An Analysis of Business Ethics: Woodward Financials Ltd Report

This report delves into the crucial aspects of business ethics, using Woodward Financials Ltd as a focal point. It meticulously examines ethical issues encountered in financial operations, analyzing their implications for the business and its stakeholders. The report identifies key areas where businesses, particularly in the financial sector, need to improve, and explores the social implications of ethical conduct. It emphasizes the critical need for ethical behavior in all company operations, highlighting its positive impact on the organization's reputation, customer loyalty, and long-term sustainability. The study further investigates the social implications and ethical concerns within the community related to the company's practices, offering a comprehensive understanding of the importance of ethical considerations in the financial industry. The report covers topics such as self-interest, moral vs. legal behaviors, professional duties, and the impact of customer demands on ethical practices.

UNDERSTANDING
BUSINESS ETHICS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK1.............................................................................................................................................1
1) Ethical issues considered in operations..............................................................................1
2) Implications for the business and its stakeholders.............................................................2
3) Areas business need to serve and to improve and social implications of business ethics. 4
4) Need to behave ethically by company in its operations.....................................................5
5) Impact of ethical behaviour upon organisation..................................................................6
TASK2.............................................................................................................................................7
Social implications and ethical concern of community..........................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business ethics are the aspect that shows the moral values and practices that has to be
considered by the people in the society as well as in an organisation. At present time wrong
things are adapted very quickly but to choose a right path it take long way. This will help in
attaining success for a very short time period, as for long term perspective survival is not
possible for the company. Basically it is a code of conduct that defines what is right and what is
not. Ethics in business will help in studying the policies and legals aspect that are carried out in
the company, and helps in knowing that whether firm is practising the things in right manner
with considering society's welfare also (Audi, 2012).
In the present assignment, company that has been chosen for study is Woodward
Financials Ltd - Independent Financial Advisers. This is the finance advisor company that is very
actively carrying out the operations and functions of providing financial aid to the clients. Many
more services are provided by it as the tax planning, investments in global market and making
portfolios. The purpose of the study is to understand the need of ethics in a company and adverse
effect if not performed.
TASK1
1) Ethical issues considered in operations.
Ethics is the choice that shows what is right and what is wrong. It is very essential aspect
at the present time to take in consideration by the organisation to carry out the works in most
effective and ethical manner. To survival in market this is very essential for the firm to practice
the work in most appropriate manner. Business ethics will allow a company to perform the
activities in such a way that will satisfy the needs and wants of customers and this will also help
clients to rely and prefer the company (Bageac, Furrer and Reynaud, 2011). Moral issues in the
money related administrations industry influence everybody, in light of the fact that regardless of
the possibility that you don't work in the field, you're a customer of the administrations.
Following are some of the ethical issues faced by financial advisor company-
 Self interest lead into selfishness- Many times in a financial assisting company the
interest for serving the people many situation leads to a state where the main motto of
working will change to a selfishness. Here the person will act and perform their duty to
earn instead of providing effective services to the clients. It has become very difficult to
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be ethical as such negative things come across one's path, this is one of the major ethical
issue that arise and then it ultimately lead to the circumstance where illegal practise are
start operating and the firm will then become a culprit in the eyes of society. This is just
because of the diversion of mind of people from right to wrong and a big problem will be
faced by the company ( Bazerman and Gino, 2012).
 Moral behaviour are linked with legal behaviours- In Woodward Financials Ltd many
times the situation takes place where the moral obligations and duties will become a legal
aspects. These two are very different things they must not be interlinked with each other.
Legal factors are the laws and rules which is mandatory and has to be followed by each
and every person in an organisation if not then strict actions and taken against them.
Whereas the moral behaviours of the ethical aspect are person's opinion and choices
whether to adapt and follow it or not. Following moral behaviour will create a very
positive position of firm in market and if not a negative impression will be displayed.
 Professional duty creates conflict with firm's demands- Several times in fault the reward
provided to the person become an unethical aspect as because the one who is very much
self interested he will only perform the act which is very essential for him and by which
he will be getting benefits. This situation will create a state of unethical aspect where the
company has adapted a path which is ethically not right and is not suitable for the
company to survive in market for long time period (Drover, Franczak and Beltramini,
2012).
 Many individual responsibilities wither by customers demand- There are situation where
the people are stepping into unethical practises just due to the influence of clients. Many
times the customers are forcing the financial advisor to plan the tax cutting in such a
manner that no problem get arise to the customers for this bribes are offered this will
affect the thoughts of employees are practise wrong activities that will lead to the
spoilage of company's brand image.
2) Implications for the business and its stakeholders.
In a business stakeholders plays a very vital role and is contributing a lot in the success
and development of the company. It is very essential for the organisation to take in consideration
about the stakeholders as because they will guide the management to perform the work in most
effective and appropriate (Fassin, Van Rossem and Buelens, 2011). There are different types of
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stakeholders internal and external, they both are very important part in the company and has to
be give priority to them. Due to unethical practices company may face many problems in
carrying out operations and activities along with that customers will also get affected by the
immoral actions done by the firm. There are several consequences of this as because this will
influence the entire work of the company and the position will not be sustained by Woodward
Financials Ltd.
There will be chances where the organisation will not be able to sustain in market for
long time period. Many time there will be both the situation positive and negative for the
customers as because in case Woodward Financials Ltd is doing unethical practices due to the
commissions and other such things then customers will be getting a lot of benefits as because
they will get effective and quicker services and will be able to get the required thing in the
manner they want just by offering some more money to the company (Floyd and et al, 2013). As
discussed many time the self interest will reach to the stage where the person will become greedy
and selfish.
Government of the nation is also getting affected by the wrong practices that is been
perform by the company. This is because the government is whole soul responsible for the
business to be introduce in country. If any wrong thing will be done by the firm then government
will also be blamed and question will get arise upon them as if that haven't they examined every
thing that company will be performing as an action. This will spoil and damage the reputation
and goodwill of government as well.
Employees being stakeholder of the firm will also has its impact they career may get
influence by this very badly as because they will also be counted under the unethical practices
and all will define them as the people who were the part of wrong and immoral acts in the
company. With these practices the employees will get affected very badly. Due to the spoiled
image company will be earning less and employees will not be getting the amount and pay the
way they requires (Giacalone and Promislo, 2013).
People of the society will boycott to prefer the services of Woodward Financials Ltd as
because they found that company is practising unethical things then this will break the trust of
public and not one will be preferring to use the financial services that is been offered by
company.
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3) Areas business need to serve and to improve and social implications of business ethics.
As Woodward Financials Ltd is a financial advisor company in UK is has become very
essential for it to expand the area as because it is limiting the growth opportunities along with
that there are various external factors that are affecting the business as well. It is advised to
company that it can expand the business and can be able to out efforts in the CSR activities so
that unethical practices can be removed and healthy operations can be performed. This will help
firm to improve its present state and can be able to create a good image in market and in minds
of the general public (Hoffman, Frederick and Schwartz, 2014). This will help in improving its
approach to the social and ethical trading in the market.
Business activities are very directly linked with the society, it is very essential for the
organisation to take proper care of the society as because there are situation where the people
does not support the company to carry out their activities as because they are not practising the
work in an ethical manner. Below are some of the social implications in the different areas of
activities-
Ethics in finance
 Bribery- This is basically a corruption method where the people of the company takes so
that they can be able to get benefits out of it. This is a type of defilement and is the
utilization of monetary muscle to increase uncalled for advantage over others. This
incorporates paying entireties of cash to win contracts or taking 'back handers' which
includes designating contracts unjustifiably. This defilement is deceptive and has a wide
range of social ramifications. These incorporate a misfortune of trust in the stock
exchange as speculators won't purchase partakes in the organization (Lin and et. al,
2011).
 Pay executive- This is also said as the fat cat salaries where the executives are paid more
salaries and incentives also bonuses where the other deserving employees after so much
hard work is not paid that much amount so this is another unethical practices that is been
performed in the organisation. It will affect the morale of workforce as well.
 Lobbying- This is a very unethical aspect which is very critical for the entire nation as
because these are practices where the government of the nation is also contribute. Here
the company will offer handsome amount to the company so that government may
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introduce such laws and plans that are in the favour of the firm and this will affect the
other organisation.
 Insider trading- This is the method where the internal informations are leaked without
any permission in stock exchanges this will affect the business activities for long term
survival.
All these are the unethical practices that need to be avoided and should consider the ethical path
so that they can be able to get sustainability and competitive advantages in the market (Ma and
et. al, 2012).
4) Need to behave ethically by company in its operations.
Ethical consideration is must at present time period. It has become the major motive and
the base upon which a company is judged in a market. Hence it has to be focused and planned
accordingly. It is very important in a company and has to be very strictly adapted by it as
because this will help in attaining the long term survival and loyalty by the customers. Below are
the importance of ethics in organisation-
 It is very helpful in attracting the customers to use and avail the service of company.
 It will motivate employees to work more effectively and efficiently.
 It will attract other investors to expand the business in other areas and level.
Basic five reason are below that states why a company need to be socially liable and ethically
responsible-
 At present time the employees are also willing to have an ethical environment around.
They wish to put their efforts where the ethical consideration is very high because this is
a sign of a good company and this will show that firm is very effectively carrying out the
activities and functions concerning customers needs and wants (Melé, 2012). This will
motivate manpower to work appropriately.
 Customers are very intellectual they are very rational as well they know what is right and
what is not. Therefore it is very essential for a company to make them satisfy. They want
to have better services and client adopt such firm who are not doing any wrong acts.
 This will help in adapting competitive advantages and long term survival.
5) Impact of ethical behaviour upon organisation.
In this modern time the business is facing various challenges whether it is in illegal or
unethical practice of enterprise, various organisation had been came ahead with the codes which
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are of the ethics so that they can be able to deal with the ethical problems. Ethics is known as the
set of the moral which is very helpful for each and every thing, even to the employees which are
working internally and externally. The ethical behaviour is the characteristic which is done by
honesty, equity in the interpersonal, etc. It can seem difficult for Woodward Financials Ltd to
understand the essentialness of ethical behaviour in the enterprise, and the lack of the ethics
would lead to the wealth issue to the business (Rutherford and et. al, 2012).
It is essential to have ethical behaviour or environment in the organisation or that will
effect the business in various ways like legal issues as there are various rules and policies are
their which is been made by the government which helps and tell them how to operate and run
the business in lawful manner. And if Woodward Financials Ltd will not follow this then that
might affect their business and they have to pay fines and penalties, that can affect the
shareholders and the suppliers of their company.
Employees relation will affect because of the lack of ethical behaviour in the organisation
as sometimes some of the employees tries to move ahead and wants to achieve more money and
good positions and because of their activities it become difficult for them as well as to the
company also, and those employees which follow the ethical behaviour and rules and policies get
demotivated with this activity, and this increase the chances of decreasing in the performance.
Lack of ethical behaviour in the organisation can less the respect of the managers among
employees, to make a business grow in a proper manner it requires to have a good leader to
manage it, and if once a leader will loss his respect among their employees then that might affect
the employees relation so ethical behaviour affects the employees relation. If there is a lack of
ethics in their environment then they can loss the credibility, as because if this will get public
that Woodward Financials Ltd do not follow ethical behaviour in their organisation, then it will
have impact on their credibility very badly and this will affect on customers as well (Schaltegger,
Lüdeke-Freund and Hansen, 2012). Ethical environment is very essential in the Woodward
Financials Ltd otherwise it affect its stakeholders externally and internally.
TASK2
Social implications and ethical concern of community.
The impact of financial advisories in the society is always benefiting since it helps the
society to plan for their consumption in the long run. It can even make a person wealthier if the
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advisor gives some really good investment suggestions. Woodward financials is helping the
economy to grow through providing knowledge regarding savings and investment. It helps the
clients in their asset allocation processes and also weighting process as its a part of their financial
process.
It is also impacting the society by helping their clients in managing the investment risk
present by providing good solutions about risk management. Since it is known for its skills in tax
planning cases, therefore it helps in providing tax efficiency and effectiveness to their clients and
also managing their portfolio effectively. Since everyone in the society is not much qualified
about investments and tax planning so financial advisories like Woodward Financials are helping
people in the same (Smith and Dubbink, 2011).
The ethical values followed by the organisation are as follows:-
 Since the company's core value is “client trust and performance” so in order to imply it in
real, the company has to have ethical values in its structure.
 The company always keeps the first meeting at their cost and not the customers which
implies that the company wants to build a relationship with the customers so that the
customer visits again (Weiss, 2014).
 It maintains honesty with their clients by telling them that they may get less amount back
than invested since market fluctuations are uncertain.
 The company maintains its professionalism which is highly required in this field.
 Since every client is equal for the company, so fairness or unbiased nature is required
while giving advises.
There are many type of responsibilities which a company have towards its community in
which it operates. Woodward financial services limited have a major concern in regards to
society which have to be followed as ethical codes for the operations of the business. The
business is dealing in providing financial assistance which have to be proper and very much
much supporting in regards to the person or any other organisation which is seeking the advice
(Stanwick and Stanwick, 2013). The company must not do any kind of fraud in terms of data
misuse of the people which have been given to it in order to have a report on financial status by
its customers. Also the company must not leak any type of information regarding financial
assistance of the client with whim it is dealing. The company can provide some free assistance to
the people in order to do business in a well budgeted manner.
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The company can guide its advise seekers in a manner that they also contributes in doing
CSR activities in their business so as to improve their tax paying capacity and recognition in the
country if they are very well established and stable in terms of money. The company itself can
utilise the fund and financial resources in a manner that it contributes the society and its people.
Or it may raise the rates of employment or any type of contribution to the people who seek jobs
and are not getting it. Major contribution can be in the direction of utilising the resources in a
proper manner so that there is not wastage (Wang and Hsieh, 2012). Sustainable development is
one another aspect of CSR activity which company can focus on while assisting its client as well
as operating its own business. This will further help in contribution for the development and
growth of the company with as success in operations of the company itself as well.
CONCLUSION
In this assignment, the study has been carried out regarding the ethical aspect that are
very necessary to be adapted by a company that can be very effective and necessary for the firm.
Woodward Financials Ltd is providing the financial advisory services to the client where it has
been found that there are some unethical practices that were performed. The consequences has
been understood in this report along with that the importance and need to adapt the ethical aspect
has also been concluded to understand the effectiveness and need of it.
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REFERENCES
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Online
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