PRINCIPLES OF ETHICS IN THE BUNNA INTERNATIONAL BANK

INTRODUCTION
Bunna International Bank S.C. has joined the Banking industry of Ethiopia following the
favorable economic developments witnessed in the country during the last decade and the
incessantly growing needs for Financial Services. The bank has obtained its license from the
National Bank of Ethiopia (NBE) on June 25, 2009 in accordance with Licensing & Supervision of
Banking Business Proclamation No. 592/2008 and the 1960’s Commercial Code of Ethiopia. The
Bank officially commenced its operation on October 10, 2009 with subscribed & paid up capital
of 308 Million Birr and 156 Million Birr, respectively. Timely introduction of various products to
suit the diverse needs of customers is a functional necessity to the banks. Technology gives the
cutting edge to come out with customer centric products and delivery channels in time.
Technology in banking has evolved substantially from the days of back office automation
to today‟s online, centralized and integrated solutions Ten years ago, in Ethiopia banking
industry most of the advanced banks had branch automation software with „online‟
passbook printing facilities. At the branch level, banks were moving away from product-specific
counters and trying any-counter service for all products (www.2markato.com). Nowadays, most
banks use CORE banking applications for the smooth running of their service. This system
allows the entire bank's branches to access applications from centralized data centers.
BACKGROUND OF BUNNA INTERNATIONAL BANK
The Bank officially commenced its operation on October 10, 2009 with subscribed & paid up
capital of Birr 308 million and Birr 156 million, respectively. However, the paid up capital has
increased to over Birr 2.1 Billion and the number of shareholders has increased to over 13,024,
which makes it one of the strongest and public based private Banks in Ethiopia.
Bunna International Bank Share Company (BIB) runs its operations with modern information
technologies for its value adding customer services. Furthermore, BIB is running different ICT
projects to create more convenience for the customers to reach them anytime, anywhere, any
device. BIB is also working to enhance the infrastructure for organizational, national and
international business connectivites.
BIB’s Core Banking Services, Customer Relationship Management and straight-through-
processing capabilities are powered by Infosys Finacle. BIB has integrated its services with
Ethiopian Automated Transfer System (EATS), National Switch (EthSwitch), Ethiopian
Commodity Exchange (ECX) and the Ethiopian Credit Reference Bureau (ECRB). It has joined the
international business connectivity using SWIFT, Western Union, MoneyGram, Xpress money,
Flocash, Juba, Dahabshiil, Trans-Fast, Kaah, Exchange4free, Remitix, Ria, Al Ansari and other
fund transfer technology networks.
Moreover, BIB continues to use innovative ICT solutions in the industry with fast time-to-
market capabilities that allow extend business services of the customers.
CORE BANKING SYSTEM PRODUCTS
1. Automated Teller Machines (ATM): It is an electronic terminal which gives consumers the
opportunity to get banking service at almost any time. ATM card is useful to a card holder as it
helps him/her to withdraw cash from banks even when they are closed. Moreover, a
consumer needs an ATM card and a personal identification number (PIN). (Gordaon E., and
Natarajan, K.,).
2. Point-of-Sale Transfer Terminals (POS) is typically includes a computer, a cash register and
other equipment or software used to sell goods or services.
3. Internet banking: referred as online banking, web banking or virtual banking, an
outgrowth of PC banking, is a more developed service, a system that enables bank customers to
access accounts and general information on bank products and services or perform account
transactions directly with the bank through a personal computer using the internet as the
delivery channel.
4. Mobile banking: is best described as the newest channel in a banking to provide a
convenient way of performing banking tractions using mobile phones or other mobile device.
The potential for mobile banking may be for greater than online PC users (Singh and Nayak)
Structure of Bunna International bank
Vision, Mission and Core Values of Bunna international bank
vision statement
“To become one of the top three commercial banks in Ethiopia by the Year 2030.”
Mission statement
To Provide Commercial Banking Services to enhance values of key stakeholders and win public
trust using professional employees and State-of-the-art technology”
Core values
 WINNING: We have a strong conviction to outperform the banking competition in an
ethical manner; by striving for excellence and exercising highest level of professionalism.
 RESPECT: We respect each other's value, differences and contributions to our
customers, our shareholders, ourselves, our vendors, and our community. We also
 recognize that everyone is important and has a role to play. We focus on support,
collaboration and care while we treat our customers, shareholders, regulatory body and
the society.
 RESPONSIBILITY: We act responsibly to balance the interest of our stakeholders.
 Customer focus
 Commitment
Motto
 Bank of the Visionaries

Concept of the Principles Ethics

Ethics is a broad term that covers the study of the nature of morals and the specific moral
choices to be made. Normative ethics attempts to answer the question, “Which general moral
norms for the guidance and evaluation of conduct should we accept, and why?. Some moral
norms for right conduct are common to human kind as they transcend cultures, regions,
religions, and other group identities and constitute common morality (e.g., not to kill, or harm,
or cause suffering to others, not to steal, not to punish the innocent, to be truthful, to obey the
law, to nurture the young and dependent, to help the suffering, and rescue those in danger).
Particular morality refers to norms that bind groups because of their culture, religion,
profession and include responsibilities, ideals, professional standards, and so on. A pertinent
example of particular morality is the physician’s “accepted role” to provide competent and
trustworthy service to their patients. To reduce the vagueness of “accepted role,” physician
organizations (local, state, and national) have codified their standards. However, complying
with these standards, it should be understood, may not always fulfill the moral norms as the
codes have “often appeared to protect the profession’s interests more than to offer a broad
and impartial moral viewpoint or to address issues of importance to patients and society”.
Principles of Ethical and public ethics or ethical codes are tools used by professions for the
ultimate purpose of maintaining confidence between customers and the employees. The
Principles of Ethical and Public Service contain instructions for good operations. They do always
include detailed guidelines, and also they may consist of core values and principles to be
interpreted independently in varying work situations. Their power lies in providing easy-to-
remember “rules of the thumb” in simple form. The problem is that rules may simplify matters
too much. On the other hand, if we try to make rules comprehensive, they can easily become
too complicated. The rules will not have the guiding effect hoped for unless they are publicly
civil service ethics is often thought of in relation to corruption, which can be defined as a
request for, acceptance or offer of a bribe. However, as far as social ethics is concerned,
corruption in this sense is quite an easy object. Accepting gifts or other benefits is considered
quite inappropriate and bribery-related crimes are punishable offences under the Penal Code.
The line to be drawn mainly relates to defining the kind of financial or other benefit that is to be
deemed a bribe in an individual case. However, corruption can be understood as a broader
issue than just bribery. It can refer to any actions relating to abuse, e.g. to the misuse of one’s
official position to one’s own benefit or to other acts endangering impartiality. Corruption has
also been defined as both bribery, self-corruption and any other effort to influence political
administrative decision-making on morally and socially inappropriate grounds.
This includes deviations from the obligations of public office and/or the pursuit of some special
interest. This can be e.g. the pursuit of the interests of an organization, a political party or an
individual by inappropriate means at the cost of public interest. This organization is based on
pillars of Good Governance such as:
 Participatory
 Rule of Low
 Corruption
 Transparency
 Responsiveness
 Conciseness Oriented
 Equity and Inclusiveness
 Effectiveness and Efficiency
 Accountability
4. Pillars of Good Governance in Bunna International bank
The essence of good governance is basically greater efficiency and rationality in resource
allocation, and enhances environmental enabling and lack of corruption because not all
governances are good governances. Based on the fact that its features include: participation,
rule of law, consensus oriented, efficiency and effectiveness, corruption, transparency,
responsibility, accountability and, equity a
a. Public Participation:
Participation by both Departments and College is a key corner stone of good governance.
Participation could be either direct or through legitimate intermediate institutions or
representatives. Participation also shows the promotion of representative democracy of
authority and the provision of necessary response for the request of customer/service
recipients. It also emphasis that client orientation and res
b. Rule of law:
 Good governance requires fair and legal frameworks that are enforced impartially. It also
requires full protection of human rights, particularly those of minorities. Impartial enforcement
of laws requires an independent.
c. Corruption:
Corruption is a symptom of something gone wrong in the management of the state. Various
institutions that are designed to govern the relationships between citizens and the state are
used instead for the personal enrichment of public officials and the provision of benefits to the
corrupt. Its basic cause is the prevalence bad form government’s governance. The report
asserted that corruption is the direct response of bad governance.
d. Transparency:
According to Graham et al the process of decision making and implementation has to be done
in an open manner, and the information of decision making and implementation.
e. Responsiveness:
Good governance requires this University and processes try to serve all departments within a
reasonable timeframe. Consistently argues that: The primary responsibilities of the government
can be briefly stated as laws and order and police, adequate and promote criminal and civil
justice systems, and protection on interests of economically and socially weaker sections of
society. The government will also have to take the responsibility for provision of education
systems.
f. Consensus Oriented:
In different employees there are certain interest groups who can represent and influence the
attitudes and interests of the community. Therefore, mediating these groups with government
bodies can help to reach a broad consensus in employees on what is in the best interest of the
whole employees.
g. Equity and Inclusiveness:
Stated this employees wellbeing always depend on ensuring all its members feel that they
have a stake in it and do not feel excluded from the mainstream of society. This requires all
groups, but particularly the most vulnerable, have opportunities to improve or maintain their
well-being.
h. Effectiveness and Efficiency:
Institutions produce results that meet the needs of society while making the best use of
resources at their disposal. The concept of efficiency in the context of good governance also
covers the sustainable use of natural resources and the protection of the environment.
i. Accountability:
 These governmental institutions but also the private sector like Bunna International bank and
civil society organizations must be accountable to the public and their institutional
stakeholders. Who is accountable to who varies depending on whether decisions or actions
taken are internal or external to an organization or institutions. In general an organization or an
institution is accountable to those who will be affected by its decisions or actions.
Accountability cannot be enforced without
5. 12 the Principles Ethical of Bunna International bank
Ethical values, translated into active language establishing standards or rules describing the
kind of behavior an ethical person should and should not engage in, are ethical principles. The
following lists of principles incorporate the characteristics and values in Bunna International
bank employees associate with ethical behavior in organization. Such as:
1. HONESTY, Ethical executives are honest and truthful in all their dealings and they do not
deliberately mislead or deceive others by misrepresentations, overstatements, partial truths,
selective omissions, or any other means.
2. INTEGRITY, Ethical executives demonstrate personal integrity and the courage of their
convictions by doing what they think is right even when there is great pressure to do otherwise;
they are principled, honorable and upright; they will fight for their beliefs. They will not sacrifice
principle for expediency, be hypocritical, or unscrupulous.
3. PROMISE-KEEPING & TRUSTWORTHINESS, Ethical executives are worthy of trust. They are
candid and forthcoming in supplying relevant information and correcting misapprehensions of
fact, and they make every reasonable effort to fulfill the letter and spirit of their promises and
commitments. They do not interpret agreements in an unreasonably technical or legalistic
manner in order to rationalize non-compliance or create justifications for escaping their
commitments.
4. LOYALTY, Ethical executives are worthy of trust, demonstrate fidelity and loyalty to persons
and institutions by friendship in adversity, support and devotion to duty; they do not use or
disclose information learned in confidence for personal advantage. They safeguard the ability to
make independent professional judgments by scrupulously avoiding undue influences and
conflicts of interest. They are loyal to their companies and colleagues and if they decide to
accept other employment, they provide reasonable notice, respect the proprietary information
of their former employer, and refuse to engage in any activities that take undue advantage of
their previous positions.
5. FAIRNESS, Ethical executives and fair and just in all dealings; they do not exercise power
arbitrarily, and do not use overreaching nor indecent means to gain or maintain any advantage
nor take undue advantage of another’s mistakes or difficulties. Fair persons manifest a
commitment to justice, the equal treatment of individuals, tolerance for and acceptance of
diversity, the they are open-minded; they are willing to admit they are wrong and, where
appropriate, change their positions and beliefs.
6. CONCERN FOR OTHERS, Ethical executives are caring, compassionate, benevolent and kind;
they like the Golden Rule, help that in need, and seek to accomplish their business objectives in
a manner that causes the least harm and the greatest positive good.
7. RESPECT FOR OTHERS, Ethical executives demonstrate respect for the human dignity,
autonomy, privacy, rights, and interests of all those who have a stake in their decisions; they
are courteous and treat all people with equal respect and dignity regardless of sex, race or
national origin.
8. LAW ABIDING, Ethical executives abide by laws, rules and regulations relating to their
business activities.
9. COMMITMENT TO EXCELLENCE, Ethical executives pursue excellence in performing their
duties, are well informed and prepared, and constantly endeavor to increase their proficiency in
all areas of responsibility.
10. LEADERSHIP, Ethical executives are conscious of the responsibilities and opportunities of
their position of leadership and seek to be positive ethical role models by their own conduct
and by helping to create an environment in which principled reasoning and ethical decision
making are highly prized.
11. REPUTATION AND MORALE, Ethical executives seek to protect and build the company’s
good reputation and the morale of its employees by engaging in no conduct that might
undermine respect and by taking whatever actions are necessary to correct or prevent
inappropriate conduct of others.
12. ACCOUNTABILITY, Ethical executives acknowledge and accept personal accountability for
the ethical quality of their decisions and omissions to themselves, their colleagues, their
companies, and their communities.
As we evaluate Branch Of Bunna Internationa Bank around Ethiopian Civil service university
The manager tries to implement Principles of Ethical Public Service by providing awareness
creation programs by training and other methods of communication. There is also supervision
and investigation based on the comments given by both internal and external customers of the
bank . as well he aware them to wear uniform and being on time. Even though the manager
try to force for the implementation of these principles, still it is not possible to say it’s
successfully enough. There are still problems which need to be solving with greater care and
commitment.

6. Statement of the Problem

The main reasons that affect the implementation on these principles can be categorized in to
two.
 The first one is based on organizational problems like weak structure, poor monitoring
and evaluation, system inability to use modern technologies and other problems of the
organization affect the practice of Ethical Principles.
 On the other hand problems emerging from the person can also affect the overall
practice of those ethical principles. Like weak commitment and Lack of motivation,
focusing only on one’s own interest is major personal challenges.

7. Statements of Solution
To solve the overall problems first the organization need to give the necessary attention on the
role of those ethical principles. The management from different level needs to be committed
and follow those principles starting from themselves.

 Continuous awareness creation and improving the mechanisms or system of the

organization.
 Employees can also help to improve the practice of these principles.
 The public servant or employees are responsible to obey for those Ethical Principles.
 Improving Public Sector Management.
These principles are helps to have a good relationship within the organization. At the same time
violating those principles can result negative consequence in their personal benefit. Therefore
they need first to know the meaning and concepts of these ethical principles as well as their
role for the success of the organization and secondly they have to realize that violating these
principles can affect their life within the organization.
8. Conclusion
The findings of the study indicate that Bunna International bank programmers are framed in
line with the country’s development strategy. Instead there has been a tendency to take a
benchmark from other bank and adopt it regardless of whether it is aligned to the objective
situation on the ground in country. Again a rather top–down approach has been widely put in
place without making sure that there is unity of purpose down the line, mainly because the
change initiatives were highly politically motivated. It actually turned out that in effect much of
the reform efforts happened to be little more than rhetorical, with the actual implementation
being far from that stated as its objectives. Therefore, Bunna International bank and public
servants lack confidence in the reform directions because there is a mismatch between what
has been said and put on paper and what has been implemented in reality. It has also been
found in this study that no impact assessment had been conducted on the fruits of the
customer reform initiatives. Another problem uncovered in this study relates to the
phenomenon of a higher rate of turnover in reaction to the change endeavors, causing a
chronic problem of discontinuity, as the organizational memory tends to be disrupted because
of the turnover of such highly experienced employees. Accordingly, organizations begin reform
programmers from scratch because of employee turnover. The reform efforts have also been
found to have failed to bring about unity of purpose as an organization. Rather, much of the
effort appears to have been ethnically driven with the apparent intention to gain dominance in
the bank. Therefore, it can be concluded that customer service form programmers in Bunna
International bank are politically biased, and no due consideration was given to the basic
features of the organizations under reform. The present study shows that customers are more
reluctant to join new technologies that might contain little risk. Hence, banks should design
the website to address security and trust issues. Moreover, bank need be concerned about the
awareness of customers with regard to effectively uses of core banking system products.
However, no doubt BIB is making sincere efforts for the adoption of advanced technology and
installation of e-delivery channels but still masses are wary of the concept. BIB is need making
sincere efforts to popularize the CORE banking services and products.
Reference
[1] Alemayehu R. Mobile Commerce First from Dashen, Addis Fortune News, 2011.
Available at: http//:www.addisfortune.com/archive/2013/January/week4.
(2) employers of bunna international bank in yeka sub city around Ethiopian civil service
university.
(3) Habtamu Banga ( Manager of Bunna International bank branch of yeka sub city )

II. Questioner

BUNNA INTERNATIONAL BANK

BRANCH OF YEKA SUB CITY
Questionnaire to Ethical and Principle

1. How to implement principle of ethical service in Bunna International Bank?

If Yes_______________________________________________________
____________________________________________________________
No/ Why ____________________________________________________
____________________________________________________________
2. What is the primary reason to un implement the principle? _______
______________________________________________________________
______________________________________________________________
3. How to solve the problem? ____________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
4. What is responsibility of the customer or employee to implement these principles?
_______________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
5. Banks fulfill its promise at the time indicated?
If Yes_______________________________________________________
____________________________________________________________
No/ Why ____________________________________________________
_________________________________________________________

Thank you for your cooperation,