Question

Critically evaluate the role and influence of ethics in corporate finance decisions within a company Use examples to support your answer. This is essay question, it requires detailed explanations

Answer 1

Ethics are very important in the long-term success of a company because ethics is to be incorporated in today life of a business in order to succeed in the long run.

Incorporation of ethics is inclined towards management of work in such a way that it is based on certain principles which is high code of conduct and ethical management of overall due course of action in order to succeed and survive in the long run.

long-term vision should only be framed after incorporation of a ethical code of conduct because even though the primary motive of the company is to make profits, ethical code of conduct helps the company in generation of long term benefits and retention of its customer for a long period of time.

It can be exampled through fall of Lehman brothers which did not incorporate the interest of its stakeholders and it was doing unethical business by exposing itself to excessive risk so the business went bust and it also eroded the shareholders wealth