Ethical banking practices in corporate settings have become an increasingly important topic in recent years, reflecting growing public concern about responsible business conduct. This theme has appeared in several IELTS Writing Task 2 questions, and its relevance is likely to increase in future exams. Based on past trends, we can expect to see questions related to corporate ethics, sustainable finance, and social responsibility in banking.
Let’s examine a relevant IELTS Writing Task 2 question that has appeared in recent tests:
Some people believe that banks should only consider profit when making business decisions. Others think banks have a responsibility to society as well. Discuss both views and give your opinion.
Analyzing the Question
This question addresses the role of banks in society and their responsibilities beyond profit-making. It requires candidates to:
- Discuss the view that banks should focus solely on profit
- Explore the perspective that banks have broader social responsibilities
- Present and justify their own opinion on the matter
Let’s look at sample essays for different band scores, starting with a high-scoring response.
Sample Essay 1 (Band 8-9)
In today’s interconnected global economy, the role of banks extends far beyond mere profit-generation. While some argue that financial institutions should prioritize earnings above all else, I firmly believe that banks have a crucial responsibility to society that must be balanced with their profit-seeking objectives.
Proponents of a profit-centric approach argue that banks, as businesses, are primarily accountable to their shareholders. They contend that by maximizing profits, banks can provide better services, invest in innovation, and contribute to economic growth. This perspective emphasizes the indirect benefits to society that arise from a robust and competitive banking sector. Moreover, supporters of this view might argue that it is not the role of private institutions to address social issues, but rather the responsibility of governments and non-profit organizations.
However, the opposing viewpoint, which I find more compelling, asserts that banks have a broader societal duty. Banks play a pivotal role in shaping economic landscapes and influencing social outcomes through their lending and investment practices. By incorporating ethical considerations into their decision-making processes, banks can contribute to sustainable development, reduce inequality, and promote financial inclusion. For instance, banks can offer microloans to underserved communities, invest in environmentally friendly projects, or implement fair lending practices that prevent discrimination.
How can ethical banking practices be promoted is a question that many financial institutions are grappling with today. I believe that a balanced approach, which considers both profit and social responsibility, is not only possible but necessary for long-term success. Banks that prioritize ethical practices often benefit from enhanced reputation, customer loyalty, and risk mitigation. Furthermore, by aligning their operations with societal values, banks can contribute to creating a more stable and equitable financial system that benefits all stakeholders.
In conclusion, while the profit motive is undeniably important for banks’ survival and growth, I argue that it should not be their sole consideration. The immense influence that banks wield in modern economies comes with a corresponding responsibility to society. By embracing this dual mandate, banks can foster sustainable growth, build trust with customers, and play a positive role in addressing pressing global challenges.
Ethical banking practices in corporate settings
Essay 1 Analysis (Band 8-9)
This essay demonstrates excellent qualities that justify a high band score:
Task Achievement: The essay fully addresses all parts of the task, discussing both viewpoints and clearly stating the writer’s opinion.
Coherence and Cohesion: Ideas are logically organized with clear progression throughout the essay. Paragraphs are well-linked, and cohesive devices are used effectively.
Lexical Resource: The essay uses a wide range of vocabulary with very natural and sophisticated control of lexical features. Examples include “interconnected global economy,” “pivotal role,” and “sustainable development.”
Grammatical Range and Accuracy: The essay displays a wide range of structures with full flexibility and accuracy. Complex sentences are used effectively, and there are no noticeable errors.
Development of Ideas: Each main point is well-developed with relevant supporting ideas and examples, demonstrating a sophisticated approach to the topic.
Sample Essay 2 (Band 6-7)
There is a debate about whether banks should only focus on making money or if they should also think about helping society. In my opinion, banks need to do both because they are important for the economy and people’s lives.
Some people think banks should just try to make as much profit as possible. They say this is good because it helps banks grow and offer better services to customers. For example, if a bank makes more money, it can open more branches or create new apps for online banking. This view says that banks are businesses, so they should act like businesses and try to earn money for their owners.
On the other hand, many people believe banks have a duty to help society too. This is because banks have a lot of power and can affect many people’s lives. If banks only care about profit, they might do things that harm communities or the environment. For instance, they might lend money to companies that pollute or refuse loans to poor people who need help. Banks that care about society might offer special loans to small businesses or support projects that help the environment.
I think banks should try to do both – make profit and help society. This is because banks need money to survive and grow, but they also need to be responsible. If banks only care about money, people might not trust them. But if they help society, more people will want to use their services. Also, by doing good things for society, banks can actually make more money in the long run because they will have a better reputation.
In conclusion, while making profit is important for banks, they should not forget about their impact on society. Banks should find ways to balance making money with helping communities and the environment. This approach will be better for everyone in the long term.
Essay 2 Analysis (Band 6-7)
This essay demonstrates good qualities that justify a band score of 6-7:
Task Achievement: The essay addresses all parts of the task, presenting both views and the writer’s opinion. However, the ideas could be more fully developed.
Coherence and Cohesion: The essay is generally well-organized with clear progression of ideas. Paragraphing is logical, but the use of cohesive devices could be more sophisticated.
Lexical Resource: There is a sufficient range of vocabulary for the task, with some attempts at less common words. However, the language sometimes lacks precision or sophistication.
Grammatical Range and Accuracy: The essay uses a mix of simple and complex sentence forms. There are some errors, but they do not impede communication.
Development of Ideas: Main ideas are relevant and supported, but the level of detail and explanation is not as thorough as in the higher band essay.
Key Vocabulary to Remember
Ethical banking (noun phrase) – /ˈeθɪkəl ˈbæŋkɪŋ/ – Banking practices that consider moral and social implications of financial decisions.
Corporate practices (noun phrase) – /ˈkɔːrpərət ˈpræktɪsɪz/ – The methods, policies, and procedures followed by a company in its business operations.
Social responsibility (noun phrase) – /ˈsoʊʃəl rɪˌspɒnsəˈbɪləti/ – An ethical framework suggesting that organizations have obligations to society beyond profit-making.
Sustainable development (noun phrase) – /səˈsteɪnəbəl dɪˈveləpmənt/ – Economic development that meets present needs without compromising future generations’ ability to meet their own needs.
Financial inclusion (noun phrase) – /faɪˈnænʃəl ɪnˈkluːʒən/ – The provision of affordable financial services to individuals and businesses who might otherwise be excluded from the traditional financial system.
Microloans (noun) – /ˈmaɪkrəʊləʊnz/ – Small loans typically given to support entrepreneurship and alleviate poverty.
Stakeholders (noun) – /ˈsteɪkhoʊldərz/ – Individuals or groups who have an interest in or are affected by an organization’s actions.
Risk mitigation (noun phrase) – /rɪsk ˌmɪtɪˈgeɪʃən/ – The process of reducing the impact of potential risks on an organization.
Conclusion
The topic of ethical banking in corporate practices is likely to remain relevant in future IELTS Writing Task 2 questions. To prepare effectively, consider practicing with similar topics such as:
- The role of businesses in addressing social issues
- Balancing profit and environmental responsibility
- The impact of corporate ethics on consumer behavior
Remember to structure your essays clearly, use a range of vocabulary and grammatical structures, and support your arguments with relevant examples. We encourage you to practice writing your own essay on this topic and share it in the comments section for feedback and discussion. This active practice is an excellent way to improve your IELTS Writing skills and prepare for the exam.