferring of money and
management of foreign exchange. The Cooperative Bank (UK) offers its customers
home energy rating on purchases of consumer durables. The purpose is to enable
them to better understand how energy efficient a property is and how to make
improvements. Moreover, banks mortgages include carbon-offset features. Every
year that a customer holds a mortgage, the bank offsets a fifth of the carbon
dioxide emissions arising from a typical households energy consumption. The
offset money were used for reforestation in Uganda, a Bangladesh project that
trains local people to build energy efficient stoves and a Bulgaria project supporting
micro-hydro electricity generation (Goyal and Joshi, 2011).
Unlike the other local banks, the Development Bank of the Philippines (DBP) has
strengthened its corporate social responsibility efforts, enabling it to share the
benefits of its continued financial success with disadvantaged sectors of the
society. The Banks CSR initiatives are grouped into three major areas:
OFW Advocacy - DBP promotes the welfare of overseas Filipino workers and
their families through an integrated and focused approach in uplifting the
sector.
Banks can channel economic resources in different ways that make money result in
some form of evil-doing. The two main ways in which banks can do this are (a) by
lending money to others, that is, by issuing credit facilities to their clients, these
being customers corporations, governments, individuals, etc., and (b) by actively
and directly investing money, that is, owning shares. When banks lend money to
others, the bank may not be doing wrong by itself; it is these other entities which
might be engaged in wrong-doing. However, the banks still have to be morally
responsible. Serrano, 2010). How banks use money is not irrelevant from a moral
and ethical perspective. Crime, pollution, corruption, violation of human rights,
threats to human life, totalitarian regimes, and all sorts of wrong-doing need and
use money every year. Financial institutions play a key role in the supply and
movement of money. The banking industry plays a key role in the velocity of money
supply. Whenever investors money is channeled to evil-investments, it is the bank
who is guilty of this wrong-doing and not the individual investor, unless of course,
the individual investor was aware of the wrong-doing, and if he was a significant
investor to influence the company or the fund in question.
REFERENCES
Goyal , K. and Joshi, V. (2011). A Study of Social and Ethical Issues in Banking
Industry.
Green, C. (1989). Business Ethics in Banking. Journal of Business Ethics.
Serrano, R. (2010). Ethical Issues Facing the Banking Industry.
ANNEX 1
Mission Statement
We will work for raising the level of competitiveness of the economy for
sustainable growth.
We will support infrastructure development, responsible entrepreneurship,
efficient social services and protection of the environment
We will promote and maintain the highest standards of service and corporate
governance.
Corporate Vision
By 2016, a globally-recognized development financial institution, serving as a catalyst
for a progressive and poverty-free Philippines.
Core Values
Integrity (Honesty, Truthfulness, Transparency)
Excellence (Competence, Dedication to Work, Professionalism)
Teamwork (Harmony, Cooperation, Synergy)
Service to Others (Customer Oriented)
Love for the Filipino (Love of country and its people everywhere)