Ethical banking practices have become an increasingly important topic in recent years, reflecting growing concerns about financial responsibility and sustainability. This theme has appeared in several IELTS Writing Task 2 questions over the past few years, and its relevance is likely to continue in future exams. Based on past trends, we can expect to see questions related to ethical banking practices, corporate social responsibility in finance, or sustainable investment strategies.
One relevant question that has appeared in recent IELTS exams is:
Some people believe that banks should only provide financial services, while others argue that banks have a responsibility to promote ethical practices in their operations. Discuss both views and give your own opinion.
Let’s analyze this question and provide sample essays for different band scores.
Question Analysis
This question is asking you to discuss two contrasting views on the role of banks in society:
- Banks should focus solely on providing financial services
- Banks have a broader responsibility to promote ethical practices
You need to:
- Discuss both viewpoints
- Provide your own opinion
- Use examples to support your arguments
Remember to structure your essay clearly with an introduction, body paragraphs discussing each view, and a conclusion stating your opinion.
Sample Essay 1 (Band 8-9)
In today’s complex financial landscape, the role of banks extends far beyond mere monetary transactions. While some argue that banks should stick to their primary function of providing financial services, others contend that these institutions have a broader responsibility to promote ethical practices. In my opinion, banks must balance their financial obligations with ethical considerations to maintain public trust and contribute to societal well-being.
Those who believe banks should focus solely on financial services argue that this specialization allows for maximum efficiency and profitability. They contend that banks are not equipped to be moral arbiters and should leave ethical considerations to regulatory bodies and governments. For instance, a bank might be more effective at providing loans and managing investments if it doesn’t have to consider the ethical implications of every transaction. This view emphasizes the importance of banks as economic engines, driving growth and facilitating commerce.
On the other hand, proponents of ethical banking practices argue that financial institutions wield significant influence over economic systems and, therefore, have a responsibility to use that power ethically. They point to examples like the 2008 financial crisis, where unethical practices in the banking sector led to widespread economic devastation. By promoting ethical practices, such as transparent lending policies, responsible investment strategies, and support for sustainable businesses, banks can contribute to a more stable and equitable economy. This approach also aligns with growing consumer demand for socially responsible financial services.
In my view, the integration of ethical practices into banking operations is not only possible but necessary in our interconnected global economy. Banks can maintain their primary focus on financial services while also considering the broader impact of their actions. For example, a bank could implement rigorous environmental and social risk assessments for large-scale projects it finances, ensuring that its investments do not contribute to environmental degradation or human rights abuses. Similarly, offering preferential rates for green energy projects or microloans to underserved communities can align profit-making with positive societal impact.
In conclusion, while banks’ primary role is to provide financial services, they cannot ignore their broader impact on society. By embracing ethical practices, banks can enhance their reputation, mitigate risks, and contribute to sustainable economic development. The future of banking lies not in choosing between profitability and ethics, but in finding innovative ways to achieve both simultaneously.
Band 8-9 Essay Analysis
This essay demonstrates the qualities of a high-scoring IELTS Writing Task 2 response:
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Task Achievement: The essay fully addresses all parts of the task, discussing both viewpoints and clearly stating the writer’s opinion.
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Coherence and Cohesion: The essay is well-organized with clear paragraphing and effective use of linking words (e.g., “On the other hand,” “For instance,” “In conclusion”).
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Lexical Resource: The essay uses a wide range of vocabulary accurately and appropriately (e.g., “monetary transactions,” “moral arbiters,” “economic devastation”).
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Grammatical Range and Accuracy: The essay demonstrates a wide range of complex sentence structures with minimal errors (e.g., “By embracing ethical practices, banks can enhance their reputation, mitigate risks, and contribute to sustainable economic development.”).
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Development and Support: Each main idea is well-developed with relevant examples and explanations.
Sample Essay 2 (Band 6-7)
In today’s world, banks play a big role in our economy. Some people think banks should only focus on money matters, while others believe they should also promote good business practices. I think banks should do both because they have a big impact on society.
People who say banks should only provide financial services have some good points. They think banks are best at handling money and should stick to what they know. For example, banks are good at giving loans and helping people save money. If banks try to do too many things, they might not do their main job well. Also, some people argue that it’s not the bank’s job to decide what’s right or wrong in business.
However, there are also strong reasons why banks should care about ethics. Banks have a lot of power in the economy, so their actions can affect many people. If banks only care about making money and don’t think about ethics, it can cause problems like the big financial crisis in 2008. When banks act responsibly, it can help create a fairer economy. Many customers also want banks to be more socially responsible these days.
I believe banks can do both their main job and promote good practices. They can still focus on financial services but also think about how their actions affect society. For instance, a bank could choose not to lend money to companies that harm the environment. They could also offer better deals to businesses that help society, like renewable energy companies. This way, banks can make money and do good things at the same time.
In conclusion, while banks’ main job is to handle money, they should also think about ethics. By doing this, they can help create a better economy and society. It’s important for banks to find ways to be successful businesses while also being responsible.
Band 6-7 Essay Analysis
This essay demonstrates the characteristics of a Band 6-7 IELTS Writing Task 2 response:
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Task Achievement: The essay addresses all parts of the task, presenting both viewpoints and the writer’s opinion. However, the ideas could be more fully developed.
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Coherence and Cohesion: The essay has a clear structure with appropriate paragraphing. Some linking words are used (e.g., “However,” “For instance”), but they could be more varied.
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Lexical Resource: The vocabulary is adequate for the task, with some attempts at less common words (e.g., “renewable energy”). However, there is some repetition and the range could be broader.
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Grammatical Range and Accuracy: The essay uses a mix of simple and complex sentences with generally good control. There are some errors, but they do not impede communication.
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Development and Support: Main ideas are supported with examples, but they could be more specific and detailed.
Key Vocabulary
Here are some important vocabulary items from the essays, along with their definitions and pronunciations:
- ethical (adjective) /ˈeθɪkəl/ – morally correct or acceptable
- arbitrary (adjective) /ˈɑːrbɪtreri/ – based on random choice or personal whim, rather than reason or system
- transparent (adjective) /trænsˈpærənt/ – open to public scrutiny; easily understood
- sustainable (adjective) /səˈsteɪnəbl/ – able to be maintained at a certain rate or level
- mitigate (verb) /ˈmɪtɪɡeɪt/ – make less severe, serious, or painful
- innovative (adjective) /ˈɪnəveɪtɪv/ – featuring new methods; advanced and original
- profitability (noun) /ˌprɒfɪtəˈbɪləti/ – the degree to which a business or activity yields profit or financial gain
- interconnected (adjective) /ˌɪntərkəˈnektɪd/ – mutually connected or related
- degradation (noun) /ˌdeɡrəˈdeɪʃn/ – the process of becoming worse or less in quality, value, or character
- underserved (adjective) /ˌʌndərˈsɜːrvd/ – not provided with adequate services or facilities
In conclusion, the topic of ethical banking practices is likely to remain relevant in future IELTS Writing Task 2 questions. To prepare, practice writing essays on related themes such as corporate social responsibility in finance, sustainable investment strategies, or the role of financial institutions in addressing global challenges like climate change or inequality. Remember to structure your essays clearly, use a range of vocabulary and grammatical structures, and support your arguments with specific examples. Feel free to share your practice essays in the comments section for feedback and further discussion!