Current

Ethical Issues In Finance

               Financial managers have the dutyto reports, check  accounting functions, plan                  investment strategies and to check  direct cash management function it     involves   in branch management functions at banks and other financial institutions.some ethical issues faced are 

[1] Accuracy

A company’s financial manager is required to ensures that all financial publications are accurately and fairly made and  the financial condition of the company is properly mentioned. Accounting errors and financial fraud are increasing day by day, it will damage the interests of shareholders, employees and affect ther confidence in the financial system of the company.

[2] Transparency

 Financial documents reflect the company's performance with reference  to its peers, and the internal strengths and weaknesses of the company. The Regulatory agencies are required to publicly trade companies to submit periodic financial statements and make full disclosures of material information so that appropriate informations can be drawn.

[3] Timeliness

Timely financial information is very  important and thus it should be accurate and transparent. Management, investors and other stakeholders require timely and properly arranged information to make or to take right decisions. Many cases  publicly are present within traded company's stock.

[4]Integrity

Financial managers should strive for the important component known as integrity. Customers, shareholders and employees are to be in a condition where they can trust a financial manager's words. Managers should not allow , bias conflicts of interest, they should not present fake documents. Managers should disclose real conflicts of interest, such as an investment position or an ownership interest.

[5] Sales vs. Advice

The boundaries between sales and  the financial industry are becoming increasingly opaque, as there are new platforms and there are a lot of methods for business  to emerge. 

Current

Unethical Issues In Finance

There are many  unethical issues faced by the finance some of the unethical issues faced by finance managers or department are:

[1] Profiteering

Profiteering is the  gain of making more money at public expense. It is be cheating the government of the nation, or it may be by robbing the developing countries, or it may be by over-charging consumers and exploiting them for medical, food and other needs.profiteering has a very unethical aspect.since it will decrease the number of customers

[2] Unethical banking practices

The unethical ways of banking practices, particularly million rupees failed loans, inflicts pain on bank customers whose pockets

are being exploited. the taxpayers who are innocent are paying for these loses.companies may bribe the banks and present the fake financial informations and claim benefits from the government.this is one of the major sector were a large amount of unethical practises are carried out

[3] Illegally-obtained funds

Here there  are no prper indications as to the amount of illegally-obtained funds in the banking system througout the globe.some companies illegally obtain funds by cheating the banks,government etc.... the most effected department is the income tax department.many people are not paying the tax which is a great lose for the government of the nation.

[4] Investment fraud

 An advance-fee is the most common feature of financial frauds. posing as a agent for a bank, oil money etc, offers a business loan on favourable terms. The victims may be offered low-interest loans or high-interest investments in return for payment of the advance fee. Once the fee is paid, the loan or investment disappears. And thus many new young and vibrant investors will go out of the field.

[5] Unethical practices of accountants

Although there are many ways by which accounting standards are set many companies do unethical practices in keeping proper accounting information inorder to escape from income tax .