, no sophisticated system, no well - articulated ethics programme is going to make yourself any better. the self is an internal image, who you perceive yourself to be, a composite of your thoughts and beliefs. if that self does not change, then you will continue to act and feel as you did before. ” this is one way of looking at the whole problem of ethics. perhaps that is why universally economic agents went for some sort of a do - it - yourself philosophy in the past. however, questions relating to ethics in the wake of several corporate scandals the world over are being increasingly asked since the 1980s. over 500 business ethics courses are offered in the us and nearly all business schools teach ethics. as a reaction to cynicism schools of business and law are increasingly offering courses in ethics as if morality, like algebra, can be taught and applied. an article in the journal of economic literature with the title ‘ economics and contemporary moral philosophy ’ highlighted four aspects of the relationship between economics and moral philosophy. interestingly, one of the four relationships emphasizes how the moral beliefs of an organisation, be it a financial or a non - financial institution, influence its behaviour in the marketplace. evidently, by virtue of having fiduciary responsibilities bankers are naturally expected to readily understand what amartya kumar sen calls ‘ basic value judgement ’, that is what society regards as being good, right, fair and acceptable. the asian crisis amply demonstrated that banks and non - bank financial institutions cannot indefinitely overstep ethical values. as one central banker has put it the crisis ‘ increases the need for organisations to adhere to a strong set of values to steer them through the minefield of ethical choices with which they are faced as they make business decisions. it is also necessary to ensure that the behaviour of the organisation is in practice aligned with these values and that employees buy into them, so that the organisation actually practises what it preaches. ’ bankers occupy a position of trust. nearly two years ago, in one of my addresses i mentioned that good corporate citizenship and adherence to core ethical values form the basis of honest bankers. is it good, right and fair for a bank officer to accept or extort gifts in any form whatsoever in return for loans extended to borrowers or to cheat customers of banks? i do not believe that anyone of us should undergo a rigorous training in business ethics at harvard business school to answer this simple question. historical record reveals that mania engenders systematic misfeasance, mal

, le dalai lama de la transparence et l ’ apotre de la bonne governance. we have been urging all deposit taking institutions to enforce the guidelines. the guidelines are of international standards. once enforced, management of banks should be less apprehensive of frauds and unethical behaviour in their respective organisations. in the new banking bill we are introducing a penalty system. banks that fail to adhere to the rules of the game will be fined. i am delighted that new board of directors of your bank has decided to give training to the staff. i am given to understand that it is the first training programme organised for you all. let me wish you the very best of success.