Question

1. Discuss the impact that ETHICS play in our financial markets.

2. Who is held responsible?

3. What standards are applied?

4. How does it impact business borrowing?

Answer 1

1. Ethics will play an important role in our financial market through helping people engage and promote physical behaviour that will be promoting the trust and robust Global capital market and it will help in developing a healthy society.

Ethics means that professional should be adopting to code of conduct that will be fostering trust and an efficient and transparent global market because professional can only exist within an industry when those professionals are acting with transparency along with integrity and trust.

2. Management who are charged for governance of the entire business are responsible for managing ethics in the business and employees who are engaged in doing various type of work are also engaged in maintenance of the highest standard so management and employees are responsible for maintenance of high ethical standards.

3. Ethical standard are set of principle which are established by the organisation in order to communicate underlying moral values and this will be used as a reference for decision-making processes.it is governed with securities and exchange rules with respect to section 406 of Sabanes Oxley act.

4. Yes, it will impact the business borrowing because a business with high ethical standards will be more likely to have a good creditworthiness reputation because these organisation will be high integrial organisations would be paying their debt repayment on time and borrowing will be very easy for these organisations because they are following ethical standards and lenders will be assured of their payment of the loan and they will be assured of ethical integrity.