Business Ethics

Content1.0Introduction of the Companies and Industry............................1~21.1History (1)1.2Product and services........................................................1~22.0 Evaluation of business practices on ethical aspects................3~52.1Positive ethical aspect.....................................................3~42.2Negative ethical aspect (5)3.0Application of 4 relevant Ethical Theories in analysis............6~93.1Ethics of Right (6)3.2Ethics of Justice (7)3.3Utilitarianism (8)3.4Ethics of virtue (9)4.0References (10)1.0Introduction of the Companies and Industry1.1 HistoryBANK OF CHINA (BOC) found by Sun Yat-sen in Shanghai, which established in 1912, is one of China’s oldest banks. (bank of china, Retrieved on November 14, 2014, from: /aboutboc/ab1/)Since China's reform and opening up, BANK OF CHINA hold countries use foreign capital and advanced technology to speed up the economic development the historical opportunity, given full play to the unique advantages of foreign exchange operations for a long time, became the main channel of the nation's utilization of foreign capital. In August 2004, the BANK OF CHINA co. LTD. was founded. Between June and July, 2006, the BANK OF CHINA successively on the Hong Kong stock exchange and Shanghai stock exchange listed success, to become the first domestic "A + H" offering Chinese commercial Banks. In 2013, the BANK OF CHINA in global systemically important Banks again, become the emerging market economies in financial institutions within three consecutive years.1.2 Product and servicesBANK OF CHINA service as the main business of commercial bank, which are including company financial business, personal financial business, capital business, financial institutionsbusiness and so on.Company financial business is based on bank credit products, to provide customers with personalized and innovative financial services.Personal financial business mainly for personal financial needs of the customers, provide, including deposit, credit and other bank card service.Capital business value are including the local debt value, domestic and overseas financing of capital operation and management services.Financial markets business mainly to other global Banks, securities companies and insurance companies to provide international exchange, fund settlement, inter-bank lending and hosting and other comprehensive services.Financial institutions are for other global Banks, securities companies and insurance companies to provide such as inter-bank funds liquidation, and comprehensive services such as custody.On the BANK OF CHINA net silver in the enterprise introduced the business of paper pool, on the BANK OF CHINA enterprise net silver can help customers to centrally manage the paper, through the establishment of enterprise paper pool, will hold the bill "pooling" custody, convenient for daily paper management.(bank of china. Retrieved on July 04, 2014,from:/)2.0 Evaluation of business practices on ethical aspects2.1 Positive ethical aspectThe credibility and the resultsof the BANK OF CHINA, obtained from the industry, customers and authoritative media widely recognized as positive ethical aspects.(the positive ethical aspects in bank of china. Retrieved on 15 November 2014, from:/aboutboc/ab2/)Firstly, BANK OF CHINA is long-term adherence to ‘serve the society, contributing to society, return society’ of the concept of social responsibility work, actively participate in the construction of a harmonious society, for many years in against poverty, support education, cultural development has made a positive contribution. With the BANK OF CHINA in the aspect of corporate social responsibility in the outstanding performance won the ‘best cause marketing’ award on December, 2012. (the positive ethical aspects in Bank of China. Retrieved on 15 November 2014, from:/aboutboc/boccsr/201212/t20121224_2102672.html)Secondly, On June 25, the China Women's development foundation, China's public welfare institute hosted the ‘2013 Chinese female public welfare charity BBS’ held in Beijing. With the BANK OF CHINA for a long time in support of women's philanthropy, take care of female employees of outstanding performance won the ‘top ten women enterprise’ title. Chinese woman has held three sessions of the BBS of charity, aims to summarize the female public welfare philanthropy development achievements, continuous social cohesion strength, promote healthy development of Chinese female public charity. The BANK OF CHINA, 2012 donation to support the "mother's health express" project, which aims to help improve women's quality of life, the poor areas to promote the healthy development of women in China. (the positive ethical aspects in Bank of China. Retrieved on 15 November 2014, from: /aboutboc/boccsr/201307/t20130731_2389982.html)Thirdly, On November 12, the United Nations environment programme (unep) financial action mechanism of the ‘2013 global summit sustainable finance’ opening in Beijing, the BANK OF CHINA as a "green sponsors" sponsored the summit. The theme of the summit is ‘financing the future we want - China, emerging markets and global economy’, from the global financial, environmental, energy, research in areas such as more than 200 institutions of more than 400 senior representatives to attend. In order to reveal the summit ‘sustainable finance’ concept, the BANK OF CHINA as a ‘green sponsors’ through ‘carbon neutral’ wayto offset the carbon emissions on the summit, to forge a real zero emissions of green summit meeting. (the positive ethical aspects in Bank of China. Retrieved on 15 November 2014, from: /aboutboc/boccsr/201311/t20131112_2628932.html)Fourthly, on August 7, 2014, BANK OF CHINArolled out six measures to fully support YunNan LuDian earthquake disaster relief, to help the people in the disaster area to resume production as soon as possible life, and rebuild homeland.(1)Support for the social from all walks of life to provide LuDian all kinds of donations for earthquake relief and charity, set up to pay the green channel, to ensure that the aid money allocated in place as required.(2)In the area of the business outlets in YunNan province, the BANK OF CHINA set LuDian earthquake donation green channel, from the special account for earthquake relief donation remittance fee, for donation willingness of customers to guide work and prompt.(3)It try our best to meet the demand of the disaster area of financial services, ensure smooth hui road, security and timely transfer of funds to the account.(4)To ensure the security of customer information. Rapidly develop survey affected the financial interests of the masses, tracking and confirmation work, properly handle the query to verify and protect customers all kinds of business data information, to ensure information security.(5)Reserved for the disaster area to implement credit tilt, credit scale actively support post-disaster reconstruction. To properly handle the disaster loans, can't repay on time due to the situation of various kinds of loan units and individuals that do not penalty, do not make bad record, allowing reasonable loan roll over.(6)Establish rapid information communication mechanism, adhere to the system of disaster relief information during daily, in a timely manner to understand the disaster area residents of financial services demand, policy advice and solutions, to solve special requirements in the disaster areas of financial services. (the positive ethical aspects in Bank of China. Retrieved on 15 November 2014, from:/aboutboc/boccsr/201408/t20140807_3728756.html)2.2 Negative ethical aspectBANK OF CHINA has many positive ethical aspects, but also have several negative ethical aspects. There are four negative ethical examples following:Firstly, The BANK OF CHINA, computer department in Sydney programmer illegal program, increase the amount of bank account servicing automatically every day, or more have informed to close the customer's deposit, then turned to his own account, from corruption and a $25545 (about RMB 80000 yuan). (the negative ethical aspects in Bank of China. Retrieved on 15 November 2014, from: /ziliao/article-119671.html)Secondly, In March 1988, the ChengDu BANK OF CHINA computer operator and secondments, tamper with the computer program took 870000 yuan; Shortly after, the relevant departments of the investigation of the case at the same time, and eliminate the evidence by computer, trying to cover-up. (the negative ethical aspects in Bank of China. Retrieved on 15 November 2014, from: /ziliao/article-119671.html)Thirdly, the person who had been listed as no. 6 and 7 of Gehry and ORR tora by interpol international terrorist organizations, Italy with the computer system and the broad west bank about $90 million, moved to Switzerland, free and unfettered in Latin America, causing Banks fail, bank President committed suicide. The United States twice a computer engineer to inspect the name, with a bank electronic transfer chamber, trusted, asked me to consult, sideto write down important password; Then make a phone call from outside, claim to be governor of the bank, need to turn to Zurich bank $10.2 million, the salesman should do; Later, the fly to Zurich, bought with the diamond, home sales, until failure was arrested, the bank. (the negative ethical aspects in Bank of China. Retrieved on 15 November 2014, from: /ziliao/article-119671.html)Fourthly, On July 9, 2014, CCTV exposed blatantly false money laundering, the BANK OF CHINA said that the BANK OF CHINA to the customer, and immigration intermediary collusion, help customer fraud money laundering. No matter the customer money source, can help the abroad. (the negative ethical aspects in Bank of China. Retrieved on 15 November 2014, from:/14/0709/16/A0NPUNLO00254TFQ.html)3.0 Application of 4 relevant Ethical Theories in analysis3.1 Ethics of rightNature rights are certain basic important, inalienable entitlements that should be respected and protected in each person’s action-rights to life, freedom, and property.Legal right refers to an entitlement that derives from a legal system that permits or empowers a person to act in a specified way or that requires others to act in certain ways toward that person. Legal rights confer entitlements only where the particular legal system is in force.Moral (human) rights means that human beings everywhere possess to an equal extent simply by virtue of being human beings. Moral rights confer entitlements to all people regardless of their legal system.BANK OF CHINA has the ethical of right. For example: Buying and selling of foreign currency option is a kind of right of business. The rights of the buyer to pay a certain amount of premium, shall have the right to indefinite time in the future according to the agreed rate to the rights of the seller to buy or sell contract amount of foreign currency, and the rights of the buyer shall have the right to not perform the sale and purchase agreement.If the company import and export trade payment under the contract in the future one day, in order to avoid exchange rate volatility to bring loss, and hope to be able to get the benefits of currency fluctuations. After the customer pay a certain amount of premium, shall have the right to the specific time in the future according to the amount of the prescribed exchange rates to the bank to buy a currency and sell another currency, or customers through put option in the trading day, get the premium income.Currency options the buyer can choose agreed exchange rate and the spot exchange rate when due to take delivery of the two is more conducive to their own exchange rate level, currency options of the seller can get premium income in the beginning of trading. Banks also can undertake options combination, for clients to provide "zero premium" products, also can achieve the needs of the foreign exchange hedging, different period will also be the option to buy and sell combination, meet the requirements of customers on time match. (the ethics of right in Bank of China. Retrieved on 15 November 2014, from:/search/sitesearch/index.jsp)3.2 Ethics of justiceJustice can be defined as the simultaneously fair treatment of individuals in a given situation with the result that everybody gets what they deserve. There are three types of justice: distributive justice, retributive justice and compensatory justice.To protect the right of human and keep the justice of banks in China, new laws approved in 2014.On January 1, 2004, the new law authorized the China banking regulatory commission may punish those poorly run Banks and bank managers. In practice, the China banking regulatory commission will take some time to implement the management goal.Since set up the China banking regulatory commission, on the bank management is the most important change is the introduction of a series of regulations to manage the capital adequacy ratio of commercial Banks, which started in March 1, 2004.According to the new rules, Banks must put their own capital adequacy ratio remain at 8%. Core capital, including securities, cash reserves and retained earnings must reach at least 4% of risk-weighted assets. All of the BANK OF CHINA must be before January 1, 2007 to achieve the above requirements.The China banking regulatory commission of state-owned enterprises has also changed the bank loan and loan guarantee risk weighted. In essence, this will deter Banks from lending to state-owned enterprises, because of these loans will have to charge with the congruent not discounted price to risky assets.The China banking regulatory commission also asked, to the end of 2005, the bank must cancel the allowance for loan loss at least equal to that of non-performing loans 80% of the term. (the ethics of justice in Bank of China. Retrieved on 15 November 2014, from:/aboutboc/boccsr/201408/t20140806_3721113.html)3.3 UtilitarianismUtilitarianism means that an action is right if it leads to the most happiness for the greatest number of persons.In order to adapt to the needs of customers deal with letter of guarantee business, China bank settlement business department close cooperation, hand in hand with information science and technology, and other departments, has successfully completed the letter of guarantee business system server upgrade, improve obviously the server configuration, greatly improved its service function. It is understood that this is the first production in the domestic industry application of letter of guarantee business systems.This guarantee business system and put into operation for the BANK OF CHINA customers from all walks of life to bring great convenience, not only greatly shortens the time of guarantee business to accept the bid for the customer, sign up for the precious time, and powerful query function through the guarantee business system, the customer will be detailed to the open letter of guarantee for a period of time the number, amount, and status, and guarantee the balance on a certain point, for the enterprise to effectively control risk guarantee business provides convenient.BANK OF CHINA attaches great importance to the financial IC card business, overall layout, and actively explore and realize the scale growth in a relatively short time. By the end of 2012, the BANK OF CHINA has issued all kinds of financial IC card more than 1700 pieces, the issuing scale and scale of electronic cash transactions are the market leader.Financial IC card information storage capacity than a magnetic stripe card, at the same time have the computing power. Based on the financial IC card transaction security mechanism, make it more difficult to duplicate and forge, people’s capital security is greatly increased, thus effectively prevent false card fraud. IC card can also store a variety of information, such as entrance guard, bus, the member will set all kinds of industry applications on a card, to implement a card holders, eliminating the cardholder carry multiple CARDS is cumbersome. Financial IC card also has the function of electronic cash by non-contact accepted, easy to operate, clearing faster than a magnetic stripe card, in the fast food, such as traffic, cinemas have higher request for speed field, have extremely strong practical. (the utilitarianism in Bank of China. Retrieved on 15 November 2014, from:/search/sitesearch/index.jsp)3.4 Ethics of virtueAn ethics of virtue is based on the idea that a morally right act in some situation that calls for a moral decision is what a virtuous person would do in that situation. There are certain characteristics which are virtues. People possessing these virtues is what makes one moral, one's actions are a reflection of their inner morality.The BANK OF CHINA was awarded the China women's development foundation "mother ten years to promote health express award", "mother's health express" in recognition of the BANK OF CHINA to support sponsorship program, actively help improve women's quality of life, the poor areas to promote the healthy development of women in China.In 2013, the BANK OF CHINA for shandong, anhui, hubei and other places in poor regions donated 48 mobile medical car, to take health for poor women. The BANK OF CHINA will be adhering to the "bank bear social responsibility, to do the best" concept, continue to play a large state-owned commercial Banks in supporting the social public welfare undertakings, the important role of building a harmonious society."Mother's health express" is the Chinese women's development foundation in the large-scale public welfare projects were launched in 2003, to "send health concept, send health knowledge, send health service" for the purpose, will flow medical car free of charge donated to poor areas, for local women's health check, drug and health data distribution, etc. For a decade, "mother's health express delivery quantity multiplied, expanding geographical coverage, at the end of 2013," mother's health express "issued 2023, covering 30 provinces , benefit from 39 million. (the ethics of virtue in Bank of China. Retrieved on 15 November 2014, from: /aboutboc/boccsr/201312/t20131227_2761547.html)4.0 ReferencesⅠ. Website1. bank of china, Retrieved on November 14, 2014, from: /aboutboc/ab1/2. bank of china headquarter building. Retrieved on July 04, 2014, from:/3. the positive ethical aspects in bank of china. Retrieved on 15 November 2014, from: /aboutboc/ab2/4. the positive ethical aspects in Bank of China. Retrieved on 15 November 2014, from: /aboutboc/boccsr/201212/t20121224_2102672.html5. the positive ethical aspects in Bank of China. Retrieved on 15 November 2014, from: /aboutboc/boccsr/201307/t20130731_2389982.html6. the positive ethical aspects in Bank of China. Retrieved on 15 November 2014, from: /aboutboc/boccsr/201311/t20131112_2628932.html7. the positive ethical aspects in Bank of China. Retrieved on 15 November 2014, from: /aboutboc/boccsr/201408/t20140807_3728756.html8. the negative ethical aspects in Bank of China. Retrieved on 15 November 2014, from: /ziliao/article-119671.html9. the negative ethical aspects in Bank of China. Retrieved on 15 November 2014, from: /14/0709/16/A0NPUNLO00254TFQ.html10. the ethics of right in Bank of China. Retrieved on 15 November 2014, from:/search/sitesearch/index.jsp11. the ethics of justice in Bank of China. Retrieved on 15 November 2014, from:/aboutboc/boccsr/201408/t20140806_3721113.html12. the utilitarianism in Bank of China. Retrieved on 15 November 2014, from:/search/sitesearch/index.jsp13. the ethics of virtue in Bank of China. Retrieved on 15 November 2014, from:/aboutboc/boccsr/201312/t20131227_2761547.html)Ⅱ. Book with one author1. Joseph W. Weiss (2009). Business Ethics -- A Stakeholder & Issues Management Approach with cases. (5th edition). Published by United States.2. Manuel G. Velasquez (2012). Business Ethics -- CONCEPT AND CASES. (7th edition). Published by United States and Canada.10。