Ethics

• Ethics basically are moral principles that governs an individual's behaviour.

• The word Ethics stem from the greek word ethike which attribute to a social environment referred to a social environment referred to as ethos or social millieu, or we can say the general word Ethics means what is right to do and what is wrong to do.

• ethics is also described as moral philosophy.

Fincance

Finance is a field that is concerned with the allocation of assets and liabilities over space and time, often under conditions of risk or uncertainty. Finance can also be defined as the art of money management.

• Participants in the market aim to price assets based on their risk level, fundamental value, and their expected rate of return. Finance can be split into three sub categories: Public finance, Corporate finance, Personal Finance.
• Public finance is the study of the role of the government in the economy. It is the branch of economics which assesses the government revenue and government expenditure of the public authorities and the adjustment of one or the other to achieve desirable effects and avoid undesirable ones.
• Corporate finance consists of the financial activities related to running a corporation, usually with a division or department set up to oversee the financial activities.Personal finance is the financial management which an individual or a family unit performs to budget, save, and spend monetary resources over time, taking into account various financial risks and future life events.

Ethical issues in finance

Ethical issues of finance are involved in the managerial activities at financial institutions i.e. BANK.They are required to mark the highest ethical standards because of the internal and external stakeholders are completely dependent on the transparency of the financial status of the organisation.The financial document helps to make decision in an organisation are transparency, integrity, accuracy and time period.

Accuracy

A company’s financial manager ensures that all financial publications accurately and fairly reflect the financial condition of the company. Accounting errors and financial fraud, such as what was seen in the cases of Enron and WorldCom, damage the interests of shareholders, employees and affect confidence in the financial system. Some organizations document ethics guidelines specifically for financial managers. For example, the ethics code of the United States Postal Service requires senior financial managers to maintain accurate records and books, maintain internal controls and prepare financial documents in accordance with generally accepted accounting principles.

Transparency

Financial documents reflect a company's performance relative to its peers, and its internal strengths and weaknesses. Regulatory agencies require publicly traded companies to submit periodic financial statements and make full disclosures of material information. A change in the senior executive ranks, buyout offers, loss or win of a major contract and new product launches are examples of material information. Transparency also means explaining financial information clearly, especially for those who aren't familiar with the company’s operations. Financial managers should not hide, obscure or otherwise render relevant financial information impossible for ordinary shareholders to understand.

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. Managers should disclose real or apparent conflicts of interest, such as an investment position in a stock or an ownership interest in one of the bidding companies for a procurement contract. The structure of certain stock-based incentive compensation schemes could also result in ethical issues. 

Unethical issues in finance

• Unethical Behaviour is a concept that lies outside the boundaries of what is morally right or proper for a person.

Some of the unethical behaviours in finance are as follows:-

1. Deliberate abnormal delays in payments to (a) Vendors, (b) Dealers commissions and promotion costs.
2. Delays in paying wages, interest to financiers, incentive, bonus to employees.
3. Holding up bills of vendors on silly reasons and ultimately buying from others to avoid payment to earlier vendors.
4. Not prompt in statutory payments of  PF, Sales Tax and Excise Duties.
5. Quick release of payments to known or adjustment parties and delaying payment to others.
6. Taking private finance only from those who are ready to do personal favor's to the finance department head.