Boardroom morality and the 'fit and proper' test: An Aristotelian perspective

Research output: Chapter in Book/Report/Conference proceedingChapter

Abstract

This chapter argues that Aristotle’s character-based ethics are immanent in the regulatory frameworks of the UK financial services industry; and that questions of character can never be entirely removed from the regulator’s assessment of a person’s suitability to work in it. It proposes some Aristotelian methods by which this factor can be taken into account. The ‘Fit and Proper Test’ is a cornerstone of the UK’s approach to regulating the industry. Only people who pass a test can hold certain senior roles and responsibilities. While most of the test concerns empirically measurable matters, such as compliance with professional standards and legal codes, it retains an element of character judgement—applicants need to have honesty and integrity. Aristotle provides the definitive account of how individual ethics derive from character. This chapter argues that he also provides practical guidance for contemporary financial regulators, as they seek to prevent unethical behaviour.
Original languageEnglish
Title of host publicationEthical Discourse in Finance
Subtitle of host publicationInterdisciplary and Diverse Perspectives
EditorsMarizah Minhat, Nazam Dzolkarnaini
Place of PublicationSwitzerland
PublisherPalgrave Macmillan
Chapter3
Pages39-52
Number of pages14
ISBN (Electronic)9783030815967
ISBN (Print)9783030815950, 9783030815981
DOIs
Publication statusPublished - 26 Oct 2021

Publication series

NamePalgrave Studies in Impact Finance
PublisherSpringer
ISSN (Print)2662-5105
ISSN (Electronic)2662-5113

Keywords

  • finance
  • aristotle
  • fit and proper test
  • business
  • ethics
  • philosophy
  • business ethics
  • Aristotelian finance
  • Aristotelian financial regulation
  • financial virtue ethics
  • Aristotelian fit and proper test
  • Aristotelian business ethics

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