Would you entrust your money to someone you thought was unethical? Would you risk heavy fines and possible jail time for skimming funds from a client? People who work in finance are placed in a fiduciary position of trust; first, by their employers, if they're not self-employed, but more importantly, by members of the general public, over whose assets they are given control. Their daily business is directly working with other people's money, or doing other things that affect the public's investment decisions, and if they are unethical people, their clients, and the public, are at high risk for being cheated. Finance workers are entitled to reasonable fees for their services, but they are not entitled to engage in investment activity solely to generate more commissions for themselves, or engage in any other self-dealing while they are doing their jobs on behalf of their clients. And they have to exercise reasonable care when doing their jobs. Given the many scandals of recent years, many companies have done their best to publicize their codes of ethics, and to acknowledge their responsibility to the public. These firms know that public confidence in their finance people matters a great deal, and unethical behavior (or even the perception of such behavior)on the part of a firm means that people will stay away from that firm, and they may stay away from all the others as well. Here is an example of a firm's publication of its code of ethics: http://www.altruistfa.com/codeofethics.htm If your work in finance requires a license, such as a Series 7 or CPA license, you will find that you will be tested on professional ethics. Once you're licensed, you will be expected to abide by those rules. And God help you if, once you get your license, you are caught violating the rules (people get caught because smart customers complain). You could lose your license. Ethical lapses took down a major public accounting firm (Arthur Andersen). If those lapses are even perceived as widespread, that perception can potentially destroy an entire industry. That is why ethics are not merely relevant. On the contrary, they're vital to the existence of the industry. They're not optional.
John Dobson has written: 'Finance ethics' -- subject(s): Business ethics, Finance, Moral and ethical aspects, Moral and ethical aspects of Finance
The washing of hands
different between legal and ethics
Ethics are considered the moral standards by which people judge behavior. Ethical behavior is behavior that conforms to those accepted standards of social or professional behavior. Ethics often expressed by what is commonly considered the "golden rule": Do unto others what you would have them do unto you.
Finance managers may not follow a company's Code of Ethics and place the company at risk. Things such as manipulating business numbers isn't ethical.
The psyche of the person affects ethical behavior. Depending on how the person was raised their idea of ethical behavior could be different from the norm. It really just depends on what types of ethics you are talking about.
Ethics are a belief system whereas laws are written rules that support accepted ethical behavior.
A lot of time in finance there may be opportunities where you may have ways to take 'shortcuts' in order to make more money or get ahead. Knowing the ethics allows you to decide whether these 'shortcuts' are legitimate or legal so that the decisions you make does not end up hurting your career.
The role of ethics in development is that it gives a child the ability to judge the difference between ethical and unethical behavior.
Lead by example. Teach someone good ethics by practicing them yourself.
Code of ethics