Question

Select a publicly traded firm of your choice that enjoys a large shareholder base. What challenges may this firm have encountered (or is likely to encounter) in terms of (a) incorporating ethics into financial management practices, and (b) maintaining/sustaining ethical practices in the face of internal or external (market) pressures? What would you do if you encountered an unethical situation at work? Frame your response relative to the financial manager's fiduciary duty to maximize shareholder's wealth.

Answer 1

Based on different articles on ethical practices and learnings as it is difficult to find ethics related articles on a publicly traded agency inside the public domain.
demanding situations being faced by company entities in Incoporating ethics into economic control practices.
- normally in most of the coporates, the ethical behaviour in economic management practices could flow from the CEO or CFO of the enterprise. The cost system they groomed over their years of experience will guide them in their moves to a selected scenario requiring ethics display. Their moves will perculate down the road to all personnel contributors and could encourage the relaxation of the enterprise to respond with such ethical behaviour in positive situations. besides few corporates, most of the entities would no longer have a layout written policy on ethics to guide the personnel throughout the organization. Even within the businesses which have such written record, whether or not those are being practiced in its true spirit is a million dollar question. hence, while there is a change within the top executive the ethical behaviour of the employer also changes according to his instructions. To counter this issue, the corporates have to build appropriate ethical responses of their structures and strategies in order that every worker recognises it when delivering their responsibilities. eg., implementing maker / checker idea in all the financial transactions guarantees that each transaction is going thru a couple of person before it is finished. in addition, imposing inner economic Controls in actual spirit throughout the capabilities might useful resource in restoring ethical behaviour within the agency.
demanding situations in maintaining ethical practices in internal/outside pressures:
- while the country in which a business enterprise operates is corrupt, sustaining ethical practices is pretty difficult. additionally, whilst the top management isn't clean in their technique to statutory compliances and disclosures, the executives working under them could be below critical strain to indulge in non moral practices to protect their activity or to earn right name a few of the pinnacle management. To address these demanding situations, the finance supervisor have to have a robust fee gadget and fearlessness in handing over his duty. There can be times wherein there may be battle between his values/ethics and the expectations from his CEO. He need to be clean in his mind that his movement should be within the appropriate boundary of moral behaviour like due diligence, confidentiality, honesty and many others., . If there is any conflict, then he ought to first try and solve it by using escalating to the ombudsman or the board of administrators fo the organization. If the battle could not be resolved even after such measures, then he must be organized to go away from the business enterprise and circulate to the only that's excessive in fee gadget and matches to the moral behavioural requirment. For doing this, he should cognizance on sharpening his know-how of finance processes/rules so that his employability is high at any factor of time. knowledge offers self assurance to the finance expert to confront such ethics associated conflicts.