logo

Introduction to Ethics Assignment

   

Added on  2021-06-14

6 Pages1853 Words45 Views
Environmental Science
 | 
 | 
 | 
Running Header: Ethics EthicsAuthors Name: Authors ID:
Introduction to Ethics Assignment_1

EthicsIntroductionEthics are the standards or the code of conduct that provides guides individual to take wrongor right decisions right actions or activities. This term can also be considered as thefundamentals or the principles of decent human conduct (Bowie, 2017). Ethics for anempirical part in the routine activities and professional life of an individual and that willenable them to find out a clear difference between right and wrong things. Ethical finance will aid the business organization, employees and the shareholders to makeappropriate decisions and choices regarding the financial institutions which the business dealswith. We can use ethical finance for most of our business dealings, including insurance, bankaccounts, investments, mortgages, and savings. Ethical finance is a way of making theenvironmental and social commitment comes in light. It can be effective to attractinvestment, boosting the reputation with the customers and improving the chances when weare selling to large firms or public sector companies (Chell, Spence, Perrini and Harris,2016). Ethical practice means to focus on the negative or positive ethical issues and decidingbetween them. A negative ethical promise means that the product is of no harm to theenvironment or the society (Davies, 2016). Like for example, in an ethical investmentportfolio would not include any shares of gambling or pornography that causes pollution inthe society. Positive ethical promise includes the money which is used actively for thebetterment of the society and the environment. For example, some insurance policies donatetheir money to the charities when you sign up for them. The following are the key negativeethical issues that include: Child labor, Alcohol, Testing on animals, Tobacco, Forestryabuse, Ozone depletion, Polluters of air, water and land, Human rights issues, Nuclear power,Oil and motor industries. There is a positive side of the ethical issues and that includesEducation, Disaster relief, Public transport, Carbon-neutral firms, Energy efficiency,Fairtrade of organic food, Organic farming, and Renewable energy sources, Plant welfare,Recycling. Levels of ethical responsibility available:After analyzing the issues, there are various degrees of ethical responsibility that are requiredto be chosen. In general, ethical investments and pensions are often ranked by the level ofresponsibility with it. Ethical financial products, like investments are also socially responsibleinvestment. They are ranked from ‘light green’ to ‘dark green’ by their environmental andsocial values (DesJardins and McCall, 2014). The light green funds are generally reflecting
Introduction to Ethics Assignment_2

Ethicstrends of the conventional investment market. They will invest in the corporations in the USand Europe which includes the chemical and oil firms, but will neglect firms which impactthe environment and the arms trade. The medium green funds have tougher criteria. Forexample, they will invest in small firms but may not involve in banks or pharmaceuticals.The funds also invest in the developed world. The dark green funds have a strict screeningprocess to cut out the sectors of the industry like the oil and the gas and have in smaller firms.There are engagement firms which are used for investing in the firms which haveenvironmental policies like environmental management systems or sustainable developmentpolicies. And if you choose to invest in the FTSE 100 companies which has been designed tomeasure the performance globally with responsibility standards. You might want to considerlinking the ethical financial products to the business nature. For example, if a business isselling wooden furniture you might want to get a company some pension scheme to invest forreforestation. An appropriate ethical finance product can increase the environment profile.Some of the ethical financial products include: Credit cards, Building society accounts,Commercial mortgages, Bank accounts, Commercial insurance (Hoffman, Frederick andSchwartz, 2014). In addition to the financial products the specialist religious products to reflect social andenvironmental concerns, many building societies give products based on the religious belief.Like for example, the Islamic products of banking have complied with the sharia law. TheIslamic mortgage does not levy any interest. And all the sharia law are for the permissiblecompanies. Currently, several UK banks are offering the sharia-compliant mortgages.Cooperatives are the leaders when it comes to the community investment. But the primequestion is why ethical finance means so much. It could cover every channel as to where yourmoney is going and which includes the pensions and the ethical funds. According to the UKsustainable investment and the finance association, 34% of the asset managers see for thesocially responsible investments and indicators all around the environment and governance.The types of institutions which provide ethical finance: Ethical banks: It is bank concerned with the environmental and social impacts of the loans.Customers can look out for the services in another commercial bank. It is important not toconfuse the commercial banks with the ethical banks which offer sustainable products. Thecommercial banks are not ethical only.
Introduction to Ethics Assignment_3

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Effect of Green Finance on Cost Reduction
|13
|2946
|141

Management and Business Context | Assignment
|6
|1298
|492

Differences between Corporate Social Responsibility and Corporate Financial Performance
|5
|759
|497

PDF- Corporate Social Responsibility
|10
|2608
|124

Why Sustainable Hospitals? - Importance, Issues and Solutions
|10
|624
|104

Westpac Business Ethics and Sustainability
|4
|602
|27