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Ethical Challenges Alicja Choma digitales archiv ZBW – Leibniz-Informationszentrum Wirtschaft ZBW – Leibniz Information Centre for Economics Book Changing frontiers of ethics in finance Provided in Cooperation with: Open Access Documents This Version is available at: http://hdl.handle.net/11159/4253 Kontakt/Contact ZBW – Leibniz-Informationszentrum Wirtschaft/Leibniz Information Centre for Economics Düsternbrooker Weg 120 24105 Kiel (Germany) E-Mail: [email protected] https://www.zbw.eu/econis-archiv/ Standard-Nutzungsbedingungen: Terms of use: Dieses Dokument darf zu eigenen wissenschaftlichen Zwecken This document may be saved and copied for your personal und zum Privatgebrauch gespeichert und kopiert werden. Sie and scholarly purposes. You are not to copy it for public or dürfen dieses Dokument nicht für öffentliche oder kommerzielle commercial purposes, to exhibit the document in public, to Zwecke vervielfältigen, öffentlich ausstellen, aufführen, vertreiben perform, distribute or otherwise use the document in public. If oder anderweitig nutzen. Sofern für das Dokument eine Open- the document is made available under a Creative Commons Content-Lizenz verwendet wurde, so gelten abweichend von diesen Licence you may exercise further usage rights as specified in Nutzungsbedingungen die in der Lizenz gewährten Nutzungsrechte. the licence. https://creativecommons.org/licenses/by-nc-nd/4.0/deed.en Leibniz-Informationszentrum Wirtschaft zbw Leibniz Information Centre for Economics Ethical Sieve Changing Frontiers of Ethics in Finance Changing Frontiers of Ethics in Finance of Ethics Frontiers Changing Ethics & Trust in Finance Global Prize Awards 2012–2017 Edited by Paul H. Dembinski Josina Kamerling Virgile Perret 1 Changing Frontiers of Ethics in Finance Ethics & Trust in Finance Global Prize Awards 2012-2017 2 3 Changing Frontiers of Ethics in Finance Ethics & Trust in Finance Global Prize Awards 2012-2017 Edited by Paul H. Dembinski Josina Kamerling Virgile Perret Globethics.net Ethical Sieve No. 1 4 Globethics.net Ethical Sieve Director: Prof. Dr Obiora Francis Ike. Executive Director of Globethics.net and Professor of Ethics at the Godfrey Okoye University Enugu/Nigeria. Series Editor: Prof. Dr Amélé Ekué. Prof. Dr Amélé Ekué is a Protestant theologian and Globethics. net Academic Dean Globethics.net Ethical Sieve 1 Paul Dembinski, Josina Kamerling and Virgile Perret (Editors), Changing Frontiers of Ethics in Finance Geneva: Globethics.net, 2019 ISBN 978-2-88931-317-4 (online version) ISBN 978-2-88931-318-1 (print version) © 2019 Globethics.net with Observatoire de la Finance © Observatoire de la Finance – ISSN 1422-4658; with permission to republish texts published in the Financial Ethics Review: Finance & common good/finance & bien commun. Managing Editor: Ignace Haaz, Assistant Editor: Samuel Davies Layout and proofreading: Hannah Soissons Globethics.net Ethics & Trust in Finance Prize International Secretariat C/o Observatoire de la Finance 150 route de Ferney 16, chemin des Clochettes 1211 Geneva 2, Switzerland 1206 Geneva, Switzerland Website: www.globethics.net/publications Website : www.ethicsinfinance.org Email: [email protected] Email: [email protected] The electronic version of this book can be downloaded for free from the Globethics.net website: www.globethics.net. The electronic version of this book is licensed under the Creative Commons Attribution-Non- Commercial-NoDerivatives 4.0 International License (CC BY-NC-ND 4.0). See: https://creative- commons.org/ licenses/by-nc-nd/4.0/. This means that Globethics.net grants the right to download and print the electronic version, to distribute and to transmit the work for free, under the following conditions: Attribution: The user must attribute the bibliographical data as mentioned above and must make clear the license terms of this work; Non-commercial. The user may not use this work for commercial purposes or sell it; No derivative works: The user may not alter, transform, or build upon this work. Nothing in this license impairs or restricts the author’s moral rights. Globethics.net retains the right to waive any of the above conditions, especially for reprint and sale in other continents and languages. Disclaimer The opinions expressed in this publication are those of the authors. They do not necessarily reflect the opinions or views of the Jury or members of the Jury of the Global Prize “Ethics & Trust in Finance” or the official policy or position of any agency, organization, employer or company. 5 The regulation of the financial sector has been significantly tightened up. Arti- ficial intelligence, Blockchain and fintech offer opportunities. The “tone from the top” has grown in strength. But “banks do not always know best” as put it the 2016-2017 winner of the global Prize “Ethics & Trust in Finance”. That is why the “echo from the bottom” sent by the young academics and professionals competing for the Prize is crucial: ethics must permeate practices, technology, strategy and culture in financial institutions. François Villeroy de Galhau, Governor of the Banque de France Technology has brought human interaction from far apart, faster. These benefits pose the risks that the parties might misunderstand their different values, which ensure trustworthiness and ethical principles. This information is not likely to be transferred as fast as the financial assets. Language and signals may differ and raise conflicts rather than agreement. Explanation of these differences is crucial to peaceful and trusting interaction in finance. The book «Changing Frontiers of Ethics in Finance» offers this crucial knowledge to the international financial actors and I believe will impact international finance. Tamar Frankel, Professor of Law Emerita, Boston University School of Law When the Ethics in Finance- Robin Cosgrove Prize was launched in 2006, Pro- fessor Dembinski and I took a leap of faith, dedicated to the memory of Robin, a young banker who believed passionately that the finance sector could and should be a force for good in the world. Between 2006 and 2015 we gradually built the reputation of the Prize, leading to the IMF in 2015 recognising the Prize as a significant contribution to encouraging global awareness of the role of ethics in finance. Now the Ethics and Trust in Finance Prize has stimulated an exceptio- nal range of analysis, published in this second collection of nominated papers which I am happy to recommend. Dr. Carol Cosgrove-Sacks, Honorary Member of the Prize Jury and formerly co-Director of the Ethics in Finance - Robin Cos- grove Prize 6 7 Changing Frontiers of Ethics in Finance The Ethics & Trust in Finance Prize ................................................................... 13 Introduction Paul H. Dembinski, Josina Kamerling and Virgile Perret ........... 15 Part I Conceptual Challenges Epistemological foundations for the relationship between ethics and finance German Scalzo ....................................................................................................................... 25 When Banks do not Always Know Best Babatunde Valentine Onabajo ................................................................................... 37 Behavioural Ethics and the Next Generation in Finance Ross Murdoch .......................................................................................................................... 51 Ethics at the New Frontiers of Finance Martin Foo .............................................................................................................................. 65 Financial Services as a «Common» Good Camille Meyer .................................................................................................................... 79 Objectivity - a Pipe Dream ? Mariusz Maziarz ............................................................................................................ 95 8 Is Moral Hazard Always Immoral? Emilia Klepczarek .............................................................................................................. 111 Dirty Hands and Dirty Money: Towards a Framework for Fi- ghting Pollution in Finance Mar Pérezts ............................................................................................................................... 121 Common Sense Elia Breijo Pena ..................................................................................................................... 139 Part II Ethics, Technology and Innovation Hard Coding Ethics into Fintech Brett Scott ................................................................................................................................ 151 Making Innovation in Finance Ethical Anne Godbold ......................................................................................................................... 165 The Digital Panopticon: a Chance for Ethical Change Charmaine Fernandes ................................................................................................ 181 Big Data in Finance: Ethical Challenges Alicja Choma ........................................................................................................................... 193 The blockchain Revolution Witold Gromala .............................................................................................................. 207 Blockchain Technology for Reputation Scoring of Financial Actors Brett Scott ...................................................................................................................................
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