RBI Grade B Officer (General / DEPR / DSIM) 2025 · Question 239 of 259

- Read the passage given below and answer the following questions: In a large financial institution, several top-level managers gradually began engaging in unethical practices, such as favouring certain clients and bypassing due-diligence norms. Observing this behaviour, many lower-level employees also started compromising their ethical standards. One junior officer even approved a clearly risky and unethical loan that later turned into a bad loan. When questioned, he justified his action by saying, “Everyone else in the organization is doing this, so why shouldn’t I? If the seniors can do it, we can also follow the same practice.” This attitude reflects how unethical conduct at the top can cascade down the hierarchy and influence the behaviour of the entire organization. (This is a recreated passage and not the exact one asked in the exam) Which ethical theory best explains the behaviour of the lower-level employee who justified his unethical action by saying, “Everyone is doing it, so I am also doing it”?

Finance and Management

1. AA. Utilitarianism
2. BB. Deontological (Duty-based) ethics
3. CC. Ethical RelativismCorrect
4. DD. Virtue Ethics
5. EE. Justice Theory