Question

Ethics involve the moral values and behavioural standards that guide financial advisors as they give advice, make decisions and problem solve on behalf of clients. With reference to the above statement, analyse the effects of unethical behaviour in financial planning and include ethical theories within your analyses

Answer 1

Ethics- Ethics are the moral values and principles, nowadays many companies take ethics into consideration in the working environment and business.

This is true that Ethics are useful in problem solving and decision making, companies achieve brand value and Goodwill when follow ethics.

Effects of unethical behavior in financial planning- Unethical behavior is harmful for business as well as its people. Company is not able to make sound relationship with its suppliers, customers and other stakeholders. Customers will not get attracted towards company's products and sales may come down.

Unethical behavior is harmful for financial planning, if company does unethical behavior, it can affect company's strategies and goals. If company is indulged in fraudulent practices and make falsified financial statements, it will not show accurate and fair picture of company, when stakeholders will get to know about company's misstatements and fraud, they will not deal with company.

Ethical theories: Are as following:

Utilitarian Ethics- These principles say that company should do the greatest good to all the people. Company should take the decision that will benefit all.

Deontological Ethics- Company should treat the people with dignity and respect. Employees are the assets of the company, company should respect them.

Virtue Ethics- Company should make good public relations.

Conclusion- Company that adopts and follows ethics, always succeed. Company should not follow unethical practices because they can spoil the reputation of company.