Banky’s Understanding: Values: Internalized standards of desirable behaviour. Characteristics: Provide standards of competence/morality. Few in number. Transcend situations. Relatively permanent. Core of personality. Terminal values: Ultimate goals desired in lifetime (happiness, freedom, wisdom, self-respect, inner harmony). Instrumental values: Modes of behaviour/tools to achieve terminal values (honesty, responsibility, ambition, courage, helpfulness). Permanent in nature. Values derived from norms in society, religion, culture. Learned from childhood — parents, teachers, society. Values = beliefs that give meaning to life.

Banky’s Understanding: Norms: Expectations of proper behaviour. Informal guidelines. NOT published. NOT obligatory (cannot be made obligatory except by sanctions — penalties, condemnation, exclusion). Universal but inconsistent. Play key role in social control and harmony. We are often unaware of norms influencing us. Beliefs: Thoughts considered true by a person. From: certainty of life, probable events, or faith in ideas. Basic to our personalities and individuality. Define us to others. Our reactions to others based on our beliefs. In management: Corporate culture = shared values + beliefs + norms. Ethical culture = ethical principles of organisation (policies + management views + co-worker influence + opportunities for unethical behaviour).

Banky’s Understanding: Core values: Fundamental beliefs of person/organisation. Dictate behaviour. 3 steps of management by values: (1) Identify core values (what does the company stand for?). (2) Communicate to all stakeholders (employees must know mission and values). (3) Align values with practices (put values into action). Examples: customer service, employee care, quality, ethics, integrity, innovation, social responsibility. The Golden Rule: Treat others the way YOU want to be treated. Universal across cultures, religions, civilisations. Applies to: customer service (serve as you want to be served), lending (lend responsibly), marketing (advertise truthfully), HR (treat colleagues with respect). Simplest yet most powerful ethical principle.

Banky’s Understanding: Individual integrity: Consistency of honesty across ALL situations. Not honest in one forum and dishonest in another. A person of integrity wears the same hat everywhere. In banking: integrity = truthful with customers, accurate in reporting, honest with regulators. Individual responsibility: Taking ownership of actions and consequences. Not blaming others or circumstances. In banking: responsible for every transaction, every advice, every decision. Ethical dilemmas: When two or more ethical principles conflict. No clearly right answer. Resolution process: (1) Identify the ethical conflict. (2) Gather all facts. (3) Evaluate options and consequences. (4) Consider ALL stakeholders affected. (5) Decide based on principles. (6) Act on the decision. (7) Review and learn. Value conflicts: Personal values vs organisational demands. Target pressure vs ethical conduct. Short-term profits vs long-term trust.