This document discusses ethics in finance. It defines ethics as the study of concepts of right and wrong behavior. Ethics in finance means applying general ethical principles specifically to finance. Ethics in finance are important as financial components are essential to all businesses and industries. Upholding ethics in finance provides moral standards, builds confidence in business dealings, and promotes harmonious activities and behavior. Some ethical issues in finance include insider trading, hostile takeovers, asset misappropriation, and tempering books of accounts. Ethics are crucial to the financial world as they form the basis for trust within the system.
3. Meaning of Ethics
Ethics or moral philosophy is a branch
of philosophy that "involves
systematizing, defending, and
recommending concepts of right and
wrong behavior".
4. Meaning of ethics in Finance
Ethics in finance means the
specification of the general principles
of ethics for the purpose of application
and compliance in the field of finance.
5. Why Ethics in Finance:
Ethics in Finance is one of the main things which
everyone has to follow from small, medium and big
level company
It is considered very important as without financial
Component no business can run for long time.
Ethics in finance may vary from industry to industry
but everyone is liable to do their work at utmost
good faith.
6. Importance of Ethics in Finance
1. Provides a moral code of standard
2. Ethics in finance channelizes confidence
in business/corporate dealings
3. Ethics makes business/corporate
behavior and activities harmonious
7. Code of ethics in Finance
Protecting the financial interest of
clients
Conducting business with high
transparency
Respecting and maintaining
confidentiality of any information
entrusted
8. Ethical issues in Finance:
Insider Trading
Hostile Takeover
Asset Misappropriation
Tempering books of accounts
9. Conclusion
Ethics are inextricably connected to the
financial world as they form the basis for
trust. Without trust the system is either
dysfunctional or unstable or both, as the
recent experience has shown.