Question

Ethics have been a problematic issue when it comes to business and specifically finance and financial services. Explain why ethics is important to finance and business in general and discuss 2 ethical perspectives a person can apply in assessing what the “right thing” to do is.

Answer 1

the root cause of financial crisis 2008 was the gradual collapse of ethical behavior across the financial industry. Banks financial firms were free to behave in their own ways

why ethics is mportant in finance or business

1. ethical investment scheme of investors :the investors are seeking out ethically operating companies to invest in and to be secured and safe

2.consistent ethical behavior of business especially in financial commitments create positive public image, as it relates to the fair market practices in terms of price and consumer treatment.

3.Cant survive for long term:modern commercial environment there is a strong emphasis on businesses meeting their legal guidelines and ethical obligations It is no longer for a business to operate in self-motivated manner, without any regard to the impact it has on the local community.

3.Aginst Professional duty and code of conduct of profession

4.Retain Good Employees:Good employees want to be part of a company whose management is financially transperant.they never accept Cheating of their dues towards medical expenses, leave travel assistance, children education fees et

5.Avoid Legal Problems: a company’s management may find difficulty to run the company if they not fully complying with labour laws( Delays in paying wages) financial contracts Deliberate abnormal delays in payments to Vendors, Dealers. The penalties for being caught can be severe, including legal fees and fines .these negative publicity can cause long-run damage to the company’s reputation .

2 ethical perspectives a person can apply in assessing what the “right thing”

Immanuel Kant’s ethics theory based upon duty to act in the way we see as right. Kant's deontology is guided by morality, or we can say what is right and what is wrong to us. . Deontology says both the actions and outcomes must be ethical.Kant's deontology described as duty,obligation or rule-based ethics.if the rule against the act get away from it

Utilitarianism(John Stuart Mill and Jeremy Bentham) focus on outcomes for the good of the society.if an act that is good for the both party without sacrificing the best of both. It correct form of action be taken to benefit the large number of people.do an act that is beneficial to greater number of person. That is ethical according to Utilitarianism

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