Bank Manager's Behavior: Ethical Evaluation

Ethical Issues Involved

The core ethical issues at play are:

• Conflict of Interest: The manager’s personal relationship with the colleague creates a conflict between their duty to the bank and their desire to help a friend.
• Integrity and Honesty: Using funds from a dormant account without proper authorization and maintaining secrecy compromises the bank’s integrity and lacks transparency.
• Accountability and Transparency: The manager bypassed established procedures and concealed the transaction, undermining accountability.
• Fiduciary Duty: The bank has a fiduciary duty to its account holders, including the owner of the dormant account, which was potentially violated.
• Rule of Law: Circumventing established banking regulations and procedures is a breach of the rule of law.

Analyzing the Manager’s Actions through Ethical Lenses

Utilitarianism

From a utilitarian perspective, the manager’s action could be argued as justifiable if the benefit (saving a life) outweighs the harm (potential misuse of funds, breach of trust). However, this calculation is problematic. The long-term consequences of eroding trust in the banking system could be far-reaching and outweigh the immediate benefit to the colleague’s father. Furthermore, it sets a dangerous precedent.

Deontology (Duty Ethics)

Deontology emphasizes moral duties and rules. The manager had a clear duty to uphold the bank’s policies and procedures, maintain transparency, and act with integrity. Facilitating the unauthorized release of funds directly violates these duties, regardless of the good intentions. Immanuel Kant’s categorical imperative suggests that the manager’s action cannot be universalized – if all bank managers acted similarly, the system would collapse.

Virtue Ethics

Virtue ethics focuses on the character of the moral agent. While compassion is a virtue, the manager’s actions demonstrate a lack of prudence, honesty, and fairness. A virtuous bank manager would have explored legitimate avenues for assistance, such as suggesting charitable organizations or loans, rather than resorting to a clandestine and potentially illegal act.

Consequences of the Manager’s Actions

• Erosion of Trust: The incident, if discovered, could severely damage the bank’s reputation and public trust.
• Legal Ramifications: The manager could face legal consequences for unauthorized disbursement of funds and breach of fiduciary duty.
• Moral Hazard: The action creates a moral hazard, potentially encouraging others to seek similar unauthorized assistance.
• Unfairness to Other Account Holders: The owner of the dormant account is potentially deprived of their funds, and other account holders may be exposed to increased risk.

Alternative Courses of Action

The manager could have:

• Advised the colleague to explore legitimate financial assistance options, such as loans or charitable organizations.
• Informed higher authorities about the situation and sought guidance on how to assist the colleague within the bounds of the law and bank policy.
• Organized a collection drive among colleagues to contribute towards the medical expenses.