Question

• Examine ethical behavior within firms in relation to financial management. Provide two examples of companies that have been guilty of ethics-based action related to financial management.

Answer 1

Ethical behaviour within forms in relation to financial management will be focusing at protection of the interest of the stakeholders by following of appropriate code of conduct and financial managers should be responsible for acting with honesty and integrity and avoid conflict of interest in the the relationship with shareholders.

These ethical behaviour sar highly necessary in order to to protect the shareholders interest and help the company in order to grow in the long run in a sustainable way which will be helpful in maximization of the overall organisational value because ethical behaviour will be enhancing the performance of the financial manager as they will be required to maintain a higher degree of stakeholder satisfaction and which will positively influence the financial result of the company.

two example of companies that have been guilty of ethics based actionaction related to financial management would be -

A) the most popular cases of enron in which there was fraud related to Arthur andersen.

B) another fraud will be related to wirecard which has also involved in embezzlement of cash and which eventually led to its bankruptcy.