Ethics of Business Case Study 2022

Running head: ETHICS OF BUSINESS
Ethics of Business
Name of the Student
Name of the University
Author Note

1ETHICS OF BUSINESS
Question 1
A. The FASEA Code of Ethics
Financial advisers have the importance responsibility of providing vital guidance
to the common public as to how to manage their funds in a better manner (Richards
and Morton 2019). The aim of such provision of financial advices is to ensure a
decent standard of living for the concerned people so that they do not face any sort of
financial crisis when they are need of some emergency funds (Brown 2017).
In the case study mentioned, it can be observed that Sam is a para planner and
therefore, does not have much experience of being a financial advisor. She got the job
on the basis of her close association with one of the financial advisors in the firm and
because she went to a reputed business school. Sam’s mother, Carly, has more than
twenty years of experience of being a financial advisor and therefore, knows how the
entire process works.
However, in the context of Sam, it can be seen that there exists several important
barriers to ethical decision making which may influence the direction undertaken by
Sam. Sam has been given the important responsibility of providing financial advice to
the granddaughter of two wealthy people, Kelly King. Since Sam believes that Kelly
belongs to a wealthy family, she is under the assumption that Kelly would already be
aware about the requirements of managing funds. This is a gross violation of business
ethics because it depends upon the financial advisor to proceed with their task in a
transparent manner as possible, which Sam is ignoring under the prevailing
circumstance (Brown 2018).
The FASEA Code of Ethics refers to the Financial Adviser Standards and Ethics
Authority. Compliance to such ethical code of conduct has been made mandatory on

2ETHICS OF BUSINESS
the part of the government of Australia starting from 2020 (Hoyle 2018). The main
objective of the FASEA Code of Ethics is to ensure that the clients of the different
businesses are well protected from the self-serving motives of such corporate
enterprises themselves.
With regard to the issue of compliance with the relevant standards of the FASEA
Code of Ethics, it can be seen that Sam was in direct violation of the Standard 2 of the
FASEA Code of Ethics. According to Standard 2, a financial advisor is required to
work towards the protection of the integrity of their client and to ensure that the best
interest of the client is achieved for (De Gori 2017). However, in the case study, it can
be observed that Sam was under the assumption that Kelly would not require any
insurance for her funds as she belonged to a rich and wealthy family. This meant that
in the event that Kelly does face a severe financial crisis, Sam would not be able to
protect her. Instead, Sam believed that Kelly’s family would provide her the
protection that is needed, which is a gross violation of the integrity of her client.
Sam also failed to comply with the relevant value of the FASEA Code of Ethics.
The FASEA Code of Ethics was instituted for the purposes of protecting the clients
from the misappropriation of their funds (Marshan 2017). However, in the context of
Kelly it can be seen that Sam believed that the wealthy resources of the family would
provide the necessary guarantee of her funds. Sam failed to realize that being a
financial advisor, it was her responsibility to protect the monetary resources of her
client. The financial back ground of the client does not have any bearings on the issue
of how Kelly could be best advised to manage her own funds. In this regard, it can be
concluded that the relevant values of the FASEA Code of Ethics were not adhered to
as observed in the case study (Sharpe 2018).
B. Recommendation given to Sam

3ETHICS OF BUSINESS
The main job responsibility of Sam is to give financial advices to her clients in a
transparent manner as possible. As a result, it is required that she should be keeping
an open mind and listen to the needs and desires of her clients before attempting to
provide any financial advices to them (Santacruz 2018). In this regard, after the
analysis of the case study, several recommendations can be provided to Sam before
she meets with her client, Kelly King.
First, it is recommended that Sam should not make any assumptions based on the
financial status of her client. She should be giving her client all the necessary
information, irrespective of the fact that her client is aware of them or not (Schwartz
2017). This ensures that Sam fulfills her responsibility of being honest with her client.
Second, Sam should first hear the opinions from her client as to what she wants to
do regarding her own monetary resources (Enderle 2015). It is only after that that Sam
should provide financial advices to Kelly depending on her direction and flow of
interest.
Question 2
A. Potential barriers to ethical decision making
The Youth Allowance benefits are given to the teenagers so that they would be
able to assert their financial Independence from their parents. Often times it is
observed that the younger generation is more inclined to use their parents’ monetary
resources rather than finding a prospective job opportunity for their own. The Youth
Allowance fund has been established in order to ensure that such a scenario does not
occur. The teenagers are given the motivation to become more responsible for their
own activities and to find the direction of formulating their own path towards success
(Adler et al. 2015). In this regard, the Youth Allowance find is meant to give them the