Abstract:
Purpose
The dissertation aims to determine the ethics of a commercial banking activity
encompassing various social, environmental, and economic practices. Banking
institutions often play a leading role in financing numerous projects, whose paradigms
are constantly being updated due to external phenomena, such as sudden changes in
financial and economic markets; globalization; global financial crises; development and
advancement of information and communication technologies (I.C.T.); greater
transparency in the relationship between banks; and other changes in the environment,
involving governments, customers, community, employees and shareholders.
Methodology & Design
The study follows a qualitative approach collecting interviews from 15 banking
executives in Pakistan to determine how ethical practices influence the banking sector's
profits.
Findings
Findings show that the ethical behavior of banks directly influences the profit margin in
Pakistan. However, the commercial bank requires its management to deploy ethical
principles and standards to support its practices in accomplishing its targets.
Limitations
The study has worked with qualitative data collection method; however, it would be
beneficial for the study it is worked with a mixed approach to use statistics.
Recommendations
The banks in Pakistan must deploy a differentiation strategy to increase the product line
to manage its profits and accomplish their business targets.
