Ethics and professionalism in Financial Sector

Ethics and
professionalism in
Financial Sector

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
Extract meaning and intention of ethical values in financial sector. ..........................................3
Critically analyse rules and regulations structure in context of financial reporting, their
intention and their requirement...................................................................................................4
Critically reflect upon the effects of stakeholder values on financial decision-making.............5
Examine how Corporate Social Responsibility (CSR) effect financial decision making...........7
Explain how ethics and sustainability impacts financial outcomes of an organisation..............8
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Morality in the monetary field encompasses reliability, trustworthiness, solidarity, value
and decency in a wide range of monetary activities. Monetary ethics or business ethics are
actually a subset of general ethics. Highest standard are being demanded to be complied in ethics
in finance. Unethical behaviour has significant consequences for both individuals as well as
organisations. An individual can lose job and reputationand organisation can lose their
credibility, its morale and leads to decline in productivity or financial loss (McDermott, Kurucz,
and Colbert, 2018). In this following report the meaning and impacts of professional codes of
conduct have been given which elaborates the impacts of ethics on financial position and result
of an entity. It will also constitute the meaning and impacts of Corporate Social Responsibility
(CSR) on the financial decision making and financial position of the entity. At last the report the
include the effects of ethics and sustainability on the financial result of organisation.
MAIN BODY
Extract meaning and intention of ethical values in financial sector.
It is a instrument that elaborates the way in which employees are supposed to take action
in terms of their organisation. It conclude components such as beliefs of the organisation,
correctional moves or obligations. It is divided into sections and reinforced by basic standards of
integrity, objectivity, professional skills and due care, confidentiality and professional conduct. It
is designed to insure employees are acting in a way that is accepted by society and respectful of
one other. Certain industries, like banking and finance industries, have rules that monitor
business behaviour and need acts that enhance integrity. Other organisations may form a code of
ethics deliberately. Generally a code of ethics will regulate employee conduct, professional
Practice, and also the manner in which professionals address certain issues. The aim of code of
ethics is to keep an honest and impartial business environment. It is applicable on both
employees and executives. Financial professionals run business according to the highest ethical
standards and sustain the full confidence and trust of its stakeholders or consumers, the investors
in its debt securities and the public at large (Aalbers, 2020). Financial Professionals must
perform their personal and organisations relations in a way which does not lead to adverse
comments or criticism from the public or in any manner effect the reputation of organisation.
The aim of this code of ethics is to found the wrongdoer and to encourage

 honesty and ethical working
 complete, fair, correct, timely and comprehensible disclosure of financial data
 follow up with applicable laws, rules and regulations
 responsibility for adherence to this Code
Professionals of finance sector must accomplish with the essence or intention of relevant
laws, rules and regulations of the SEC, FHFA and any other governing body. Any disobedience
of this Code may be made only with the consent of Board of Directors, acting upon a suggestion
from the audit committee. Any disobedience of this code includes the Chief Executive Officer or
the Chief Financial Officer must be open within four business days to the time needed by law.
Any modification of this code must be approved by the Board of Directors and afterwards to the
time required by law, opened within four business days (Abu Bakar, Cooke, and Muenjohn,
2018). Practical, managerial or other non-substantive alterations to this Code do not necessitate
rapid disclosure. Professionals of finance sector should evade real or evident issues of interest.
In any situation in which professional finds that with an real and evident issue of interest, the
professionals must properly disclose such issues of interest to the organization.
Critically analyse rules and regulations structure in context of financial reporting, their intention
and their requirement.
It is technique that supplies important data to stated shareholders, and effectual
interactions among organisations, specifically in credit establishments, and their shareholders is
essential. Hence, the data supplied by organisations must be applicable and understandable. The
information supplied should be compared with regulations. Therefore necessities of reporting
must be framed in such a manner that they do not threaten financial stability. Regulatory
structure for assistance of financial reporting has to include current trends and rising challenges.
The ideal design provides a basis for agreeing on clear principles by arbitrarily adjusting the
relevance and nature of global monetary information, working with people and disparate
associations to bring together educated financial options (Akbari, and McClelland, 2020). The
requirement for regulation arises in order to insure that the requirements of financial statement
users are complied with a basic limited data. To insure that all the data supplies in the applicable
economic area can be compared and is stable. The crucial objective of this framework is to
provide assistance to IASB in the further development of IFRSs and in its examination of
existing IFRSs. It can also assist the preparers of financial statements in creating accounting

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