Wednesday, July 24, 2019
Business Ethics In Financial Institutions Essay
Business Ethics In Financial Institutions - Essay Example There is also damage to the business, as well as the employees and consumers who rely on that organization for their livelihood (Fisman & Miguel, 2008). Business ethics have become part of an organizationÃ¢â¬â¢s foundation. Presently, managers are now well-prepared to deal with and handle situations that come about as a result of moral issues and principles that are part of the financial sector. During the course of everyday life, everybody; consumers to executives, may be affected by business ethics. It is this line of thinking that makes business ethics a crucial element in the handling of everyday business. The code of ethics in every financial sector demands honesty, integrity, and transparency (Huevel et al., 2009). Business ethics are crucial in communicating the core values that are tantamount in the growth and development of society and organizations. Dealing with numbers on a large scale, especially in large corporations, there is always pressure to perform. This may make individuals to try and engage in some unscrupulous activities just to please the organization and stakeholders of the organization. Business ethics, in this case, steps in to ensure that members of an organization have what it takes to handle the pressure and protect the organizationÃ¢â¬â¢s integrity, and at the same time, offer transparency to the internal and external members of the organization. In truth, business ethics may act as an outside source of guidance, even as there is pressure to perform from every angle in the business spectrum. Ethics may also act as boundaries when it comes to the organizationÃ¢â¬â¢s culture. When dealing with finances, it becomes rather tricky to always be on the right track. This means that it is a daunting task to protect... These policies act as guides as they contain specific requirements and identify the organizationÃ¢â¬â¢s expectations of the employees throughout the working process. This leads to a better awareness of the benefits and advantages of having moral principles in everyday business dealings. The environmental factors that surround an organization can also be monitored to ensure that unethical conditions are reduced. A case in point would be the over-competitive nature that people in the organization are exposed to that may lead to unethical behavior. Monitoring such an environment could be of benefit to the growth of ethical standards in the organizations. In conclusion, if firms or organizations are keen on operating a certain way, it is crucial for them to write down moral codes. They need to follow these principles and rules so that they can protect the integrity and honesty of the financial sector. Money is not evil. Rather, it is something that is used to run commercial activities between individuals and organizations. It should not be the cause of all the squabbles and disagreements that are seen on most financial fronts in the world. It may be alright to make a lot of money provided individuals conform to the rules and regulations of the law and society. The disconnection between a firmÃ¢â¬â¢s code of ethics and its activities needs to be bridged. This makes it easier to handle the organizationÃ¢â¬â¢s members, society, and stakeholders as they strive to conquer the international business market.