Banking sector’s social responsibility has become an increasingly important topic in IELTS Writing Task 2 examinations. According to recent analysis of past IELTS tests, questions about ethical banking and corporate social responsibility have appeared multiple times since 2019, particularly in countries like importance of ethical banking practices today. Let’s examine a common question type on this topic.
Task Analysis
Some people believe that banks should prioritize social responsibility when making lending decisions, even if it means lower profits. To what extent do you agree or disagree with this view?
This question requires candidates to discuss the balance between banks’ profit-making objectives and their social responsibilities. It’s an agree/disagree essay that tests your ability to analyze both perspectives and present a clear position.
Banks balancing profit and social responsibility in lending decisions
Band 8.5 Sample Essay
In my opinion, while banks should certainly consider social responsibility in their lending practices, this shouldn’t completely override profitability concerns. I will explain why a balanced approach is crucial for both banks and society.
Firstly, incorporating social responsibility into lending decisions can yield significant societal benefits. When banks prioritize lending to environmentally sustainable projects or small businesses in underdeveloped areas, they contribute to balanced economic growth and environmental protection. For instance, many Asian banks have successfully implemented green lending programs that support renewable energy projects while maintaining reasonable profit margins.
However, completely subordinating profit to social responsibility could be counterproductive. Banks need to remain financially viable to continue serving their communities effectively. As demonstrated by the importance of ethical banking in corporate practices, a bank that consistently operates at a loss cannot sustain its operations or protect depositors’ interests. Moreover, profitable banks can invest more in community development programs and expand their services to underserved areas.
The optimal approach is to integrate social responsibility into a sustainable business model. Banks can develop innovative financial products that serve social needs while generating acceptable returns. For example, microfinance initiatives in developing countries have shown that lending to small entrepreneurs can be both socially beneficial and financially viable.
In conclusion, while social responsibility should be a significant factor in banking decisions, it shouldn’t completely override profitability concerns. The key lies in finding the right balance between social impact and financial sustainability.
Band 6.5 Sample Essay
I agree that banks should think about social responsibility when they lend money, but they also need to make money to survive. I will discuss both sides of this issue.
On the one hand, banks have a duty to help society. When they give loans to good projects like renewable energy or small businesses, they help make the world better. For example, in my country, some banks give special loans to farmers, which helps rural development.
But banks also need to make profit to stay in business. If they lose money, they might close down and then they can’t help anyone. Also, banks need to protect the money of people who save with them. If they make too many risky loans just to be socially responsible, they might lose this money.
I think the best way is to do both things. Banks can find ways to help society while still making some profit. Like giving loans to small businesses with good plans, or supporting green energy projects that will make money in the future.
To conclude, banks should try to be socially responsible but not forget about making enough money to stay healthy. They need to find a good balance between these two things.
Analysis of Band Scores
Band 8.5 Essay Analysis
- Sophisticated vocabulary and complex structures
- Clear position with nuanced arguments
- Excellent paragraph organization
- Relevant examples and explanations
- Cohesive devices used effectively
Band 6.5 Essay Analysis
- Simple but clear vocabulary
- Basic argument structure
- Some development of ideas
- Limited use of complex sentences
- Adequate but simple cohesive devices
Key Vocabulary to Remember
- social responsibility (n) /ˈsəʊʃəl rɪˌspɒnsɪˈbɪlɪti/ – obligation to act for society’s benefit
- sustainable (adj) /səˈsteɪnəbl/ – able to continue over time
- viable (adj) /ˈvaɪəbl/ – capable of working successfully
- subordinating (v) /səˈbɔːdɪneɪtɪŋ/ – placing in a lower position
- microfinance (n) /ˈmaɪkrəʊfaɪnæns/ – financial services for low-income individuals
- underdeveloped (adj) /ˌʌndədɪˈveləpt/ – not fully developed
- innovative (adj) /ˈɪnəveɪtɪv/ – introducing new ideas
- counterproductive (adj) /ˌkaʊntəprəˈdʌktɪv/ – having the opposite effect to what is intended
Consider practicing with these similar topics:
- Should banks be required to allocate a certain percentage of loans to environmental projects?
- Do you think governments should regulate banks’ social responsibility practices?
- What role should financial institutions play in addressing social inequality?
Share your practice essays in the comments section for feedback and discussion!
