This document discusses ethical business practices in the banking and consumer goods industries. It outlines some unethical practices in these industries, such as usurious banking, financing arms trades, false advertising, and poor treatment of employees. Regulations implemented to curb these practices are discussed, including Basel III, the UK Banking Reform Act, and acts regarding consumer rights and unfair trading. However, the document notes that unethical behavior still remains and that regulation alone is not enough to create an ethical business culture. Alternatives to regulation like internal codes of values, stakeholder pressure, and industry watchdogs are proposed in addition to regulation. In conclusion, the document questions if ethical culture can only be achieved through strong regulation or if alternatives are also needed

1. Presented by:
Aby, Alex, Anca, Gevanya, Simrun, Tabitha
‘Ethical business culture can only be
created by strong regulation’

2. BRIEF OVERVIEW
 Our definition of Business Ethics
 Two Sectors: Banking and Consumer Goods & Retail
 Alternative Methods of Regulation
 Are alternative methods more effective than strong
regulations?

3. WHAT IS ETHICAL BUSINESS?
 Businesses that take into consideration:
 Environmental impact
 Commitment to community
 Diversity
 Morally Correct

4. A PROPOSED ETHICS
TEST
 Transparency
 Effect
 Fairness

5. ETHICAL BUSINESS CULTURES?
- Banking -

6. UNETHICAL BANKING PRACTICES
 Usurious practices
 Speculative Banking
 Financing Arms Manufacturing and Trade
 Financing and Supporting Totalitarian
Regimes
 Environment/Ecological Impact

7. SO WHAT'S BEEN DONE ?
 Basel III (Third Basel Accord) – 2009
 Banking Structural Reform – 2012/2014
 The UK Banking Reform/The Financial
Services Act – 2013
 A Financial Policy Committee (FPC)
 A Prudential Regulatory Authority (PRA)
 A Financial Conduct Authority (FCA)

8. HOW EFFECTIVE IS IT?
 Issues of unethical and overly risky
behaviour remain
 Increased evidence of unethical behaviour
 Regulation influence culture, but isn't
sufficient to creating ethical business culture.
 'Soft' issues are vital
 Bank leaders need to intervene

9. ETHICAL BUSINESS CULTURES?
- Consumer Goods & Retail -

10. UNETHICAL RETAIL
PRACTICES
 Environmental Impact
 Sourcing of Products
 Treatment of Employees
 Impact on the ‘Gig-Economy’
 False Advertising

11. SO WHAT'S BEEN DONE ?
 Sales of Goods Act 1979
 Consumer Rights Act 2015
 Consumer Protection from
Unfair Trading Regulations 2008

12. ANY ALTERNATIVES TO REGULATIONS?
 Internal Codes of Values
 Stake-holder pressure
 Stronger Corporate Governance
 Industry Watch Dogs
 Ombudsman

13. CONCLUSION
 Can ethical business culture only be created by
strong regulation?
 Alternatives required if an ethical business
culture is to be maintained.

14. Thank you!
ANY QUESTIONS?