Ethical Code of Conduct

In Organization
Submitted To:
Sir Mubashir Durrani
Submitted By:
Rabbia Khan Roll# 23
Amina Faheem Roll#20
Rukham Bashir Roll#51
Iqra Saeed Roll# 18










Institute of Management Sciences
BAHAUDDIN ZAKARIYA UNIVERSITY, MULTAN.





ACKNOWLEDGEMENT
First of all We are thankful to Almighty Allah who gave us knowledge and power to make us
able to complete our report successfully.
We are also thankful to Sir Mubashir Durrani and our Institute of Management Sciences
Bahauddin Zakariya University Multan who provide us this opportunity to have an experience in
a reputed organization and groom us for the future professional responsibilities.
We offer our heartiest tribute and cordial gratitude to present our thanks to Mr.Maskeen
Manger of State Bank of Pakistan Multan for their kind support and cooperation in this project.







PREFACE
At the graduation level, the students, after the completion of their studies have to face a lot of
difficulties and problems as they are entering a completely new phase of their lives that is the
practical field in simple, due the vast difference between theoretical and practical work. To
avoid such discrepancies the students of BBA are given the opportunity to not only visit various
business organizations but also to work there and gain firsthand experience at the process and
method in which these different organizations function.


The purpose of the practical training is to increase the know how of the students regarding the
virtual jobs of different business organizations of the country. It is also included in the charter of
Project Report that the students go through actual systems of the management which prevail in
the various business organizations. It is also necessary to enhance their managerial capabilities
include and comprehensive manner in respect of various managerial opportunities.
The preparation and submission of this Project Report is essential for all the students of BBA.
This Report on ethical code of conduct in State Bank of Pakistan covers more or less all the
aspects regarding the ethics code of conduct, working system, overall ethical behavior
considering the fact that the report is meant to give an overview of the State Bank of Pakistan.



Introduction

The State Bank of Pakistan (SBP) is the central bank of Pakistan. While its constitution, as
originally laid down in the State Bank of Pakistan Order 1948, remained basically unchanged
until January 1, 1974, when the bank was nationalized, the scope of its functions was
considerably enlarged. The State Bank of Pakistan Act 1956] with subsequent amendments,
forms the basis of its operations today. The headquarters are located in the financial capital of
Pakistan, Karachi with its second headquarters in the capital, Islamabad.

Vision and Mission:








Ethics
Ethics, also known as moral philosophy, is a branch of philosophy that involves systematizing, defending,
and recommending concepts of right and wrong conduct.
Ethics in Banking Industry:

One should act professionally and ethically, chief executive, members of the Board, officials at
all levels, or supporting staff -- to act responsibly as per demands of the job with clear
conscience. The responsibility does not end at the frontier of the origination of the bank but as a
socially productive organisation it must meet the role expectation of the society and the country.
If you think deeply you will find that the banks or for that matter any profit making business or
non-profit-oriented organisation through their work respond to a structure of social relations
which are a cluster of rights and duties. Hence the roles contain legal, ethical and customary
elements. The legal elements are explicit but moral injunctions require to look beyond self
interest and legal requirements. Ethical element often is defined conditionally in terms of loyalty,
obedience and confidentiality. But we know that these precepts have been used to hide unethical
practices here and elsewhere, in banking and in other business. One has to recognise that a job is
not merely a way of making a living but that it carries with it professional competence,
professional integrity, personal morality and general obligation to the society and the country.
The unfortunate fact is that we have taken the job as a means for making good life and have
overlooked weightier responsibilities that attend the practice of the profession. Bankers are not
alone it having a moral obligation but bankers, dealing in others peoples savings and impacting
on the economy broadly.
Ethics in State Bank Of Pakistan:
We Do The Right Thing:
SBP say that they are doing right in serving their employees customers and their relationship with other
banks is much enough good.
Our Ethical Principles: Doing the Right Thing:
1. Uncompromising integrity:
Doing the right thing without compromise, even when circumstances make it difficult. We are clear,
truthful and accurate in what we say and do.
2. Respect:
Treating each other with respect and dignity; appreciating the diversity of our workforce, customers and
communities.


3.Responsibility:
Being accountable for ethical decisions and actions; asking for clarification when necessary and
reporting concerns or violations.

1.Our Employees:
They have good relationship with their employees. They are treating their employees without any
discrimination and providing them all opportunities to go ahead and also there are encouraging
environment.
I. Accountability: There are also strong check and balance of employees accountability if they are
involved in any kind of wrong action then they are punished and their salaries are also
deducted.
II. Encouragement: For the encouragement of employees they are given promotions and also
bonuses. Their ACR are present they check it. It has 50 marks and every year employees are
awarded if they are punctual, attentive, good in behavior, their attendance, behavior with
customers and behavior with seniors.

2.Economy Welfare:
1. SBP doing good for the welfare of the economy like they are responsible to control foreign exchange .
Open market operation they have to maintain the reserves in banks and to issue rupee accordance of it.
2. They have to normalize the currency fluctuations for the welfare of economy.
3. For the welfare of the economy SBP issue the foreign currency bond
3. Interaction with other Commercial Banks:
SBP is basically Govt; bank and banker to banks. It deals with the commercial banks. Commercial banks
main branch have interaction with the SBP and had account there. They should tell the true and ethical
reasons of the transaction. SBP itself not involved in collecting of remittances but it can demand from
other commercial banks anytime they are legally bound to surrender in front of the SBP. SBP collect
Revenues, excise duty collections from the commercial banks.
4.Pollution:
Every organization is ethically bound to consider if any pollution is spreading due to it. So in case of
SBP they burn their old NOTE(Rupee) in their burners and they have chimney which is throwing smoke
out of it which may be dangerous for the health of the citizens because in Multan it is located in the
heart of the city. But they said that they had removed the old method of burning. Now they have the


SHREDDING machines which makes the NOTE in the powder form which do not create pollution and
which is disposed off in proper way. But it increase work load on the workers.
5.International Standard:
SBP ethically and morally fulfill it. IMF also enforce it and ensure that international standard is
maintained. They control fluctuations , currency rate according to Dollar and also supply and demand
fluctuations.
6.Manipulation in balance Sheet:
SBP says that they do not manipulate the balance sheet and all the system is computerized and have
strong check and balance on it. It is also responsible to check if any unethical situation is present in any
commercial bank then it should focus on it.
7.Merit Selection/Recruitment of employees:
SBP says they select their employees totally on merit. NTS test is conducted and after passing it then
interviews are conducted which are also on merit bases and selection is on merit which is ethically right
and positive thing in economy. It give incentives to the employees for early retirement to promote new
workers. They initiate schemes to give them much more pensions rather than at the age of 60.
1. Golden handshake scheme for the employees who want to get retirement at the age of 55 age and
get more pension then normal.
2. Disciplinary action takes if employees not performing well and it can be fired and new employees are
selected.
3. NIBAF National Institute of Banking and Finance give them training properly.
8. Security Measures:
Security measures are taken if any problem occurs. They have fire exhaust but now fumigation system is
introduced due to which fire can be controlled easily.
Rehearsal of employees conducted after every 3 months in National Bank of Pakistan in Multan in case
of any emergency how react and how control it.
9. Safe environment:
1. Alcohol and drug free environment: Employees are not permitted to use, possess, distribute,
manufacture, sell, attempt to sell, or be under the influence of alcohol or illegal drugs.


2.Vehicle Safety: Employees are provided with advantage of vehicle safety.
3.Workplace safety: Work place safety is very important for any organization and in SBP there
is safe work place environment and there is no physical harm.
10. Check and Balance on Note:
There is alphabetically series on the rupees and which is assigned to the employees one by one during
its disposal and if any series number is in circulation which was ordered to burn then the employee
suffer from punishment which is ethically right.
Some unethical practices in SBP:
1.Issuing of Note:
One of the main unethical practices involved in SBP is the issuance of Note which is illegal but due to
political influence SBP do not take action it should take action and should control it and without the
reserves of the Dollar should not issue Note. One of the Governor of SBP Shamshad Akhtar resigned due
to this issue.
2.Recommendations while conducting Interviews:
Recommendations while conducting interviews is not ethical merit should be first priority without the
quota of the seats of employees favor should not be given to any one.
3. Ignorance of employees:
Workers do not pay so much attention toward the customers/people who came SBP for many reasons.
Workers remain busy in their own work and do not pay so much attention customer have to wait for
them.
4.Frauds:
Frauds are most unethical practices in banks and should be removed as early as possible. System
transparency should be encouraged.
Conclusion:
Environmental issues have raised large and complicated ethical and technological questions for our
business society. The objectives are to conduct the personal and professional lives and activities in an
ethical manner. Honesty, justice and courtesy form moral philosophy which, associated with a mutual
interest among people, constitute the foundation of ethics. An organization should recognize such a
standard, not in passive observance, but as a set of dynamic principles guiding their conduct and way of
life. It is their duty to practice their profession according to this Code of Ethics. The code of ethics
include that for employees of banks, practice for personal customers, business customers, practice of
banks on competition, and general principles of banking.



Ethics for employees:

All employees of SBP are required to comply with the rules and regulations governing SBP, including
banks policies, procedures and standards. All employees must function with integrity within the scope
of their authorities and follow directives given by the person(s) under whose jurisdiction they are
deputed with complete honesty. Core value of Integrity must be promoted by upholding fairness,
equality and respect for all team members. Discrimination, harassment of all types, intimidation and
other negative practices are strictly prohibited.
Employees are not authorized to use Banks facilities to promote trade union or officers association
activities, or carry weapons into Bank premises unless so authorized. They must not carry on above
mentioned activities during office hours. All full-time employees must devote their entire business day
to their work; avoid any outside activity that interferes with their judgement in the best interest of the
Bank and its clients. Employees shall not borrow from or lend personal funds or property to any Client or
Vendor who has a relationship with the Bank except on market terms and conditions from financial
institutions. Borrowing or lending in personal capacity within the Bank is prohibited.

Workplace Environment
The Bank is committed to creating and maintaining a working, learning and customer care
environment, which is free from violence and has zero tolerance for violence against any
employee or its property.
Employees are not allowed to play practical jokes or pranks on each other, indulge in horseplay,
or share immoral jokes with other employees, or the outside world.
Employees are prohibited to use, exchange, or sell intoxicants or drugs in the work place or
come to work under their influence. Smoking is allowed only in designated areas.
Employees are required to maintain proper dress code, appear well groomed and presentable at
all the time. Livery staff should be in their proper uniform. High standards of behaviour and tidy
work areas are to be maintained at all times.

Relationship with and Responsibilities to Customers, Prospects and other External Constituencies

Employees must always act fairly, equitably and objectively with all customers, prospects,
suppliers and other external constituencies. Highest degree of integrity, honesty, proprietary
and loyalty, towards the interest of the Bank, its customers and regulators is a must.
Employees are not authorized to accept or agree to accept any gifts or conveyance of anything
of value from any current or prospective customers or vendors or any person who has a
business relationship with the Bank with exception of the following:

1. Gifts that relate to commonly recognized events or occasions such as a promotion, new job,
wedding, retirement etc. provided those gifts are of reasonable value.
2. Gifts from a person who has a business relationship with the Bank, provided the acceptance is
based on relationship existing independent of the business of the Bank and reported to the
Human Resource Group.
3. Benefits available to the general public e.g. advertising or promotional materials, and discount
or rebates on merchandise or services
4. Civic, charitable, educational or religious organizational awards for recognition of service or
accomplishment.



Other Key Legal/Compliance Rules and Issues

Employees are strictly prohibited to engage in insider trading, buying or selling Banks common
stocks or otherwise benefitting from sharing inside information, whether obtained through
workplace or outside sources.
SBP fully supports the intended drive against serious crime and is committed to assisting the
authorities to identify money laundering transactions and where appropriate to confiscate the
proceeds of crime. Employees must follow the Anti Money Laundering Policy and Procedures.
Violation of any of the clauses of this Code of Ethics by any employee, may lead to disciplinary
proceedings culminating in punishment as per merits of the case.

Integrity in Marketplace
SBP make the following commitments:
Fair Dealing:
We will not take unfair advantage of anyone through manipulation, concealment, abuse of
privileged information, misrepresentation of material facts, or any other unfair-dealing practice.
Integrity in Marketing, Advertising and Promotions.

Hence, we conclude that:

SBP has strong internal control for transactions therefore, low chances of fraud.
SBP treats its employee great. The opportunities for job securities, good salary packages and
benefits for employees attract and retain talent.