Question

Please answer each question in 3 or more sentences.

EXERCISING YOUR ETHICS: INDIVIDUAL EXERCISE TELLING THE ETHICAL FROM THESTRICTLY LEGAL The Situation When upgrading services for convenience to customers, commercial banks are concerned about setting prices that cover all costs so that, ultimately, they make a profit. This exercise challenges you to evaluate one banking service-ATM transactions-to determine if any ethical issues also should be considered in a bank's pricing decisions. The Dilemma A regional commercial bank in the western United States has more than 300 ATMs serving the nearly 400,000 checking and savings accounts of its customers. Customers are not charged a fee for their 30 million ATM transactions each year, as long as they use their bank's ATMs. For issuing cash to noncustomers, however, the bank charges a $2 ATM fee. The bank's officers are reexamining their policies orn ATM surcharges because of public protests against other banks with similar surcharges in Santa Monica, New York City, and Chicago. Iowa has gone even further, becoming the first state to pass legislation that bans national banks from charging ATM fees for noncustomers. To date, the courts have ruled that the access fees are legal, but some organizations-such as the U.S. Public Interest Research Group (PIRG) continue to fight publicly against them. In considering its current policies, our western bank's vice president for community relations is concerned about more than mere legalities. She wants to ensure that her

Answer 1

1)The commercial bank is justified in charging ATM fees from non customers because the bank is providing a service and so should be paid for its service so that they have a good profit margin.

2) The ethical issue is that the bank has the responsibility of providing service to the customers and the bank is doing it.The courts consider ATM fees to be legal but some organisations are not in favor of this and protest against it.Some states have banned charging ATM fees.Economic issue is that the banks will not get money and profit will reduce. So it is more a legal and economic issue than ethical.

3)As an officer , i would be concerned more than legal matters about community relations.Any decision taken about charging fees will affect the customers and the profit made by the owner of the bank.So to be a good citizen and to do the right thing for the community,ATM fees should be stopped.