Question

Think about the possible ethical considerations in Finance that you've read about in a book or experienced in your lives. Think about prevalent examples in the news. One such example would be the Wells Fargo case from 2017. What are your viewpoints on how ethics play a role in corporate finance and how corporate social responsibility plays a role in ethical considerations.

Answer 1

Ethics plays a very important role in corporate financing. Ethics are something thats taught from the very beginning because they play a major role in the life of professionals. Every professional body has a certain set of ethics and code of conduct to which all their members and affiliates must abide by. If they fail to do so, they could be removed or dishcarged from that body and their qualification taken away.

The reason ethics is so important is because when working with high level firms and during the course of your work in almost any firm, someone dealing with finance and finance related works and tasks will definetely have to go through a phase when they have to decide using their ethics what has to be done, and whether what their doing is right or wrong.

Ethics is like the base or the core values that is being carried by a professional and his ethics is what he believes in and what makes him realise what is right or wrong. Your ethics may come at stake at certain times when you are ordered by senior authority to conduct some breaches or work which is actually not right accoridng to what you have studied. Failing to do so may actually result in loss of job etc. At this time a professional is really tested and has to make that choice as to stand by his ethics or save his job. This is just one example of how it comes into the life of someone in corporate finance.

Corporate social responsibility is the steps thats taken by a company to safeguard the environment or the steps taken to reduce the effect on our society and surroundings along with the growth of the company. Corporate social responibility plays a role in ethical considerations because most of the steps and measures taken by many of the firms is in relation to this. They have to ethically evaluate the situation and understand the necassery steps that have to be taken to ensure that they are being socially responsible.

If your firms corporate social responsibility is on the positive side, your firm will have a good image in front of the locals and all those associated with the firm. It increases goodwill and will gather public support. So it is highly necassery to make sure that ethical cosnsiderations are made when plans of corporate social responsibiity are discussed and executed.

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