Tuesday, August 6, 2019

Banking Industry Essay Example for Free

Banking Industry Essay The Banking Industry was once a simple and reliable business that took deposits from investors at a lower interest rate and loaned it out to borrowers at a higher rate. However deregulation and technology led to a revolution in the Banking Industry that saw it transformed. Banks have become global industrial powerhouses that have created ever more complex products that use risk and securitisation in models that only PhD students can understand. Through technology development, banking services have become available 24 hours a day, 365 days a week, through ATMs, at online bankings, and in electronically enabled exchanges where everything from stocks to currency futures contracts can be traded . The Banking Industry at its core provides access to credit. In the lenders case, this includes access to their own savings and investments, and interest payments on those amounts. In the case of borrowers, it includes access to loans for the creditworthy, at a competitive interest rate. Banking services include transactional services, such as verification of account details, account balance details and the transfer of funds, as well as advisory services, that help individuals and institutions to properly plan and manage their finances. Online banking channels have become key in the last 10 years. The collapse of the Banking Industry in the Financial Crisis, however, means that some of the more extreme risk-taking and complex securitisation activities that banks increasingly engaged in since 2000 will be limited and carefully watched, to ensure that there is not another banking system meltdown in the future. Mortgage banking has been encompassing for the publicity or promotion of the various mortgage loans to investors as well as individuals in the mortgage business. Online banking services has developed the banking practices easier worldwide. Banking in the small business sector plays an important role. Find various banking services available for small businesses. Management Management in all business and organizational activities is the act of getting people together to accomplish desired goals andobjectives using available resources efficiently and effectively. Management comprises planning, organizing, staffing, leading or directing, and controlling an organization (a group of one or more people or entities) or effort for the purpose of accomplishing a goal.Resourcing encompasses the deployment and manipulation of human resources, financial resources, technological resources, andnatural resources. Since organizations can be viewed as systems, management can also be defined as human action, including design, to facilitate the production of useful outcomes from a system. This view opens the opportunity to manage oneself, a prerequisite to attempting to manage others. Basic functions Management operates through various functions, often classified as planning, organizing, staffing, leading/directing, controlling/monitoring and motivation. * Planning: Deciding what needs to happen in the future (today, next week, next month, next year, over the next five years, etc.) and generating plans for action. * Organizing: (Implementation)pattern of relationships among workers, making optimum use of the resources required to enable the successful carrying out of plans. * Staffing: Job analysis, recruitment and hiring for appropriate jobs. * Leading/directing: Determining what must be done in a situation and getting people to do it. * Controlling/monitoring: Checking progress against plans. * Motivation: Motivation is also a kind of basic function of management, because without motivation, employees cannot work effectively. If motivation does not take place in an organization, then employees may not contribute to the other functions (which are usually set by top-level management). Basic roles * Interpersonal: roles that involve coordination and interaction with employees. * Informational: roles that involve handling, sharing, and analyzing information. * Decisional: roles that require decision-making. Management skills * Political: used to build a power base and establish connections. * Conceptual: used to analyze complex situations. * Interpersonal: used to communicate, motivate, mentor and delegate. * Diagnostic: ability to visualize most appropriate response to a situation. * Technical: Expertise in ones particular functional area.. Business Ethics Business ethics (also corporate ethics) is a form of applied ethics or professional ethics that examines ethical principles and moral or ethical problems that arise in a business environment. It applies to all aspects of business conduct and is relevant to the conduct of individuals and entire organizations. Business ethics has both normative and descriptive dimensions. As a corporate practice and a career specialization, the field is primarily normative. Academics attempting to understand business behavior employ descriptive methods. The range and quantity of business ethical issues reflects the interaction of profit-maximizing behavior with non-economic concerns. Interest in business ethics accelerated dramatically during the 1980s and 1990s, both within major corporations and within academia. For example, today most major corporations promote their commitment to non-economic values under headings such as ethics codes and social responsibility charters. Adam Smith said, People of the same trade seldom meet together, even for merriment and diversion, but the conversation ends in a conspiracy against the public, or in some contrivance to raise prices.[1] Governments use laws and regulations to point business behavior in what they perceive to be beneficial directions. Ethics implicitly regulates areas and details of behavior that lie beyond Business ethics reflects the philosophy of business, one of whose aims is to determine the fundamental purposes of a company. If a companys purpose is to maximize shareholder returns, then sacrificing profits to other concerns is a violation of its fiduciary responsibility. Corporate entities are legally considered as persons in USA and in most nations. The corporate persons are legally entitled to the rights and liabilities due to citizens as persons. Economist Milton Friedman writes that corporate executives responsibility generally will be to make as much money as possible while conforming to their basic rules of the society, both those embodied in law and those embodied in ethical custom Friedman also said, the only entities who can have responsibilities are individuals A business cannot have responsibilities. So the question is, do corporate executives, provided they stay within the law, have responsibilities in their business activities other than to make as much money for their stockholders as possible? And my answer to that is, no, they do not. A multi-country 2011 survey found support for this view among the informed public ranging from 30 to 80%. Duska views Friedmans argument as consequentialistrather than pragmatic, implying that unrestrained corporate freedom would benefit the most in long term. [ Similarly author business consultant Peter Drucker observed, There is neither a separate ethics of business nor is one needed, implying that standards of personal ethics cover all business situations. However, Peter Drucker in another instance observed that the ultimate responsibility of company directors is not to harm—primum non nocere. Another view of business is that it must exhibit corporate social responsibility (CSR): an umbrella term indicating that an ethical business must act as a responsible citizen of the communities in which it operates even at the cost of profits or other goals.In the US and most other nations corporate entities are legally treated as persons in some respects. For example, they can hold title to property, sue and be sued and are subject to taxation, although their free speech rights are limited. This can be interpreted to imply that they have independent ethical responsibilities. Duska argues that stakeholders have the right to expect a business to be ethical; if business has no ethical obligations, other institutions could make the same claim which would be counterproductive to the corporation. Ethical issues include the rights and duties between a company and its employees, suppliers, customers and neighbors, its fiduciaryresponsibility to its shareholders. Issues concerning relations between different companies include hostile take-overs and industrial espionage. Related issues include corporate governance;corporate social entrepreneurship; political contributions; legal issues such as the ethical debate over introducing a crime of corporate manslaughter; and the marketing of corporations ethics policies.According to IBE/ Ipsos MORI research published in late 2012, the three major areas of public concern regarding business ethics in Britain are executive pay, corporate tax avoidance and bribery and corruption.

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