Explore tens of thousands of sets crafted by our community.
Ethics in Finance
20
Flashcards
0/20
Insider Trading
Insider trading undermines market fairness and transparency, leading to a loss of investor trust and potential legal repercussions for the company involved.
Executive Compensation
Excessive executive pay can lead to public outcry and shareholder unrest, potentially resulting in more stringent regulations and loss of talent if not structured properly.
Accounting Fraud
Fraudulent accounting practices can lead to severe financial misstatements, impacting decision-making and potentially causing catastrophic financial consequences for stakeholders.
Money Laundering
Involvement in money laundering damages a corporation's reputation, can result in hefty fines, and lead to a breakdown in ethical culture within the organization.
Conflict of Interest
A conflict of interest can compromise the decision-making process, leading to decisions that may not be in the best interest of the corporation or its shareholders.
Responsible Investment
Focusing on responsible investment strategies can strengthen the company's market position and foster trust among stakeholders while contributing to a sustainable economy.
Disclosure and Transparency
Proper disclosure practices are key to market integrity and investor trust, which are crucial for the long-term success of any corporation.
Corporate Governance
Strong corporate governance ensures accountability and fairness in a corporation’s processes and can greatly increase investor confidence in the company.
Bribery and Corruption
Engagement in bribery and corruption can lead to legal action, loss of business, and a damaged reputation, which can adversely affect long-term profitability.
Fair Dealing
Promoting fair dealing with clients, competitors, and employees builds a reputation for integrity and can lead to more sustainable business relationships.
Privacy and Data Security
Ensuring the privacy and security of customer and company data is crucial in maintaining trust, and failing to do so can lead to legal penalties and loss of business.
Risk Management and Ethics
Ethical risk management promotes the identification and mitigation of risks without compromising ethical standards, essential for maintaining corporate integrity.
Product Responsibility
Corporate responsibility for products extends to ethical considerations, ensuring safety and honesty in product representation, which is vital for consumer trust.
Supply Chain Ethics
Ethical supply chain management ensures fair labor practices and sustainability, which can improve brand image and prevent boycotts or negative press.
Environmental, Social, and Governance (ESG) Criteria
Adherence to ESG criteria can enhance investment attractiveness and fulfill corporate responsibility obligations, leading to potential long-term value creation.
Market Manipulation
Market manipulation distorts the fairness of financial markets and can result in significant legal consequences and loss of confidence in the system.
Whistleblower Protections
Protecting whistleblowers who report unethical practices encourages transparency and can help uncover and prevent financial misconduct.
Lobbying and Political Contributions
Ethically managing lobbying efforts and political contributions is necessary to avoid conflicts of interest and maintain a level playing field in policy influence.
Financial Regulation Compliance
Compliance with financial regulations is essential for legal operations and helps in maintaining the enterprise's license to operate in financial markets.
Ethical Decision Making
Fostering an environment where ethical decision making is the norm helps in building a sustainable business and maintaining a positive organizational culture.
© Hypatia.Tech. 2024 All rights reserved.