This document summarizes ethical issues in finance that were examined by students in their 6th semester of a BBA program. It discusses the ethical issues of insider trading using the Enron scandal as an example, algorithmic bias in lending and insurance, and India's challenges in balancing its relationship with Russia against ethical concerns regarding Russia's war in Ukraine. It argues that strengthening regulations, promoting financial literacy, and fostering ethical leadership are important for building a more responsible financial system.

1. Course : BBA
Semester : 6th Semester
Year : 3rd year
Faculty name : Dr .NAGEENA KHALEEL
ETHICAL ISSUES IN FINANCE
Examining dilemmas, exploring solutions, and building a
more responsible financial landscape
By:
A.Poornachander 21FMOCBL010005
A.simhadri 21FMOCBL010005

2. The Ethical Landscape of
Finance
• Finance underpins various aspects of our lives,
from individual investments to global
economic systems.
• Ethical considerations are essential for
ensuring fair, transparent, and responsible
practices.
• Ignoring ethical concerns can lead to negative
consequences, including financial instability,
social injustice, and environmental damage.

3. Ethical Issue: Insider
Trading
• Insider trading involves using non-public
information to gain an unfair advantage in the
market.
• This practice erodes trust in the market and can
harm investors who lack access to such
information.
• Example:-The Enron scandal involved executives
using insider knowledge to manipulate stock
prices. They engaged in accounting fraud,
misrepresenting the company's financial health to
investors while selling off their own shares. This
ultimately led to Enron's collapse, wiping out
billions of dollars in shareholder value and
resulting in criminal convictions for those
involved.

4. Ethical Issue : Algorithmic Bias
Algorithmic bias occurs when algorithms used in financial decision-making
perpetuate unfair or discriminatory practices.
This can lead to biased loan approvals, unfair insurance rates, and
discriminatory investment recommendations.
Examples: Studies have shown that algorithms used in loan approvals can
disproportionately disadvantage certain groups based on factors like race
or gender.

5. The Ethics of India Buying Russian Oil
India's relationship with Russia and the West:
• India has been criticized for buying discounted oil from Russia while the
country wages war in Ukraine.
• Some argue that this action undermines Western efforts to sanction
Russia.
• Others argue that India needs the cheap oil to recover from its own
economic struggles.
India's relationship with Russia as a military supplier:
• India has a long-standing relationship with Russia as a military supplier.
• However, this relationship is complicated by Russia’s growing ties to China,
which is a rival of India.
India's difficult position:
• India is caught in a difficult position, trying to balance its own needs with
the ethical concerns of the global community.

6. Toward a More Ethical
Financial System
• Strengthening regulations and enforcement
mechanisms is essential to deter unethical
practices.
• Promoting financial literacy and education
empowers individuals to make informed
decisions.
• Fostering a culture of ethical leadership within
financial institutions is crucial for setting a
positive example.

7. Building a Responsible
Future
• Ethical considerations are not just
optional; they are fundamental to
building a responsible and
sustainable financial system.
• By addressing ethical issues, we can
create a more just and equitable
financial landscape for all.
• Each of us, from individuals to
institutions, has a role to play in
promoting ethical practices in
finance.

8. THANK YOU