I am sure that in financial sector you have to do things which don’t look ethical.
Giving a personal loan at 24 perc+ interest is not ethical. Creating mounting pressure on an individual to repay a loan is not ethical, calling millions of people and convincing them to take a loan is not ethical. But doing all of this makes money.
Also, is giving loans at higher interest rate to needy people ethical? But will we ever invest in a company giving loans to needy people at 10 percent? We won’t be able to, such a company will not survive.
A finance company takes all opportunities available to it for growth, optimising its own risk reward ratio.
As a share holder you will like a company growing at 25 perc rather than an ethical company growing at 10 percent, sometimes going into losses so that it can give some leeway to people who might be facing difficulties repaying loans.
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