In this discussion, please reflect on yourcomprehension of financial management and knowledge gained from the mediaconcerning financial real world activities and events occurring in the US.
- Whatactions and behaviors of leaders and managers in corporations couldinfluence the market value and price of stocks?
- Inreflecting on the creation of the Sarbanes-Oxley Act to increaseaccountability through new mandatory standards, what are some possibleexplanations as to why unethical conduct occurs in financial management?
- Whatare some activities corporations can do to decrease overall unethicalpractices and promote good business ethics in the organization?
Student1 Response to Discussion Question:
Hey Professor and Class,
One of the biggest actions of leaders & managers is within the companiesfinance. Making poor decisions reflects on the future growth of the company.Choosing high interest loans can result in a decrease in revenue. It would behard to stay ahead and increase revenue if the money made is being applied to anegative balance. Price of stock can go both ways. If the stock has constantfalls and limited rise, that can send off a negative view for investors.
A possible explanation as to why unethical conduct occurs would be theconvenience. It’s not right but you have companies that will overwork employeeswith minimum pay. Their goal is to increase productivity and revenue but atothers expense. I honestly can’t think of any other reasons. Maybe, the cost istoo much for the company to handle and they are in over their heads.
Some activities corporations can do is taking time to create a practical plan.I think for smaller businesses starting off but have a gigantic budget thatincludes impossible tasks is not logical. To operate big, you must be open to abigger budget and include possible failures. Within corporations, setting workstandards and ensuring they are followed. Respecting employees needs andproviding a safe environment. Managerial positions should set standards thatthey also follow.
SHRM (April, 2014) Creating an Ethical Workplace Retrievedfrom www.shrm.org
Strain, M (2016) Retrieved from http://smallbusiness.chron.com/
StuedentNumber 2 Response to Discussion Question:
Hello Class and Professor,
What actions and behaviors of leadersand managers in corporations could influence the market value and price ofstocks?
Stocksprices are influenced by many factors such as interest rates, inflation andpolitical environment. Influence based on the actions and behaviors ofleaders and managers are those of corporate earnings, changes in management,news about competitors and whether they are taking business away from thecompany, new products and services and lawsuits. As stated in anarticle on Max’s Investment World “Bottom line: try to avoid changing yourinvestment behavior based on general factors affecting stocks as a whole andconcentrate on the specific companies you own in your portfolio. Followfundamental news about whether they are coming out with new products andservices, innovating, keeping costs down, winning against competitors, findingtalented employees, etc.”.
In reflecting on thecreation of the Sarbanes-Oxley Act to increase accountability through newmandatory standards, what are some possible explanations as to why unethicalconduct occurs in financial management?
Ethical issues in the financial servicesindustry affect everyone, because even if you do not work in the field, you area consumer of the services. Some possible explanations as to whyunethical conduct occurs in financial management are self-interest, whichsometimes morphs into greed and selfishness, which is unchecked self-interestat the expense of someone else. This greed becomes a kind of accumulationfever. Some people suffer from stunted moral development, the failure tobe taught, the failure to look beyond one’s own perspective, and the lack ofproper mentoring, some people equate moral behavior with legal behavior,disregarding the fact that even though an action may not be illegal, it stillmay not be moral. Also, professional duty can conflict with companydemands; for example, a faulty reward system can induce unethical behavior andindividual responsibility can wither under the demands of the client
What aresome activities corporations can do to decrease overall unethical practices andpromote good business ethics in the organization?
Some activities corporations can do to decreaseoverall unethical practices and promote good business ethics in theorganizations are to create a code of conduct; a written code of conductprovides employees and managers with an overview of the type of conduct andbehaviors the company expects. It outlines what behaviors are unacceptable andwhat measures are taken if an employee violates the code of conduct. Theycan lead by example. Employees look to business owners and managers fordirection on how they should conduct themselves. As a business owner, makeethics-based decisions and monitor the individuals you put into leadershiproles at your company for the same values. Reinforce consequences; businessowners must hold their employees accountable when they act unethically. Start by informing new employees of the rules during their orientationsessions. If an employee acts unethically, refer to the code of conduct andtake the necessary measures to warn or terminate. Show EmployeesAppreciation; loyal employees feel that a company values the hard work they putinto accomplishing tasks on a daily basis. A loyal employee is less likely toact unethically. Show appreciation to the employees for work well done on aregular basis to encourage loyalty. Welcome an Ethics Speaker; schedule anethics trainer to visit your work site to discuss ethical behavior and explainwhy it is important in organizations, regardless of the size or industry.Ethics trainers use role-playing, motivational speaking, videos and handouts toillustrate the importance of ethics in the workplace. Create checks andbalances; Rather than putting related responsibilities in the hands of oneemployee, create a system of checks and balances to minimize the opportunitiesfor unethical behavior and Hire for values; when business owners hireemployees, many seek to bring on individuals who have the education andexperience that prove they are skilled workers, capable of handling the tasksat hand. Employers who want to prevent unethical behavior also look atcandidates’ values to ensure they mesh with the company’s culture.