Unit 10 BANKING AND ETHICS Skills focus Reading
Unit 10 BANKING AND ETHICS
Skills focus Reading • recognizing the writer’s stance and level of confidence or tentativeness • inferring implicit ideas Writing • writing situation–problem– solution–evaluation essays • using direct quotations • compiling a bibliography/ reference list Vocabulary focus • ‘neutral’ and ‘marked’ words • fixed phrases from banking • fixed phrases from academic English
10. 1 Vocabulary 10. 2 Reading 10. 3 Extending skills 10. 4 Extending skills
10. 1 Vocabulary A Study the words in box a. 1 Use your dictionary to find out the meanings. 2 What part of speech is each word? Word Part of speech Meaning/synonym activity n (C or U) work v (T) use or take on a temporary basis something belonging to someone else (lend = antonym) customer n (C) client energy n (U) power enterprise n (C or U) business organization ethics n (C) values or morals borrow
10. 1 Vocabulary A Study the words in box a. 1 Use your dictionary to find out the meanings. 2 What part of speech is each word? Word Part of speech Meaning/synonym fund n (C); v (T) finance, provide money for impact v (I or T); n (U) influence industry n (C or U) business or business sector lend v (T) loan trade n (C); v (I) business; do business
10. 1 Vocabulary B Read the Hadford University handout. 1 Use your dictionary or another source to check the meanings of the highlighted phrases. 2 Which are the stressed syllables in each phrase? See Vocabulary bank.
Vocabulary bank Recognizing fixed phrases from banking (3) Make sure you understand these key phrases from banking. charity credit cards core business Equator Principles financial instruments lending criteria lending practices long-term medium-term operating costs project finance short-term transaction fee working capital
10. 1 Vocabulary B Read the Hadford University handout. 1 Use your dictionary or another source to check the meanings of the highlighted phrases. ethical stance moral attitude socially responsible beneficial to society social gain benefit to society environmental issues matters concerning damage to our surroundings/the natural world issues on which an organization takes a specific view policy areas corporate responsibility a company’s duty to act ethically
10. 1 Vocabulary B Read the Hadford University handout. 2 Which are the stressed syllables in each phrase? ethical stance Ooo O socially responsible Ooo o. Ooo social gain Oo O environmental issues ooo. Oo Oo policy areas Ooo corporate responsibility Ooo ooo. Ooo
10. 1 Vocabulary C Look at the pictures on the opposite page. 1 What ethical issue does each picture depict? 2 For each picture, write a sentence about the role of ethical banks. Use highlighted phrases from Exercise B and words from Exercise A.
10. 1 Vocabulary C Look at the pictures on the opposite page. Possible answers: 1 illegal drugs trade: Ethical banks will not fund projects connected to the drugs trade, as they only support socially responsible investments. 2 child labour: Ethical banks will not lend money to businesses which use goods produced by child labour. 3 arms dealing: Because of their ethical stance, ethical banks do not fund enterprises such as the arms trade which do not focus on social gain.
10. 1 Vocabulary C Look at the pictures on the opposite page. Possible answers: 4 release of CO 2 into the atmosphere: Environmental issues such as factory emissions are important policy areas to ethical banks. 5 renewable energy: A business may ask to borrow money from an ethical bank, for activities such as wind power, whose impact on the environment is positive. 6 tobacco industry: Ethical banks will not support the tobacco industry because it does not take corporate responsibility for the damage caused to people’s health and the environment.
10. 1 Vocabulary D Study the words in box b. 1 Check the meanings, parts of speech and stress patterns. 2 Put the words into the correct box in the table below, as in the example. Neutral Marked rise, increase 'rocket, soar (v) fall, decrease big, large good small See Vocabulary bank.
Vocabulary bank Recognizing ‘marked’ words Many common words in English are ‘neutral’, i. e. , they do not imply any view on the part of the writer or speaker. However, there are often apparent synonyms which are ‘marked’. They show attitude, or stance. Examples: SRIs rose by 10% last year. SRIs soared by 10% last year. Soared is marked because it implies that this is a particularly big or fast increase.
Vocabulary bank Recognizing ‘marked’ words When you read a sentence, think: Is this a neutral word, or is it a marked word? If it is marked, what does this tell me about the writer’s attitude to the information? When you write a sentence, think: Have I used neutral words or marked words? If I have used marked words, do they show my real attitude/the attitude of the original writer?
Vocabulary bank Recognizing ‘marked’ words Extend your vocabulary by learning marked words and their exact effect. Examples: Neutral Marked go up, rise, increase soar, rocket go down, fall, decrease slump, plummet say, state assert, maintain, claim, argue, allege good great, brilliant, tremendous
10. 1 Vocabulary D Study the words in box b. 1 Check the meanings, parts of speech and stress patterns. 2 Put the words into the correct box in the table below, as in the example. Neutral Marked rise, increase fall, decrease 'rocket, soar (v) co'llapse (v and n), 'plummet (v), plunge (v and n), slump (v and n) big, large e'normous, huge, 'massive, sig'nificant, tre'mendous* (adj) good 'brilliant, out'standing, su'perb, tre'mendous* (adj) small insig'nificant, 'minimal (adj)
10. 1 Vocabulary E Read the extract from the Very Ethical Bank chairman’s letter to customers. 1 Use a marked word in place of each of the underlined (neutral) words. risen soared/rocketed good tremendous/superb large enormous/huge/massive fall plummet/plunge/slump/collapse large massive/significant/huge small minimal/insignificant
10. 1 Vocabulary E Read the extract from the Very Ethical Bank chairman’s letter to customers. 2 Look at the bold phrases. How strong or confident are they? See Skills bank.
Vocabulary bank Recognizing levels of confidence in research or information In an academic context, writers will usually indicate the level of confidence in information they are giving. When you read a ‘fact’ in a text, look for qualifying words before it, which show the level of confidence. Examples: It appears to be the case that … /This suggests that … (tentative) The evidence shows that … /It is clear that … (definite /confident)
10. 1 Vocabulary E Read the extract from the Very Ethical Bank chairman’s letter to customers. 2 Look at the bold phrases. How strong or confident are they? Very confident It’s clear that √ undoubtedly √ Fairly confident It’s generally accepted that √ It’s fair to say that √ you can be confident that It’s unlikely that there may be Tentative ( = not confident) √ √ √
10. 2 Reading A Study the sentence on the right. Each phrase in box a could go in the space. What effect would each one have on the base meaning? Mark from *** = (very confident to) * = (very tentative). ** * *** **
10. 2 Reading B Survey the text on the opposite page. 1 What will the text be about? 2 Write three research questions.
10. 2 Reading C Read the text. Does it answer your questions?
10. 2 Reading D Answer these questions. 1 What does the word ‘green’ mean when used to describe investments? Investments in businesses that are perceived to be environmentally positive and supportive of sustainable development. 2 How did the interest in SRIs begin? Initial interest was driven by the media not by banks or investors. 3 Why might an ethical bank decide not to lend money to a particular client? Investment decisions might be made on the basis of an organization’s business practices or the core industry it is in.
10. 2 Reading D Answer these questions. 4 What evidence does the writer give that ethical investment is a significant part of banking activity? Core SRI in the UK totalled € 30. 5 billion; broad SRI adds up to € 782 billion. 5 Has the implementation of the Equator Principles been a success? Opinions vary. Many NGOs are not satisfied with compliance and the Principles had to be revised. However, evidence suggests that projects do bring positive social benefits.
10. 2 Reading E Find the phrases in box b in the text. Is the writer confident (C) or tentative (T) about the information which follows? It is obvious that what constitutes a socially responsible investment is not the same for everyone. C Many writers seem to agree that the definition of SRI is problematic. T It appears to be the case that environmental activists have changed their focus from the large corporations … T Many writers have claimed that massive media interest in social and green issues has raised public awareness of the ‘price’ attached to the environmental impact of business … T … the evidence does not support their views, since many of these projects … C A recent survey has found that, between 2003 and 2004, ‘broad’ SRI resulted in significant growth for the European ethical wealth management market C … much of the data suggests that the critical problem is enforcing compliance. T
10. 2 Reading F Look at the writer’s description of the Equator Principles initiative (paragraph 5). 1 Underline the marked words. The impact of the Equator Principles has been _____ impossible to assess, due in part to the lack of transparency. However, much of the data suggests that the______ critical problem is enforcing compliance. As a result, in June 2006 the Principles were revised and the level of scrutiny of EPFIs was _______ upgraded. This has not been enough, however, to satisfy Bank. Track who, along with other non-government organizations monitoring private bank lending practices, have continued to attack the implementation. They_______ criticize the financing of new projects (such as _______ dam construction, or oil and gas exploration) on the grounds of their disastrous social impacts (Vogel, 2006). But according to Vogel (op. cit. ), the evidence does not support their views since many of these projects ‘make outstanding ____ contributions to local and national development’.
10. 2 Reading F Look at the writer’s description of the Equator Principles initiative (paragraph 5). 2 What does the choice of these words tell you about the writer’s opinion of the Principles? The writer’s choice of words suggests that the Equator Principles are the subject of strong opinions and disagreement.
10. 2 Reading F Look at the writer’s description of the Equator Principles initiative (paragraph 5). 3 Find neutral words to use in their place. Marked word Neutral alternative impossible critical difficult main was upgraded was improved attack disagree with criticize say they don’t like disastrous negative positive outstanding
10. 2 Reading G Study the example sentence on the right, and then sentences A and B. 1 Divide sentences A and B into small parts, as in the example sentence. 2 Underline any joining words (e. g. , conjunctions). See Skills bank.
Skills bank Identifying the parts of a long sentence Long sentences contain many separate parts. You must be able to recognize these parts to understand the sentence as a whole. Mark up a long sentence as follows: • Locate the subjects, verbs and objects/complements by underlining the relevant nouns, adjectives and verbs. • Put a dividing line: üat the end of a phrase which begins a sentence übefore a phrase at the end of the sentence übetween clauses • Put brackets round extra pieces of information.
Skills bank Identifying the parts of a long sentence Example: In recent years many writers have claimed that high street banks are very positive in offering help to small entrepreneurs who request socially responsible investments. In recent years | many writers have claimed | that high street banks are very positive in offering help to small entrepreneurs | (who request socially responsible investments).
10. 2 Reading G Study the example sentence on the right, and then sentences A and B. 1 Divide sentences A and B into small parts, as in the example sentence. 2 Underline any joining words (e. g. , conjunctions). A Other investors | may exclude | companies | from their investment pool | because | they | ‘engage in | business practices | that | are viewed | by investor groups | as socially harmful or morally-ethically repugnant’. B In June 2003, | ten international commercial banks | adopted | the World Bank International Finance Corporation’s | strict, but ‘voluntary | set of guidelines | for managing | environmental and social issues | in project finance lending. ’
10. 2 Reading G Study the example sentence on the right, and then sentences A and B. 3 Find the subjects, verbs, objects/complements and adverbial phrases which go together. A Subject phrases Verb phrases Object/complement Adverbial phrases Other investors may exclude companies from their investment pool they engage in business practices because (that) are viewed as socially harmful or morally ethically repugnant
10. 2 Reading G Study the example sentence on the right, and then sentences A and B. 3 Find the subjects, verbs, objects/complements and adverbial phrases which go together. B Subject phrases Verb phrases Object/complement ten international adopted commercial banks the World Bank International Finance Corporation’s set of guidelines for managing environmental and social issues in project finance lending Adverbial phrases In June 2003
10. 2 Reading G Study the example sentence on the right, and then sentences A and B. 4 Make several short simple sentences which show the meaning. Possible sentences: A Investors have an investment pool. Companies engage in business practices. These practices are viewed as harmful or repugnant. Some investors may exclude such companies from their investment pool. B The World Bank set guidelines for financing. The guidelines are for managing social issues. In 2003 ten banks adopted the guidelines.
10. 3 Extending skills A Read the four essay questions. What types of essay are they? 1 Outline the problems and solutions in obtaining bank finance for a business involved in alternative energy. Comparison. 2 Explain, from a bank’s viewpoint, the dilemma it faces in providing socially responsible investments for customers. . Analytical. 3 Consider a bank that provides finance for sustainable development projects. What questions might the bank ask a business applying for project finance? Descriptive.
10. 3 Extending skills A Read the four essay questions. What types of essay are they? 4 A company is planning to develop a waste recycling business. It wants to obtain finance from a bank supporting socially responsible investments. Explain the business plan and discuss the risks, benefits and finance needs of the project. Descriptive, comparison/analysis, description/ argument.
10. 3 Extending skills B Look at text A on the opposite page. Copy and complete Table 1 below. Situation John Goodman needed finance to start a business manufacturing solar panels for home owners. Problems His bank would not give him a loan on the grounds that: his market was too small; it was not a mainstream market; his product had not yet proven to be cost-effective; the ten-year loan was too long-term. • do an Internet search for banks supporting alternative energy initiatives • read carefully their lending criteria • refine technology and business plans before submitting an application Solutions
10. 3 Extending skills C Look at text B on the opposite page. Copy and complete Table 2 below. Solution ‘Ethical banks’ provide socially responsible investments for customers. Argument in favour They support businesses whose ventures have positive social and environmental outcomes. Argument against Customers may have commercial expectations which are not met by socially responsible investments.
10. 3 Extending skills D Read the title of Essay 4 again. 1 Make a plan for this essay. Examples of ideas Introduction introduce the topic area give the outline of the essay businesses → applying for bank’s SRI funding→business plan required In this essay, I will discuss a business proposal by …(situation) I will illustrate/describe … (examples) I will consider … (solutions) Body Para 1: situation/problems • project → plastics, glass + paper recycling • location → outskirts of main city in small tropical island nation • justification → current practice = dumping all waste in landfill • long-term environmental risk → land (toxic contamination) Para 2: problems (specific examples) • no current facility • community health risks • increasing environmental problem • affects land, i. e. , a finite resource • affects tourism, i. e. , main industry • too remote to interest large investors
10. 3 Extending skills Body Para 3: solutions (benefits) and risks D Read the title of Essay 4 again. 1 Make a plan for this essay. Benefits • reduces toxic waste + fumes generated by landfill • reduces growth in landfill • provides economic benefit by recycling waste • creates employment • enhances the skills of the employees • creates other businesses through the development of alternative uses for the recycled waste material risks • competition from other entrants to the market ➔ no other current competitors – too remote; better business alternatives elsewhere • delays in shipment/setting up plant ➔ built into business plan • insufficient supply of waste material • rise in collection and processing costs
10. 3 Extending skills Body Para 4: evaluations of solutions Conclusion D Read the title of Essay 4 again. 1 Make a plan for this essay. business plan is sound • expertise + experience to operate a recycling business • approval from local city government obtained • plant + location approved • no adverse environmental/social consequences identified therefore, funding needs are: • ten-year-term loan ➔ to finance the construction of the recycling plant ➔ estimated cost $10 million • three-year working capital loan ➔ to finance the initial start-up and day -to-day operating costs of the business • business plan indicates estimated amount required ➔ $2 million business plan = long-term profitable business + positive ecological and social outcomes In my view/As I see it, the best option is … because … Firstly …Secondly … Thirdly …
10. 3 Extending skills D Read the title of Essay 4 again. 2 Write a topic sentence for each paragraph in the body of the essay. Para 1 The project proposal is to create a waste recycling facility. Para 2 The lack of a waste recycling facility is currently creating a number of problems for the island. Para 3 There a number of possible benefits and some risks associated with the proposed project. Para 4 The business plan is sound and sets out a realistic funding proposal.
10. 3 Extending skills D Read the title of Essay 4 again. 3 Write a concluding paragraph.
10. 4 Extending skills A Expand these simple sentences. Add extra information. Use the ideas in Lesson 3. 1 The proposal is for waste recycling. 2 The practice of dumping waste in a landfill will create a long-term environmental risk. 3 A risk to the project is competition from other entrants to the market. 4 The business plan is sound. 5 This is a long-term business plan. See Skills bank.
Skills bank Constructing a long sentence Begin with a very simple SV(O)(C)(A) sentence and then add extra information. Example: Banks Many writers have claimed that high street banks are very positive offer help. in offering help to small who entrepreneurs request SRIs.
10. 4 Extending skills A Expand these simple sentences. Add extra information. Use the ideas in Lesson 3. 1 The proposal is for waste recycling. Possible answer: The proposal is to set up a plastics, glass and paper recycling business, located on the outskirts of the main city of a small tropical island nation.
10. 4 Extending skills A Expand these simple sentences. Add extra information. Use the ideas in Lesson 3. 2 The practice of dumping waste in a landfill will create a long-term environmental risk. Possible answer: The current practice, where all waste is disposed of in a landfill, is likely to lead to long-term environmental problems, especially through toxic contamination of the land.
10. 4 Extending skills A Expand these simple sentences. Add extra information. Use the ideas in Lesson 3. 3 A risk to the project is competition from other entrants to the market. Possible answer: Although competition is a possible risk to the project, at this stage the remoteness of the location and the existence of better business alternatives elsewhere have deterred competitors from entering the market.
10. 4 Extending skills A Expand these simple sentences. Add extra information. Use the ideas in Lesson 3. 4 The business plan is sound. Possible answer: There a number of factors which indicate that the business plan is built on a sound foundation: firstly, the business has the expertise and experience to confidently build and operate a recycling business; secondly, the project (and the location) has (or have) met with approval from the local city government; and thirdly, no adverse environmental or social consequences have been identified.
10. 4 Extending skills A Expand these simple sentences. Add extra information. Use the ideas in Lesson 3. 5 This is a long-term business plan. Possible answer: This business plan looks to create a business which will be profitable over the long term, while at the same time generating positive ecological and social outcomes.
10. 4 Extending skills See Skills bank. B Look at text C on the opposite page. Complete Tables 1– 3.
Skills bank Writing a bibliography/reference list The APA (American Psychological Association) system is probably the most common in the social sciences. Information should be given as shown in the following source references for a book, an Internet article and a journal article. The final list should be in alphabetical order according to the family name of the writer. See the reference list on page 83 for a model.
Skills bank Author Date Writing a bibliography/reference list Title of book Heffernan, S. (2005). Modern banking. Place of publication Publisher Chichester: John Wiley & Sons Writer or Date (or organization ‘n. d. ’) Title of Internet article Date of retrieval Full URL International (n. d. ) Finance Corporation. Equator Principles. Retrieved July 7, 2007, from www. ifc. org/equatorprin ciples businessreview. com/ Author Date Title of article Title of journal Volume and page numbers Robins, J. (2006). Social responsibility. Banker’s Journal 18, 74– 98
10. 4 Extending skills B Look at text C on the opposite page. Complete Tables 1– 3. Table 1: Referencing books Author(s) Publisher Date Place Smith, R. C. , & Walter, I. Oxford University Press 2003 New York Vogel, D. The Brookings Institution Press 2006 Washington
10. 4 Extending skills B Look at text C on the opposite page. Complete Tables 1– 3. Table 2: Referencing journals Name of journal Volume Pages Journal of Business Ethics 56 99– 129
10. 4 Extending skills B Look at text C on the opposite page. Complete Tables 1– 3. Table 3: Referencing websites Retrieval date URL July 7, 2007 www. ifc. org/equatorprinciples September 20, 2007 http: //www. banking-business review. com/article_feature. asp? guid=7 D 7281 BF-338041 -92 -BAA 8 -7 CC 878489 B 66
10. 4 Extending skills C Look at text D on the opposite page. 1 Complete a further row of Table 1. Author(s) Publisher Date Place Waller, B. Wentworth & Bourne Ltd. 2005 London 2 How could you write this as a reference? Waller, B. (2005). Case studies in sustainable energy projects. London: Wentworth & Bourne.
D What do the abbreviations in the box mean? 10. 4 Extending skills & and ibid. © copyright n. d. cf. compare edn. edition ed(s). editor(s) et al. and other authors same place in a work already referred to no date (used in a reference list if there is no date – as is often the case with web articles) op. cit. the work already referred to p. page pp. pages volume
10. 4 Extending skills E Look again at the text in Lesson 2 and text B on the opposite page. 1 Find all the direct quotations and their source references. 2 What words are used to introduce each direct quote? Why does the writer choose each word? 3 What punctuation is used to introduce each direct quote?
10. 4 Extending skills E Look again at the text in Lesson 2 and text B on the opposite page. Quote Source Punctuation around the quote Introducing phrase + reason for choice ‘seeking with their investment dollars to support corporations that have a beneficial impact on society’ page 100 of: Smith, R. C. , & Walter, I. (2003). Global banking. (2 nd ed. )New York: Oxford University Press. ‘xxx’ No introductory verb. Reason: the quote is embedded within the syntax of the main sentence. ‘investors screen companies for socioeconomic and environmental goals having first met their financial goals’ page 101 of Sethi, S. P. (2005). ‘xxx’ Investing in socially responsible companies is a must for public pension funds – because there is no better alternative. Journal of Business Ethics, 56, 99– 129. As Sethi (2005) states, some … Reason: this is Sethi’s opinion.
10. 4 Extending skills E Look again at the text in Lesson 2 and text B on the opposite page. Quote Source Punctuation around the quote ‘engage in business practices that are viewed by investor groups as socially harmful or morally– ethically repugnant’ page 101 of Sethi, S. P. (2005). ‘xxx’ Investing in socially responsible companies is a must for public pension funds – because there is no better alternative. Journal of Business Ethics, 56, 99– 129. No introductory verb. Reason: the quote is embedded within the syntax of the main sentence ‘voluntary set of guidelines for managing environmental and social issues in project finance lending’ International Finance Corporation (n. d. ). Equator principles. Retrieved July 7, 2007, from www. ifc. org/equatorprinciples No introductory verb Reason: the quote is embedded within the syntax of the main sentence ‘xxx’ Introducing phrase + reason for choice
10. 4 Extending skills E Look again at the text in Lesson 2 and text B on the opposite page. Quote Source Punctuation Introducing phrase around the + reason for choice quote ‘to lend or invest in companies that have poor environmental records…’ page 73 of Sparkes, R. (2002). ‘xxx’ Socially responsible investment: A global revolution. Chichester: John Wiley & Sons. As Sparkes (2003) states Reason: the writer is giving a definition ʻethical, socially responsible and environmental funds include in their investment criteria judgments based on a moral assessment of what a business does …ʼ page 45 of Hancock, J. (2005). ‘xxx’ Investing in corporate social responsibility: A guide to best practice, business planning and the UK’s leading companies. London: Kogan Page. No introductory verb. Reason: the quote is embedded within the syntax of the main sentence
10. 4 Extending skills E Look again at the text in Lesson 2 and text B on the opposite page. Quote Source Punctuation Introducing phrase around the + reason for choice quote ʻIt would not be socially responsible or, indeed, ethical to throw investorsʼ money into businesses with little hope of success, however well meaning they may be. ʼ page 45 of Hancock, J. (2005). ‘Xxx. ’ Investing in corporate social responsibility: A guide to best practice, business planning and the UK’s leading companies. London: Kogan Page. However, as Hancock (op. cit. , ) also points out, … Reason: this is the writer’s opinion
10. 4 Extending skills F Write out a reference list for your essay in Lesson 3, Exercise D.
Tips for Reference 10. 1 Vocabulary部分,学生课前完成练习A、B,熟悉相关词汇和短语,课堂 上 完 成 练 习 C。 教 师 课 堂 讲 解 Vocabulary bank中 “Recognizing ‘marked’ words”和 “Recognizing levels of confidence in research or information”技能, 完成练习D、E。 10. 2 Reading部分,课堂完成练习A、B、C、D、E;教师课堂讲解Skills bank 中的 “Identifying the parts of a long sentence ”技能,完成练习G。 10. 3 Extending skills部分,课堂顺次完成练习A、B、C、D。 10. 4 Extending skills部分,教师课堂讲解Skills bank中的 “Constructing a long sentence”技 能 , 完 成 练 习 A。 讲 解 Skills bank中 的 “Writing a bibliography/reference list”技能,完成练习B、C、D、E。
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