Question

Chosen a profession in the Financial Services industry and identify 2 ethical dilemma that you may likely to encounter in the profession

Answer 1

Financial service industry includes banks, mutual funds, insurance firms, or pension funds who work in financial arena.

The ethical dilemma lies in the following areas

1) Confidentiality - The professionals in this industry deal with confidential financial information of clients. Handling and protecting such confidential information becomes ethical issues for a professional

2) Unchecked self interest turning into greed - If self interest is not checked, then it turns to greed and selfish behavior. The finance professional should place clients interest above his own interest. Greedy behaviour of the professional should not affect client negatively. The professional has knowledge of all financial products. So, for getting good commission he should not recommend any such product which will provide less benefit to client and more benefit to professional

3) Conflict of interest between employer and employee - A faulty reward system from the employers side many induce unethical behavior by the employee. So, the employer should reward employee sufficiently to motivate them to work ethically and efficiently.