Ethics and Professionalism in Financial Sector

This report discusses the context and purpose of professional codes in the financial sector, laws and regulatory frameworks in relation to financial reporting, the impact of stakeholder values on financial decision-making, how Corporate Social Responsibility (CSR) influences financial decision making, and how ethics and sustainability affect financial results of a company.

Ethics and professionalism in
Financial Sector

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................3
Outline the context and purpose of professional codes in financial sector.................................3
Critically examine the laws and regulatory frameworks in relation to financial reporting, their
purpose and why they are required.............................................................................................4
Critically reflect upon the impact of stakeholder values on financial decision-making...........4
Evaluate how Corporate Social Responsibility (CSR) influence financial decision making.....5
Assess how ethics and sustainability affects financial results of a company..............................6
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Financial sector are those sectors that deals over different aspects which makes financial
process of an organization performed in more organized manner. Such sectors handles all
elements and factors related over making financial resources available to an organization. This
sectors is considered as backbone of an organization which makes budget formed in more
organized way by keeping in mind over all progress of an organization. Further the sector is
focused upon developing guidance that makes professional skills with ethics consideration
maintained within an organization. In this sector an organization is able to analyse all kinds of
aspects which contributes towards financial growth of an organization. Scope of these sectors is
wider as they affects organizations needs of various resources. Nature is dynamic as working of
organization is been analysed in proper manner. The organization that has been taken within the
report is Daloit which is an accounting firm and established in the year1845. Headquarters of an
organization is in London, UK. Further file explains about professional conduct, corporate social
responsibility and laws related to it.
TASK
Outline the context and purpose of professional codes in financial sector.
Professional code are those kinds of codes which is helpful in making developing of
financial sector in more affective way. Such code of conduct is been followed in relation over
improving basic elements involve in developing finances. Under this code professionalism is
been developed within an organization. These codes makes all kinds of guidance been provided
regarding business environment within an organization. Also such code makes finances sector
improved through making employee learn about working process of an organization. In these
ethical code of conduct can be used which makes guidelines created over making various aspects
that leads upon creating discipline with order(Oboh, Ajibolade and Otusanya, 2020).
Ethical code of conduct is been applied for making professionalism accomplished
through making standards with discipline achieved. Regarding an accountancy firm like Daloit
ethics is been used over making framework formed leading towards achieving goals and
objectives of professionalism. In financial sector various reports is been formed which requires
format to be applied through ethical code of conduct these formates will be used in more perfect
manner which eventually increases quality of work within an accountancy firm. Ethical code of

conduct makes proper guidance provided over making employee learn about professionalism
through which projected will be completed within time limit specified for it(Nwagwu, 2020).
Critically examine the laws and regulatory frameworks in relation to financial reporting, their
purpose and why they are required.
The laws that is been used in relation over those regulatory framework which makes financial
report developed in more organized manner is based upon accounting standards that makes
Revenue Recognition Principle, historical Cost Principle, matching Principle,full Disclosure
Principle and Objectivity Principle. All these principles makes various aspects related over
business organization developed in more effective way which leads upon maintaining proper
accounts throughput these principles various aspects is been covered which helps in making
accounts developed in more organized way. Also accounting code of conduct is been followed
which makes development of accounts possible in more effective way.
Critically reflect upon the impact of stakeholder values on financial decision-making.
Stakeholders these are most important aspect existing within an organization that makes
all processes functions in more effective way. These individual are those parties making interest
developed within an organization that leads over making growth of an organization possible in
more effective manner. Also they contributes towards making discipline and order maintained
within various departments of an organization. They contributes towards making an accountancy
firm attain sustainability as per the conditions of market. Stakeholders deals with both internal
and external factors that is been affected business within its operations and performances. In an
accountancy firm like Daloit stakeholders acts as important element in making sure that
decisions making mechanism is been enhanced(Mia and Lee, 2017). Also in such firm
stakeholders contributes over improving working environment, creating stimulation and makes
rewards system better which creates best outcomes attained within decision making mechanism.
Further discussion has been done regarding affect of stakeholders in decision making for an firm
like Daloit is explained as follows:
 Employees: They are considered as backbone of an organization due to there influence
upon working mechanism of an organization. Employees helps in smoothing the process
by making task accomplished in more affective way. In relation to an accountancy firm
like Daloit employees contribute towards decision making through marking out problems
that is been faced by them. Through including them in decision making mechanism

innovative ideas over completing task in more effective way can be achieved and
accountancy firm understand about needs which makes satisfaction created for
employees.
 Investors: Such stakeholders acts as important aspect of an organization through making
funds arranged for it. In an organization stakeholders provide capital that leads upon
attaining sustainability regarding finances. It impacts decision making of an accountancy
firm like Daloit through making management develop strategies in order to attract more
and more investors which makes capital arranged in affective way(Kaur, 2017).
 Suppliers: These are those stakeholders which provide resources regarding raw materials
needed for accomplishing task or completing particular project. Suppliers is one of the
most part needed by an organization in improving its supply chain management system.
Decision making process of an accountancy firm like Daloit is been impacted from
suppliers in a way that supplier centric strategies is required to be developed for
enhancing quality of raw materials and get raw materials purchased at better costs.
Through such strategies raw materials will be arranged on time for an particular project.
 Customers: They are considered as one of the most important stakeholders which makes
organizations attain place within market. Accountancy firm like Daloit is required to
develop decision in relation over attracting new customers which helps in forming strong
customer base within an organization.
Evaluate how Corporate Social Responsibility (CSR) influence financial decision making.
Corporate social responsibility (CSR) is that kind of process which helps in developing
organization about those kind of ideas that makes social welfare achieved in more effective way.
In this various kinds of social goals is been formed by an organization in order to make image of
organization improved. These goals are focused upon creating charitable or activist nature
engaged that leads upon supporting of ethically oriented practices. The organization makes
concept of social responsibility enhanced which makes goodwill of an organization increased
within market(Kamarudin and Kassim, 2020).
Also such responsibility makes an organization develop various self regulation business
model that makes an organization attain social responsibility over stakeholders and public. These
practices makes corporates become more conscious about impacts that makes development of
ordinary cause within an accountancy firm like Daloit. CSR makes an accountancy firm like

Daloit helps in improving society and environment. This makes social welfare introduced in
more impactful manner. Also this makes goodwill increased with boosting moral support within
an organization which makes moral support and employees feel connected over each other that
improves sense of social responsibility within an organization and makes contribution towards
society done in more effective way. An organization firm like Daloit it is first required over
developing certain strategies and mechanism which makes corporate social responsibility
achieved in more effective way and these strategies makes goals and objectives achieved in
impactful manner. Accountancy firm like Daloit makes growth opportunity generated from view
point of social welfare within society(Guðmundsson and Kristinsson, 2019).
Then it enhances corporation like Daloit decision making by enhancing growth of its
business that made them reach to point from where they can helps society in return. It leads upon
making decision making improved through understanding about all factors related to society.
Assess how ethics and sustainability affects financial results of a company
Ethics is considered as those rules and regulations which makes discipline and order
developed within an organization through enhancing it processes taking place within an
organization. Ethics makes different process accomplished in more organized way that makes
working integrity in an organization achieved. Further these rules and regulations makes all kind
of organization achieved stability within its process through developing decision which helps in
making affective decisions taken in relation over maintaining ethical code of conduct that is been
formed by an accountancy firm like Daloit within it. In this proper framework has been
developed which makes decision taken in more impactful manner. Accountancy firm like Daloit
should use ethical standards which enhances working process within accountancy firm by
making decision take over improving ethical value within working of an organization. Such
decision makes guidance developed regarding framework to be followed in an organization.
Ethical code of conduct needs improvement from time to time that makes it more strong in
nature. If ethics are not been followed then an accountancy firm like Daloit would not be able to
develop over proper mechanism in relation to monetary transactions this leads over making miss
management of finances leading towards loss to the accountancy firm(Al Frijat and Albawwat,
2019).
Sustainability is the process by which an organization is able to develop itself as per the
condition existing within market. This helps in making sure that over all progress of an

organization is been improved through covering aspects of three main pillars that are economic,
environment and social. They helps in making an accountancy firm like Daloit increase profit
and revenue. Also it improves firms financial structure with the helps of its various important
aspects that has been given as follows:
 Sustainability focuses on meeting the needs of the present without compromising the
ability of future generations to meet their needs.
 Investors can be wary of companies that commit to sustainability. Although the optics
can be beneficial to share price, investors worry about companies being transparent with
their earnings results.
 Big brands often make pledges to sustainability, but it often takes a long time to achieve
sustainability goals.
Through these aspects sustainability is been provided which makes different element
within the firm like Daloit enhanced in more effective way. It improves finances by making
profit and revenue generated in more organized way. Also it contributes towards attaining
financial stability which makes by making innovative ideas applied within usage of finances.
Then it makes concept of optimum utilization of resources developed which directly reduces
wastage of resources. This makes growth achieved by firm like Daloit(Adler and Liyanarachchi,
2020).
CONCLUSION
From the above discussion it can be concluded that financial sector is that kind of sector
which makes all progress made within finances in more effective way. Also this sector makes all
kinds of aspects covered within it that helps in making accountancy firm accomplish its goals.
Then in this sector ethics has important role to play that makes guidance and standards
developed through which professionalism is developed within working of an accountancy firm.
In this things covered is based upon various aspects of ethics with impact of stakeholders over

decision making. Further in the end corporate social responsibility and sustainability is been
explained.

REFERENCES
Books and Journals
Adler, R. and Liyanarachchi, G., 2020. Towards measuring professionalism in accounting.
Accounting & Finance, 60(3), pp.1907-1941.
Al Frijat, Y.S. and Albawwat, I.E., 2019. Values, ethics, and attitudes (IES 4) and earnings
management from the viewpoint of the financial accountants at Amman Stock
Exchange. Accounting and Management Information Systems, 18(3), pp.379-398.
Guðmundsson, B. and Kristinsson, S., 2019. Journalistic professionalism in Iceland: A
framework for analysis and an assessment. Journalism, 20(12), pp.1684-1703.
Kamarudin, A.A. and Kassim, S., 2020. An analysis of customer satisfaction on employee
professionalism: a comparison between Islamic and conventional banks in Malaysia.
Journal of Islamic Marketing.
Kaur, J., 2017. Exploring relationships among ethical climate types and organizational
commitment: A case of Indian banking sector. Journal of Indian Business Research.
Mia, M.A. and Lee, H.A., 2017. Mission drift and ethical crisis in microfinance institutions:
What matters?. Journal of cleaner production, 164, pp.102-114.
Nwagwu, I., 2020. Driving sustainable banking in Nigeria through responsible management
education: The case of lagos business school. The International Journal of Management
Education, 18(1), p.100332.
Oboh, C.S., Ajibolade, S.O. and Otusanya, O.J., 2020. Ethical decision-making among
professional accountants in Nigeria: the influence of ethical ideology, work sector, and
types of professional membership. Journal of Financial Reporting and Accounting.
Oduor, J. and Kebba, J., 2019. Financial sector regulation and governance in Africa. In
Extending financial inclusion in Africa (pp. 137-163). Academic Press.
Steinfeld, J., McCue, C. and Prier, E., 2017. Professionalism as social responsibility in
procurement and administration. European Business Review.