What Are The Ethical Aspects Of Strategic Financial Management?

• Act with honesty and integrity.
• Avoid conflicts of interest in professional relationships. …
• Provide people with accurate, objective, understandable information. …
• Comply with all rules and regulations governing your position and your company.

What do ethics and ethical behavior have to do with finance?

High ethical standards are

critical to maintaining the public’s trust in financial markets

and in the investment profession. … A strong ethics-based culture that helps people engage in and promote ethical behaviour will foster trust, lead to robust global capital markets, and ultimately benefit society.

What are some ethical issues a financial manager could face?

Integrity. Financial managers should strive for

unimpeachable integrity

. Customers, shareholders and employees should be able to trust a financial manager’s words. Managers should not allow prejudice, bias and conflicts of interest to influence their actions.

What are the elements of strategic financial management?

• Corporate Structures.
• Agreements.
• Accurate Profit and Loss Budgets.
• Accurate Cash Flow.
• Budgeting.
• A consolidated, formalised financial strategic plan is imperative. That plan will protect your personal assets and improve your ability to access profits from the business.

What are financial ethics?

Ethics in Finance

talks about financial behavior or activities that are ethically right or wrong

. … It is generally used for describing finance which takes into account the ethical channelization of financial returns along with ESG (environmental, social, and governance) factors.

Why do we need ethics in finance?

High ethical standards are

critical to maintaining the public’s trust in financial markets

and in the investment profession. … A strong ethics-based culture that helps people engage in and promote ethical behaviour will foster trust, lead to robust global capital markets, and ultimately benefit society.

What is the role of ethics in finance?

The role of ethics in financial management is

to balance, protect and preserve stakeholders’ interests

. Eli Lilly and Company, for example, says its code of ethics in finance covers obligations to management, fellow employees, business partners, the public and shareholders.

Why is ethics important in financial controllership?

In order to remain credible,

a controller must consistently behave in an ethical manner in both private and professional life

. A personal lapse may call the integrity of the financial results into question and shake public confidence in the company.

What are the ethical issues in finance?

• Financial Reporting and Analysis: Faking the Numbers. The most common ethical concern within reporting and analysis is “faking the numbers“. …
• Asset Misappropriation. …
• Disclosure Concerns. …
• Executive Focusing. …
• No Direct Chain of Command. …
• The Overview.

What can be done to improve ethics in finance?

1. Develop a code, and make ethical performance a strategic priority. …
2. Set the tone from the top. …
3. Engage, communicate and train your staff. …
4. Provide support routes for staff. …
5. Measure effectiveness of your ethics programme.

What are the four ethical issues that you have learned?

The most widely known is the one introduced by Beauchamp and Childress. This framework approaches ethical issues in the context of four moral principles:

respect for autonomy, beneficence, nonmaleficence, and justice

(see table 1).

What are the code of ethics in financial planning?

CFP Board’s Code of Ethics and Standards of Conduct requires CFP® professionals to uphold the principles of

integrity, objectivity, competence, fairness and confidentiality

. They make a commitment to put their clients’ interests first at all times when providing financial advice.

What are the consequences of unethical financial behavior?

Once accountants have been proven to commit unethical accounting practices, they usually receive punishment. This punishment can result in substantial financial costs,

long prison time

, or other legal penalties depending on the gravity of the crime.

What is the importance of strategic financial management?

Importance of Strategic Financial Management

Strategic financial management not only

assists in setting company targets but also creates a platform for planning and governing plans to tackle challenges along the way

. It also involves laying out steps to drive the business towards its objectives.

What are the objectives of strategic financial management?

Strategic financial management is about

creating profit for the business and ensuring an acceptable return on investment (ROI)

. Financial management is accomplished through business financial plans, setting up financial controls, and financial decision making.

What are the steps of strategic management?

1. Strategic Objectives and Analysis. …
2. Strategic Formulation. …
3. Strategic Implementation. …
4. Strategic Evaluation and Control.