Introduction
Albert Schweitzer once said: “Ethics must begin at the top of an organization. It is a leadership issue, and the chief executive must set the example.“ Cambridge English dictionary has defined the meaning of ethics by” rules, principles, and standards for deciding what is morally right or wrong when doing business.” ethics is a crucial term to create a safe, joyful, respectful, and cooperative society. Moreover, an ethical community will try to maximize the positive qualities and minimize negative, unpleasant attributes. From my point of view, the goal of ethics is trying to achieve the highest level of happiness, loyalty, and safety between individuals and society. Moreover, teaching children at a young age, the importance of ethics in different aspects of their life will allow them to develop these ethics when growing. In this report, I will mention ethical behavior in general, ethical issues and the importance of ethical behavior in the major of finance.
Ethical behaviors
Our ethics will ultimately be a bath to our decisions; it will always affect our choices, in our work life or personal life, either positively or negatively. First of all, being honest is an effective way to be ethical. Having honesty in your all of your actions toward your work life and society, in general, will give a lot of great chances. For instance, being honest with your manager will make him trust you in the work he provides you. Moreover, when people around you watch you make a moral decision, they will trust you whether it is in their personal life or work life. Second of all, treating others with respect, which means demonstrating polite behavior and dealing with others equally regardless of who they are. Treating co-workers with respect even when you’re in a higher position. Third of all, obeying the law; which means being committed to obligations, and never breaking the rules. Fourthly, being responsible. Having responsibility for your work specifically will allow you to get promoted to a higher position. Fifthly, an ethical executive should always be caring, which means being compassionate, and in consideration of others feelings.
Importance of ethics in finance
Companies or any workplaces should work under a specific code of ethics since it is a necessary procedure to protect employees’ rights, make difficult choices easier, develop the function of work, improves the relationship between co-workers, and builds a good reputation. Ethics are needed and should take a considerable part in the financial industries. “Finance is the process of managing money and maintaining a set of books that provides insights on how your company earns and spends its cash”. This process must attend with honesty and integrity to allow you to present your financial situation accurately. Unfortunately, many companies work under many unethical financial issues. For instants, Walmart is a known company in America, accused of many corrupt practices in the financial support of its employees, which made this giant company get under many lawsuits from its employees. Walmart accused of discrimination against women by giving all the right opportunities and high possessions to men. There is over 70 per cent of women working in Walmart but only a little amount of them working as managers. Besides, women are underpaid, and men are getting paid more. Moreover, Walmart is also facing another issue which is all employees, men and women, managers or regular employees’ wages are low. In result, since Walmart health insurance is costly, Walmart employees are facing adversity paying for their health insurance.
Ethical issues in finance
There are countless of ethical issues that happen these days in financial industries. Starting by mentioning one of the most common ethical issues in finance which is misappropriation of assets. Misappropriation of assets means the usage company’s property for other purposes rather than the company’s interests. Second of all, holding the bills of other vendors on silly reasons and dealing with other vendors to avoid paying previous vendors. Third of all, opening multiple bank accounts in different banks to avoid loans of earlier banks. Fourthly, accepting private finance just from those who are ready to give personal favors. Fifthly, making fake bills of purchases with high costs and losses to prevent bonus payment to employees.
Conclusion
To sum up, ethics should consider as an essential part of our daily life. Having ethical behavior like respect, honesty, integrity, and responsible toward your society, your work and your personal life in specific will provide you with many significant changes in your life such as building strong relation and connection between your manager, and your co-workers, and many other great chances. While on the other hand, having unethical behavior will harm our society. Furthermore, ethical issues in finance, such as misappropriation of assets, can lead to significant problems toward the company.
References:
Edward Hennessy (1933 -), Philanthropist and Retired Chairman and CEO of AlliedSignal. Inc. Ethics Quotes and Morality Quotes Related to Decision Making. (n.d.). Retrieved September 22, 2020, from https://www.decision-making-solutions.com/ethics_quotes.html
Gartenstein. D. (2019, September 20). The meaning of finance and Importance of Ethics in Accounting and Financial Decision Making. Retrieved September 21, 2020, from https://bizfluent.com/about-6463277-importance-accounting-financial-decision-making.html
ETHICS: Definition in the Cambridge English Dictionary. (n.d.). Retrieved September 21, 2020, from https://dictionary.cambridge.org/us/dictionary/english/ethics
Post navigation. (n.d.). Retrieved September 21, 2020, from https://www.freeonlineresearchpapers.com/walmart-unethical-business-practices
Unethical Practices in Finance and Investment Decisions. (2017, January 31). Retrieved September 21, 2020, from https://www.yourarticlelibrary.com/financial-management/unethical-practices/unethical-practices-in-finance-and-investment-decisions/99622
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