Ethics and Financial Services

This article discusses the ethical issues in the financial services industry and the importance of maintaining ethical boundaries. It also explores the responsibilities of financial professionals and the role of financial assistance in business and client relationships.

Running Head: Ethics and Financial Services
Ethics and Financial Services
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Author’s Note

1ETHICS AND FINANCIAL SERVICES
Ethical issues can be defined as the problem or situation that arises from the organization
or person to select between the alternatives which can be evaluated as ethical or unethical issues.
The cause of the issue arises out of the decisions taken, the current scenario and the activities that
create a conflict within the society’s morale principles (Slade and Prinsloo 2013). Te conflicts
are comprised of matters that can be legally dangerous since some of the legal issues may be
breached to a particular law.
In the first section of the question, which is comprised, of the issues that has been identified are:
In the first instance, Hamid was stressed which is not a good sign while working in an
organization as the business side because of the inflation rate gave pressure. Secondly the cost of
the state regulation fee was increasing as the years has passed by (Martin 2015). Thirdly the
customers who had registered themselves to enter in Shady Oaks was waiting to enter. The
service team on the other had delivered some sad stories for which the families was increasingly
desperate.
Thirdly the reason of issue that was recognized in the field was the rising cost of
employment. The demand of the front line staff was increasing faster than the supply which had
increased cost in the business (Johnson 2014). Fourthly, it was a case of negligence on the side
of the business firm where they had neglected the lease contracts with the financial institution.
Lastly there was a lack of efficient staff where the organization had to recruit more of employee
which would yield the efficiency in the company. There should be a strategy adopted by the
company where the cost of spending on the employee can be raised so that there is an interest on
their side as well and share their contribution towards the company. These sums up as the ethical
issues that has been recognized in the following case study (Social 2013).

2ETHICS AND FINANCIAL SERVICES
The issue is regarding the between rationality and sensibility where reliability stands for
the ability to sense or feel the sensitivity for the others whereas the term rationality depends on
the quality and the state of being rational with the agreement attracted to reasons and possessions
(Darrow et al, 2015). The discussions that have taken place in recognizing the ethical issues are
rational and are not attached to ethical reactions.
The ethical boundaries that has been recognized in this case study is related to the value,
respect, responsibility, integrity, personal behavior and morale of a person inculcated within the
system of what the employee or the employers hold. The ethics in the working environment
allows the managers and the employee to maintain a respectable barriers by respecting the work
space and the personal space of other employees (Kimball and Kim 2013). Boundaries or
barriers does not always represent a structure that is imposed on the legal and ethical issues but
are a integral part of the business-client relationship. It involves the betrayal of respect and trust
within the same sector of the business operations.
The stakeholders that has been identified working in both internal and external firm are
the employee and the owners of the company (Shildrick 2015). The decision that has been taken
by the morale stakeholder is to make the families wait for their property in Shady Oaks. The
owners had decided to raise the cost of employment as more of recruitment was required in the
company in efficient working skills. The need of efficiency gain from the staff is mandate
because of the flow of work that was required by the company. The interest of the morale agent
in the case is related to the person ability to discern from the choice of right to wrong and who
are held accountable in the case. The stakeholder wanted to raise the cost of the following

3ETHICS AND FINANCIAL SERVICES
employment without holding accountable the decisions of other employee. The action was taken
on a separate basis where the responsibility was the cause of unjustified harm. In the
organization the moral agency are those who are responsible for their own action. The competing
ethical values and principles that underlie the ethical conflict are based on the five principles that
is beneficence, fidelity, nonmaleficence, justice and autonomy. These are explained to be each of
absolute truth in them. the principles describe about the expected terms in right and correct
manner (Gómez and Muradian 2015). The identification is done on the basis of the behavior of
the individual or the employee working in the organization. the above four principle is derived
from the obligation of respect in the autonomy of the other people. It is regarded as the principle
of human dignity. Where we are not suppose to interfere with the duty of others and take
decision regarding the competent and a positive attitude that forms a responsibility.
In the third part of the case analysis the ethical course of action that can be taken is will be
discussed in this section later but there to know that the concept of ethical decision making refers
to the process of evaluating and choosing the alternatives in a manner that is consistent with the
ethical principles. The process that the decision undergoes is making the ethical decision, which
requires the desire to do the right thing considering the cost factor (Jordan et al. 2014).
The steps that can be taken to choose the alternative course of action and the consequences that
are attached are :
 The first step that it can take is to recognize the problem and see the areas of the
problems carefully so that later in the course of action difficulties does not arise.

4ETHICS AND FINANCIAL SERVICES
 The story or the case should be straight forward and while recognizing the problem the
relevant data needs to be collected. In this case the families can be given prior notive as
they had to wait for the property.
 Being the owner of the property it is the authority and the responsibility of the manager to
regulate the problem and the issues which can be related to the regulatory requirement.
 The higher authority should regulate the issues and specify the rules as per the code of
conduct which is related to the property ethics. The rules should be determined keeping
in mind the ethics which can be recognized as a problem and can inculcate a proper
development in the course of action.
 A list of possible action needs to be developed that would be comprised of positive and
negative consequences.
 To identify the action what can be taken control of what cannot be taken off. With regard
to the action of recruiting the best efficient workers.
The course of action that can be discussed in this section with giving stress on the factor
where the employee has to recruit proper and qualified employee. With the refection of the
principles that has been discussed in the section of the discussion is related to the action that is to
be emphasized. The action that is taken to take care of the recruitment of the employees who
carries a qualified position in the finance management. The leadership is an important function
that needs to be carried out carefully in the organization. it is depended on the leader how he or
she delegates the duties and the responsibility and segregate it within the employees (Cooper,
Dacin and Palmer 2013). Hence it is the role of the leader to manage the task and the employee
on the same scale by designing the functioning of the system. In this case, the organization needs

5ETHICS AND FINANCIAL SERVICES
the recruitment of efficient employee who are qualified to take up the task in the finance
department.
The importance of recruitment of an efficient staff can result to a help in the organization to
deliver the task in a more or less scale. The scale of production will depend the employee and in
some cases the efficiency is based on the following of the principles that is addressed in the
second section of the case study. Such candidates would be known for its ability to optimize the
resources. It also depends on the time spend on the initial work as well as in the resources that
are targeted to be met. The efficiency is based on the principle from the second section of the
course (Amusan and Oyediran 2016).
The principle states on the respect of autonomy because it is the obligation that deals with
respect of the autonomy with the other people. Building a god relation with the other employees
is mandate in this field because one can help the other in case of emergency. This can facilitate
the cause making decision concerned with the lives of other people. In a way of granting jobs to
the worthy people will justify the causes of the principles stated. This type of dignity can also be
referred to as human dignity. It gives a vibe of negative duty that does not interfere to take
decision in competent adults and a positive duty to empower the responsibility. The positive
steps prevents from harm and helps to adopt them in corollary principles that takes place in direct
conflict respecting the autonomy of the other candidates (Ghazzawi and Accoumeh 2014).
The responsibilities of a financial professional that can be taken will facilitate the advisor and
help the client plan for the course of short and long term financial goals that includes the buying
of home, education of the children and the retirement plan. This comprises of the inclusion of

6ETHICS AND FINANCIAL SERVICES
investment, tax and insurance. The financial planner is regarded as the professional who assist in
the organization to handle the finances and the project that results in saving and investment that
can be seen with the well prepared plan for the retirement. They even assist to take decision
while making money that can help to reach the financial goals as efficient as possible. The role
and responsibility of the financial assistor in the company leads to create strategies with the
purpose of eliminating the financial risk and assist to built wealth over the long term. The
planner can provide with the option of game plan that puts the employee back to its own track in
order to achieve the financial goals (Ramo et al., 2014). The financial advisor simply assists the
client and the employee in all type of financial planning. It is the duty and responsibility of the
advisor to create strategies for eliminating the risk that is associated with the finances. The game
plan may assist you to track the achievement with the planned financial goals.
In case of the employee the financial assistance can be provided the insight of how they can
save more and built wealth. This is done by the assistance of the manager which facilitates the
construction of a portfolio in investment that are well suited to the attitudes of the client. Some of
the business clients are willing to take up the risk as it is prospected with a greater reward in
more completing and the prospect of the potential customers in losing money (Jessiman 2013).
On the other hand, in the case that is given in the discussion portion determines the client who
are prolonged to more risk that has an adverse effect on the lower-risk portfolio which is
potential to low returns.
Hence it can be concluded from the analysis of the case study is that the financial assistance s
provided for the benefit of the business and the client. In case of determining the risk, the attitude
may be dealt as the difficult portion of the risk that is associated to greater number of factors.
Thus, the financial advisor may ask to think about the age of the client and understand the

7ETHICS AND FINANCIAL SERVICES
income, marital status, indebtedness, or saving in order to achieve the trust of the client. As the
evolution of the technology the progress is being towards the increasing number of companies.
The process of collection and interpretation of information can automate such program. It is a
financial advisor who by the action of time states the fraction taking into consideration the time
and cost.

8ETHICS AND FINANCIAL SERVICES
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