Chapter 54: Work Ethics and the Workplace (JAIIB – Paper 2)
1. Which of the following best defines "Work Ethics"?
A. Rules framed by RBI for employee conduct
B. Following only the company’s written code of conduct
C. Achieving maximum profit at any cost
D. A set of moral principles and values guiding behaviour at work
Work ethics refers to a set of moral values and principles such as honesty, responsibility, discipline, and fairness that guide behaviour in the workplace.
2. The concept "Something Bigger Than the Self" in work ethics emphasizes:
A. Giving priority only to personal growth
B. Working with a sense of responsibility towards the organization and society
C. Ignoring teamwork to focus on self-achievement
D. Achieving success without considering ethics
"Something Bigger Than the Self" means employees look beyond personal gain and align their actions with the organization’s goals, customer trust, and social responsibility.
3. Which of the following is NOT a benefit of ethical behaviour at the workplace?
A. Encourages corruption and favoritism
B. Enhances trust between employees and management
C. Improves organizational reputation
D. Boosts employee morale and productivity
Ethical behaviour never encourages corruption. Instead, it builds trust, improves reputation, and increases employee motivation and loyalty.
4. A bank employee refuses a bribe from a borrower and reports the attempt to higher authorities. This act is an example of:
A. Workplace politics
B. Self-interest
C. Ethical behaviour at the workplace
D. Conflict of interest
Refusing unethical practices like bribery reflects strong work ethics and contributes to a healthy and trustworthy work environment.
5. Which of the following case best reflects the importance of ethical behaviour?
A. Employees focusing only on monthly targets regardless of customer interest
B. A bank ensuring full disclosure of loan terms to customers
C. Staff ignoring customer complaints to save time
D. An officer misusing customer data for personal gain
Disclosing complete loan terms shows transparency and fairness, which are essential aspects of workplace ethics and help build customer trust.
6. Which of the following is a key characteristic of an ethical workplace?
A. Transparency and fairness in decision-making
B. Favouritism in promotions
C. Ignoring employee grievances
D. Tolerating corruption for business growth
Ethical workplaces are recognised by fairness, transparency, respect, and integrity in all dealings, which build trust among employees and customers.
7. Which of the following signals may indicate an unethical workplace?
A. Equal opportunity policies
B. Whistle-blower protection
C. Regular compliance training
D. Lack of transparency and frequent ethical violations
Unethical workplaces often show lack of transparency, tolerance of misconduct, and disregard for rules, which damage culture and reputation.
8. Which of the following is NOT a common cause of unethical behaviour at the workplace?
A. Pressure to achieve unrealistic targets
B. Lack of proper supervision
C. Strong culture of accountability and transparency
D. Absence of strict disciplinary actions
A strong culture of accountability and transparency prevents unethical behaviour, while the other options are causes that promote it.
9. An employee manipulates customer signatures to speed up loan disbursement. Which cause of unethical behaviour does this represent?
A. Proper ethical training
B. Pressure of performance and target achievement
C. Whistle-blower encouragement
D. Culture of transparency
Target pressure is a major reason employees sometimes bypass ethical norms, which is why balanced targets and ethical monitoring are necessary.
10. What is an effective remedy for reducing unethical behaviour in organizations?
A. Ignoring minor violations to save time
B. Focusing only on profit maximization
C. Establishing a strong code of ethics with strict enforcement
D. Discouraging whistle-blowers to avoid conflicts
A clear and enforced code of ethics, combined with awareness programs and protection for whistle-blowers, helps reduce unethical practices.
11. Which of the following best describes “conducting personal business during office time”?
A. Attending official client meetings
B. Completing pending office reports
C. Responding to customer queries
D. Using office hours for private business or personal tasks
Conducting personal business during office hours means misusing official time and resources for personal gain, which violates workplace ethics.
12. Why is conducting personal business during office time considered unethical?
A. It reduces personal freedom of employees
B. It misuses organizational resources and lowers productivity
C. It promotes work-life balance
D. It increases efficiency of employees
Personal work during office time diverts attention, misuses company resources, and decreases productivity, hence considered unethical.
13. Which of the following is an example of taking credit for others’ work?
A. A manager praising a team member for innovative ideas
B. An employee acknowledging peer contributions in a report
C. A senior presenting a subordinate’s project as their own
D. A staff member assisting colleagues in completing tasks
Taking undue credit for someone else’s efforts is unethical as it demotivates employees and damages trust within the workplace.
14. What is one major negative impact of managers taking credit for subordinates’ work?
A. It lowers employee morale and discourages innovation
B. It strengthens teamwork and cooperation
C. It motivates employees to work harder
D. It increases organizational transparency
When employees see their efforts unacknowledged, morale drops, leading to reduced motivation, innovation, and long-term loyalty.
15. Which ethical practice can prevent issues like taking credit for others’ work?
A. Assigning all recognition only to managers
B. Ignoring individual contributions
C. Promoting favoritism in recognition
D. Ensuring fair acknowledgement of each employee’s contribution
Fair acknowledgement and recognition of contributions encourage trust, motivation, and a positive workplace culture.
16. Which of the following best describes an "ethical lapse" in an organization?
A. Following company policies strictly
B. A failure to adhere to ethical standards in a given situation
C. Transparent disclosure of financial reports
D. Promoting fair competition among employees
An ethical lapse occurs when an individual or organization fails to follow ethical principles, often leading to misconduct or loss of trust.
17. How does organizational culture influence ethical behaviour?
A. Culture has no role in ethics
B. Employees act ethically only because of laws
C. Ethical behaviour depends solely on personal values
D. A strong ethical culture promotes integrity, transparency, and accountability
Organizational culture shapes employee behaviour. A culture that rewards honesty and accountability discourages unethical actions.
18. Which of the following is an example of an ethical lapse in banking?
A. Deliberately mis-selling financial products to customers
B. Properly explaining loan terms before sanction
C. Following fair lending practices
D. Transparent disclosure of service charges
Mis-selling or misleading customers is an ethical lapse because it violates trust and can lead to reputational as well as financial risks.
19. Which of the following is a key principle of the ethics of a banker?
A. Using customer information for personal gain
B. Ignoring confidentiality when convenient
C. Maintaining confidentiality and integrity in all dealings
D. Prioritizing profit over customer trust
Banker’s ethics rest on confidentiality, integrity, and fairness to maintain customer trust and safeguard the financial system.
20. A banker is offered a gift by a borrower to expedite loan approval. As per banking ethics, what should the banker do?
A. Accept the gift as a goodwill gesture
B. Politely refuse the gift and follow due process
C. Delay the loan approval until higher bribes are offered
D. Accept the gift but disclose it later
Accepting gifts compromises impartiality. The ethical response is to refuse and continue the loan process based on merit and policy guidelines.
21. What does whistleblowing in banks mean?
A. Reporting only customer complaints
B. Reporting one’s own mistakes to management
C. Reporting unethical or illegal activities within the bank to the concerned authority
D. Sharing confidential information with competitors
Whistleblowing is the act of an employee exposing unethical, illegal, or fraudulent practices within the organization to ensure accountability.
22. Which of the following is a key benefit of whistleblowing in banks?
A. Prevents fraud and strengthens ethical culture
B. Encourages misuse of confidential data
C. Promotes favouritism in promotions
D. Creates lack of trust among employees
Whistleblowing helps detect and prevent frauds, ensures compliance with laws, and builds a transparent organizational culture.
23. Which law in India provides protection to whistleblowers?
A. Indian Penal Code, 1860
B. Banking Regulation Act, 1949
C. RBI Act, 1934
D. Whistle Blowers Protection Act, 2014
The Whistle Blowers Protection Act, 2014, provides a legal framework in India to protect individuals reporting corruption or misuse of power in public organizations.
24. In India, which authority has been designated to receive whistleblower complaints related to corruption in public sector banks?
A. SEBI
B. Central Vigilance Commission (CVC)
C. Ministry of Finance
D. Reserve Bank of India
The Central Vigilance Commission (CVC) has been empowered to receive complaints from whistleblowers regarding corruption in public sector banks and government bodies.
25. What protection is generally ensured under whistleblower policies?
A. Promotion and financial incentives
B. Exemption from office duties
C. Protection against victimization or retaliation
D. Automatic transfer to a new branch
Whistleblower policies protect employees from victimization, harassment, or retaliation when they report genuine ethical or legal violations.
