Question

Peter Gitman is the Senior Relationship Manager at the ABC Wealth Management Company which provides financial planning advice to high net worth customers. One of his customers Linda Scott told him that she is thinking of giving approximately HKD500,000 to charity to reduce her income taxes. Peter is also a member of the executive committee of the ‘Lovely Home for Seniors’, a charity organization providing services to the elders. The organization is planning its fundraising activity for the year. Peter recommends that the President of the ‘Lovely Home for Seniors’ call on Linda and ask for a donation in a similar range.

Comment the action taken by Peter Gitman according to the professional and ethical standards.

Answer 1

ANSWER

Looking towards the above scenario the action taken by Peter Gitman is Unprofessional and against the code of conduct for ethical behaviour.

The core value of Professional ethics are :-

• Trustworthiness
• Respect
• Responsibility
• Fairness
• Caring
• Citizenship

In the above scenario there was nothing wrong in Linda investing HKD500,000 to charity and discussing this with Peter as he was a her relationship manager and he had the rights to direct her about the investment to charity.However he may have discussed this with Linda that he is member of "Lovely home for senior" and let her know how this charity works. He may have told her that they are planning to raise funds for the charity and if she wants she can have a discussion with president of the charity have invest her amount there if she wants hence creating a trustworthy and fair environment.

However instead of informing her he informed the president and also advised him the amount she wants to invest which is against the core value of ethics as this will be unfair to her. Hence looking towards the core values of ethics I believe that Peter action where unethical and unprofessional.

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