Question

What is the ethical behavior within firms in relation to financial management and provide two examples of companies that have been guilty of ethics-based action related to financial management?

Answer 1

Ethical behaviour within Firm in relation to financial management will relate to proper management of books of accounts and proper allocation to the financial resources of the company and there should not be any misappropriation and embezzlement of funds so that the interest of various stakeholders could be protected and use of finance could be made efficiently.

it can also be said that the ethical behaviour in relationship with finance within the organisation will be meaning that finance manager should be incorporating the ethical behaviour in his overall financial management in deployment of the fun and he should always be maintaining the optimum dignity in use of those fans and never do any kind of fraud and embezzlement.

two examples of company who have been guilty of ethics based related to financial management would be WIRECARD which has recently been doing the corporate frauds and ENRON would be other example.