Financial and Banking Institutions

The company expects a high-level integrity from all of its employees due to the nature of the business it’s in. Which is the financial industry? – JP Morgan Chase shares its code of conduct with its heritage and why it is important to set the highest ethical standards in all of the business. Moreover, the company sets a high standard for managers to supervise and properly channel any

The author Robert Solomon argues that ethics has to an integral part with regard to business management. He does not believe that business management must include unethical or illegal methods to be able to succeed. Solomon preaches that business management is not as simple as obtaining revenue. “Businesses need to abide by fair policies and their owners have to be ethical in dealing with their customers” (Shaw p. 37). The author acknowledges that while illegal practices in business management could bring positive results at first, eventually the business is bound to fail. This is why Solomon recommended eight important policies that can help businesses in integrating ethics into their operations.

We as business owners, management and or in a role of authority must set, address and comply with a solid foundation of ethics. “A code of conduct is the single most important element of your ethics and compliance program. It sets the tone and direction for the entire function. Often, the code is a standalone document, ideally only a few pages in length. It introduces the concept of ethics and compliance and provides an overview of what you mean when you talk about ethical business conduct.”

In this paper, I will address the Farrows bank, and the many issues that were involved with the running of it. I will address Thomas’ Managerial Hubris, ethical decision and the Managerial Hubris, the pressures of making an ethical decision in the Farrow bank, and finally if the bank had an ethical business culture would anything have changed.

The banking industry consists of almost sixty-five hundred banks that are insured by the Federal Deposit Insurance Corporation (FDIC). Out of these, there are eighty-one substantially large banks in the United States that are publically traded, which is where the market structure and industry information will be based. However, as with the rest of the country, these banks are very concentrated, with the largest banks accounting for over half of the market as well as accounting for the largest amounts of revenue.

The requisites in the Code of Ethics represented in the Sarbanes-Oxley Enactment have formed a foundation in the world of business because business administrators and stakeholders are now mandated to abide by the guidelines in the Act but they still need to be improved. When tackling the issue of social responsibility of a corporate it is of utmost significance that transparency be a key contributor, while ethics is considered by most in business as an oxymoron. People that lack moral standards will more often than not look for loo-holes in this relations due to their evil behaviors, however business principles and moral publication should be ensured so that such behaviors are dealt with in line with the law. “There has been a number of scandals reported in relation with accounting fraud and bad corporate governance as this are termed the biggest reasons why businesses are failing as high-profile organizations continue to subside. Investor confidence levels dropping in relation to financial capital markets due to investors incurring losses and correction mechanisms of the market that were in place were inadequate thus forced the enactment of the SOX Act by Congress (Jain,

The previous uncertainty is enhanced by a lawsuit that alleged that UST had violated antitrust and advertising laws and participated in anti-competitive conduct. Should UST lost the suite, it will be more vulnerable with competitors.

Maintaining ethical principles in the corporate environment is essential to the success of any business entity. As such, managers need to ensure their companies are run professionally with regard to the fundamental ethical principles. In the article, “Clinton promises to hold Wells Fargo accountable,” Amanda Becker gives an overview of Hillary Clinton’s efforts to sue Wells Fargo for accounting fraud. The article explains how the company’s employees acted unethically when they opened multiple bank accounts to enhance the company’s sales (Becker, 2016). This action defiles the fundamental principles of corporate ethics. This article is thereby in line with this week’s readings as it highlights the importance of ethics in the corporate entity.

Businesses, investors, creditors rely on accounting ethics. The accounting profession requires honesty, consistency with industry standards, and compliance with laws and regulations. The ethics increase the responsibility and integrity of accounting professionals, and public trust. The ethical requirements influence the management behavior and decision-making. The financial scandal of Enron and Arthur Anderson demonstrates the failure of fundamental ethical framework, such as off-balance sheet transactions, misrepresentation of financial statements, inaccurate disclosure, manipulations with earnings, etc. The confronted accounting profession and concern for ethics in businesses forced regulators to revise the conceptual framework of accounting processes.

The report shows that without taking ethics seriously and having a strong internal control system, a company might conduct too aggressive an approach of doing business that undermines both internal and external business environments. Because of both external corruption environment and internal pressure to grow business and stay competitive, financial institutions make

Today’s business world presents numerous ethical issues. In today’s world above board/moral ethics in organizations do not often materialize intuitively. Organization must strive to provide employees with a clear understanding of the overall company vision. This will aid employees in practicing the code of ethics, policies and procedures in the workplace. Companies must be unwavering in continuously delivering the uppermost ethics of provision in which customers, applicants and employees are entitled to under fair business practices. One major core value is to uphold responsible and fair business practices.

Ethical issues have greatly transformed in our lives since the great Enron, Xerox and other huge corporations proposed big profits showing earnings of billions of dollars and yet in reality facing bankruptcy. These corporations faced great trouble with the federals and state for manipulating financial statements. But not only corporations can be blamed on this, accounting firms were involved in this as much as the corporations were. With the business stand point, ethics comprises of principles and standards that guide behavior. Investors, traders, customers, and legal system determine whether a specific action is ethical or unethical. Ethical issue is a vast subject, but we will look at the niche

While dealing with the bank’s objectives, an efficient and proper code of conduct is expected from the workers and the directors.

Codes of conduct are policies including rules such as maintaining honesty, attitude, and respect (Traveler, 2009) for co-workers, the organization and customers. Only by separation of personal ethical choices in the work place, will an organization succeed and flourish. It is never appropriate for any employee, management or otherwise, to conduct business for personal gain. The people who become harmed lose trust, confidence, and the expectation of themselves and of the people who chose to put their personal ethical choice before the needs of the customer and business.

DM solutions can be applied to different kinds of organisations, in diverse fields such as biotechnology, finance, sports, manufacturing, retail and education. These solutions are mostly integrated with decision support systems. The following are a few examples of DM solutions [84]:  Finance - The finance and banking industry uses DM solutions to determine customer loyalty and the credit risk of customers. DMsolutions help the industry with money laundering investigations and enable customised plans to be prepared suitable for customers’ requirements. Insurance companies also use DM solutions to make customised plans suitable for customers’ requirements and to detect any fraudulent claims by customers.