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Ethical Banking in UK An Investigation into Its Performance as Measure of Its Rightness for Clients and Soundness as a Business Practice

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In fact, major banks and financial institutions around the world were reported to have suffered losses reaching $435 billion in July 2008, with many banks experiencing severe liquidity problems. Is it possible that ethical banking shields its practitioners from negative external factors We aim to find out the answer to this question?
Business ethics, in general, is the application of moral principles in the making of business decisions (Rushton, 2002)), such that it places a premium on social responsibility. This responsibility represents the positive actions or responses that a company takes to fulfill its responsibilities towards its stakeholders, to the environment and to society as a whole. In the view of some economists, however, there is one and only social responsibility of business: to use its resources and engage in activities designed to increase its profits. Thus, when firms experience resource shortages as to threaten their very existence, they attack this problem by cheating on their social responsibility. …
That way, the firms give the false impression that they comply with the rules. To address internal resource shortages, such as inadequate capacity and expertise, they overestimate costs, falsify training records, pay excessive compensation and give undeserved promotions. To address external shortages, such as lack of raw materials, they arrange unethical deals with suppliers or service providers. These activities are taboo to ethical banks.
2.2 Objectives
(1) Measure the performance of ethical banks in economic terms to see if it is a feasible or reasonable line of business.
(2) Observe how ethical banks compete with conventional banks in terms of profitability, size of clients and quality of service.
(3) Discover the reasons that made the owners of ethical banks decide to go into this line of banking.
Business ethics, in general, is the application of moral principles in the making of business decisions (Rushton, 2002)), such that it places a premium on social responsibility. This responsibility represents the positive actions or responses that a company takes to fulfill its responsibilities towards its stakeholders, to the environment and to society as a whole. In the view of some economists, however, there is one and only social responsibility of business: to use its resources and engage in activities designed to increase its profits.