Question

Leverage your knowledge of ethics to discuss five (5) reasons companies in the financial service industry should embrace ethics in management.

Answer 1

Answer:-

The companies in the financial service industry should embrace ethics in management for a number reasons including;

? Avoiding unnecessary risks: - Ethics related news of a company influences the share price of a company because it affects the confidence level that investors hold to the company.

?Validating return on investment :- The ethical business practices of financial service companies can help them to avoid the legal problems as well as the negative financial results which arise upon the discovery of the unethical behavior. Ethical practices in addition help these companies to offer consistent ROI.

?Earning from the green environmental practices :- As individuals are becoming more aware of the impact of their activities on the environment, they are likely to engage with those companies whose activities do not cause much pollution to the environment. Thus, when a company embraces ethics in its management, it will attract more customers.

?Improving the morale of employees:-When a financial company`s management embraces ethics, it improve the morale of the employees as they feel respected, treated with dignity and fairness.

? Avoiding lawsuits and poor public image: - When a financial company`s management embraces ethics, it stands to engage only in ethical practices while avoiding unethical practices that may attract lawsuits and poor company reputation that can have considerable impacts on its revenues.