Ethics for Financial Professionals

Contents

1 Decision making model:

2 Justification:

3 Application.

3.1 Facts:

3.2 Issues involved:

3.3 Stakeholders:

3.4 Alternatives:

3.5 Consequences of the Alternatives:

3.6 Decision:

3.7 Lessons:

4 Sources:

1 Decision Making Model

Utilitarianism is an ethical philosophy which decides correctness from wrongness by concentrating on performance. It's a means of continuity. Utilitarianism claims that the one that provides the best to the largest amount is the ethical one. That is the only legal justification to explain military action or war. It is perhaps the most prevalent approach to corporate moral logic since it allows for costs and advantages. However, it's impossible to know with certainty whether the results of our decisions will be positive or negative and we cannot foresee the future. This are one of the limits of utilitarianism.

It is therefore difficult for utilitarianism to take on board principles like equity and human rights. For instance, imagine that a hospital has four patients that rely on organ transplantation in their lives: a heart, lungs, renal and liver. A stable person can be processed in the hospital to save four lives at the cost of one lifetime. The greater value with the highest amount will be possibly. But few people, let alone the most conscientious, would think this was acceptable. Therefore, while utilitarianism is perhaps the most rational framework for deciding between right and wrong, it is obviously constrained (Hartman et al., 2014).

The concern is how net reliability can be strengthened. Their moral philosophy is based on the principle of efficiency, that the behaviour that creates the best is morally acceptable. The spiritual misdeed leads to the common good being diminished. A utilitarian, for example, would argue that if any of the armed robbers looted a bank in a heist, as long as there are more people benefiting from the robbery than people suffering from the robbery, the heist would be more virtuous than morally acceptable. If more people die from the heist, and less benefit from it, the heist would be morally erroneous in the utilitarian principle.

Utilitarian ethics is a utilitarian ethical philosophy, which mainly deals with the effects of ethical decisions; hence it can be defined as teleological or consequential principle which are basically the same, each with an assumption that the result of the act is or is not moral. Teleological thought takes into account that the ethical choice rests on the results ("end") of the operations. An individual makes the right decision through teleological reasoning if his decisions have positive consequences.

2 Justification

It is one of the most popular and important philosophical theories. Utilitarianism. Like other examples of consequentialism, the central concept is that it relies on their consequence whether behaviour is morally acceptable or false. In fact, only the good and bad effects created by the intervention are important. The variation between individual acts and forms of action is important in this essay. Act utilitarian’s concentrate on individual acts (for example the assassination of Abraham Lincoln by John Wilkes Booth) while utilitarian’s rule on activity forms (for example, murder or robbery) They focus on the consequences (Wolcott, 2020).

Utilitarian’s claim that morality is intended to change life by increasing the amount of good things (e.g. joy and happiness) in the universe and that negative things (e.g. sadness and misery). They deny moral codes or schemes composed of commands or taboos based on customs, practises or directives imposed by politicians or superstructures. Utilities assume that that the constructive application of a spiritual principle to humans (and even to non-human beings) is valid or justifiable.

Utilitarianism is a straightforward philosophy because it simply consists of one concept of evaluation: do what achieves the most outcomes. The philosophy is complex in fact, though, because we cannot grasp the basic concept until we know (at least) three things: a) what things are good and bad; b) how we can strive to optimize for good (i.e. what people or groups), and c) what actions and policies etc. are right or wrong due to their concrete outcomes (the actual effects that our actions produce) or expected by them.

3 Application

The Utilitarianism approach is one of the most common approaches to making ethical decisions, especially decisions with consequences that concern large groups of people, it instructs us to weigh the different amounts of good and bad that will be produced by our action. Tom Holland feels he needs to fully consider the situation and context. Tom needs to determine if there is something he has to do about the situation, or whether there is some rationalization of the situation because his action will affect a large number of people. Utilitarianism is a philosophy of utilitarian ideology that seeks to optimise the ultimate good; both good and good. Jeremy Bentham and John Stuart Mill are the notable authors identified with utilitarianism. The utilitarians are hedonistic, and their positive intentions are related to enjoyment or satisfaction. (Driver) Thus, classical utilitarianism drives rational policy-makers to make choices that are more beneficial to all. To the degree that others use the word interchangeably is also closely correlated with continuity. Utilitarism and consequentialism have many of the same values.

Tom Holland, a Melbourne accounting and finance graduate, entered a leading insurance corporation in Melbourne and only began playing his part after a nice induction and a good mentoring programme. Tom has already won some major customers and considers his job that empowers them to thrive and expand professionally. Tom has been managed by Paul Davidson, the CEO, and in a brief period they developed a successful college partnership.

Tom finds a multitude of critical manufacturing expenses, mistakenly distributed in the form of other expenses and in some cases also as charities, while operating with budgets and documents. Tom found that these costs covered a variety of expenditure, which included payments from the insurance agencies, after reviewing receipts and reports in more detail. This include hosting sporting festival guests and luxury meals in 5-star restaurants for the employees.

Tom recently heard about Paul Davidson, the CEO, who offers family and friends tickets for sport activities. Tom has uses his business credit card to earn frequent flyer points for flyer airlines, which are only used by the executive and their respective family members. On the basis of his findings, Tom finds Paul Davidson to discuss these practises and expenses very frankly, while stating that they are common companies and networks.

Business governance reflects both written and unwritten moral values which are vital to an organisation 's existing operations and future expectations. Differences in the cultural backgrounds, organisational capabilities and strategic orientations will vary from one organisation to another. Both types of enterprise are protected by the governing principle of corporate ethics. It is a matter of possessing the information to assess the distinction between right and wrong actions.

Many who draw ethical decisions from the point of view of shareholders rely on actions that are of best concern to their owners. Decisions are motivated by the need for the owners of the corporation to increase their return on investment. People from this viewpoint who consider ethics believe that ethical corporate practises make the most profits. However, priority-setting for shareholders can in some cases influence corporate ethics. Indeed, the future is motivated by profit-driven intentions aimed at maximizing shareholders ' interests. Such prejudices may lead to the execution or avoidance of highly serious acts by corporate managers.

3.1 Facts:

This is an ethical situation in which Tom Holland a graduate of accounting and finance who has worked with a top insurance firm discovers that a number of major and material costs were assigned by the insurer as well as other costs which included a variety of costs covering the contributions provided by insurance participants. Whereas Tom's experience makes him conclude that, while the Chief Executive Officer believes this to be natural, the way these expenses are classified and reported does not correlate significantly with the strategy of the company in effect nor is it technically necessary to obey the government regulations. When he figures out what other businesses do, he learns that this is the standard in all other insurance agencies, in which his schoolmates are working. Paul Davidson, the firm's chief executive officer, has led many to think that the organisation is going to support and advertise the entertainment of its guests in sporting activities and luxurious suppers for its employees at five-star restaurants (Wolcott, 2020).

3.2 Issues Involved:

The CEO has built up an atmosphere inside the business where now everyone considers the practise normal. That is why Paul not only speaks about the job, but also encourages events and expenses. Paul claims that such activities allow the business to gain competitive advantage as it is necessary for the preservation and attraction of successful professional relationships. According to Tom, those procedures and expenses do not occur because the use of the money by participants may contribute to the paying of additional costs. Nevertheless, Tom is in a position to address the dilemma and if he takes any steps to explain this because the company's actions directly violate policy and laws, then the company will be at risk of losing contracts and this would jeopardize the company's existence.

3.3 Stakeholders:

The case requires many parties who are differently affected. The business consumers are one of the stakeholders. They are the employees of the insurance firms that pay the policy. They are significant partners and, from this point of view, the actions of the organisation to provide visitors and employees with additional fees is clear as they are paid to fund these activities. they use the donations of these members. The Chief Executive Officer is the next player. The business the company does is natural from its viewpoint and just seeks to promote and market the company in a competitive way. Tom is the other participant. Tom is particularly affected because he works in the department that recognizes and addresses certain problems for corrective actions. He is most influenced by the dishonest dilemma that businesses and the culture of business tolerate. The company staff is the other stakeholder. Most of them are the beneficiaries of the operation because the funds raised from members' dues are used for the extensive care they earn (De & Tenbrunsel, 2012).

3.4 Alternatives:

There are two options for Tom's solution to this ethical dilemma. One choice is for Tom to take steps to illustrate these concerns and it turns out that the company's conduct is in fact contradictory to politics and regulation. The other choice is to stay quiet and do nothing about the situation. The Utilitarian Approach analyses an action in terms of its consequences or outcomes; e.g It strives to achieve the greatest good for the greatest number while creating the least amount of harm or preventing the greatest amount of suffering. If Tom were to take some action to bring these issues to light and it turns out that the behavior of the firm is in fact against policies and regulation, then there is a risk of the firm losing the contracts and this may jeopardize the survivor-ship of the business. In the worst case, it may lead to the risks of bankruptcy or laying off some employees, most of who are Tom's good friends and they may encounter personal financial problems as a result. The utilitarian approach is the best approach to because it instructs us to weigh the different amounts of good and bad that will be produced by our action. The other approach like egoistic, common good approach, rights and justice approach which do not consider the outcome results of the action taken. In this context Tom need to make a decision that will cause less harm overall.

Ethical decision making (Hartman et al.2020) generally involves a series of steps that occur when ethical issues are considered. Ethical decision making occurs when an employee negotiates ethical dilemmas experienced at work, a process that is influenced by various ethical standards that are referred to as situations encountered. The unethical activities that are taking place in the company and even the competitors, Tom need to evaluate the situation keenly and ensure the outcome provides less harm and more good (Kang& Zhang, 2020).

3.5 Consequences of the Alternatives:

If Tom chooses to take action with the first option, the consequences for him, the CEO, the employees and the company may be catastrophic. It risks losing contracts for the company and could threaten the company's survival. It can also threaten bankruptcy and dismissal of employees. For the workers, they may be fired and financially affected. He loses Paul to Tom, his mentor and comrade, as well as his upward career. The representatives are expected to search for another business that does not recognise their needs due to the fact that the business may be terminated. It is dishonest to remember that the implications of not reporting wrongdoing are that Tom has dedicated himself to honesty and detests his preparation and education for activities at work. The personal dignity and essence of Tom would also be affected. If not reported, the actions impact participants, as additional fees that are not required will continue to be paid.

3.6 Decision:

While the decision to reveal the ethical conduct is going to have big ramifications at first, it is still the right thing to do, for the common benefit of the majority of people in all insurance companies would be the consequences of this step in the future. The only way to end the rot and ethical culture that is built into insurance companies could be disclosing the issue. The negative results would be immediate, while the positive effects are long-term and may lead to a substantive ethical change whereby professionalism is consistently and often employed by insurance companies.

3.7 Lessons:

The field of business calls for employees to behave with dignity and to work hard to achieve their established goals. The audit staff are not required to make supervisory decisions. -- individual should be judged individually because this contributes to honesty on the ground. This may, however, adversely affect corporate ethics as the auditor might be less experienced in making decisions that lead to uninformed decisions being made. Ethics requires that managers and subordinates work as a team to ensure that appropriate decisions are drawn. The business sector needs and states that if appropriate a company may access other non-audit services. This guarantees the connexion between various organisations and departments and can be used to audit the auditing business. Ethically, this is appropriate since each player in the field needs the assistance of non-related players in the same field to ensure their proper functioning (De & Tenbrunsel, 2012). In short, corporate ethics helps shape the way companies work and serves as a guideline to enforce those company laws. Therefore, the originally laid down guidelines must be revised to ensure that they adhere to principles and that they do not. This is why people are more interested in ethics and use them as a factor when choosing a player in a business. In other words, any organisation that lacks ethics will easily be dismissed.

4 Sources for Business Ethics

Hartman, L. P., DesJardins, J. R., & MacDonald, C. (2014). Business ethics: Decision making for personal integrity and social responsibility. New York: McGraw-Hill.

De, C. D., & Tenbrunsel, A. E. (2012). Behavioral business ethics: Shaping an emerging field. New York: Routledge.

Hartman, L., Inguaggiato, G., Widdershoven, G., Wensing-Kruger, A., & Molewijk, B. (2020). Theory and practice of integrative clinical ethics support: a joint experience within gender affirmative care. BMC Medical Ethics21(1), 1-13.

Wolcott, G. (2020). A bar too high? On the use of practical wisdom in business ethics. Business Ethics: A European Review.

Rajiah, K., & Venkataraman, R. (2020). Social determinants associated with ethical decision-making among community pharmacists. Ethics, Medicine and Public Health14, 100512.

Kang, F., & Zhang, H. (2020). Ethical leadership and newcomer adjustment: examining a moderated mediation model. Leadership & Organization Development Journal.

Remember, at the center of any academic work, lies clarity and evidence. Should you need further assistance, do look up to our Business Ethics Assignment Help

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