FNSINC401: Applying Ethics, Legislation & Sustainability in Finance

This report provides a detailed analysis of professional practices within the financial services industry. It identifies the roles and responsibilities of various sectors, including accounting, bookkeeping, insurance, lending, and banking. The report examines the relationship between bookkeeping and accounting, the impact of interest rates and dollar value on the banking sector, and the application of the triple bottom line approach. It also appraises work team obligations, the role of technology in ensuring legislated requirements, and sustainability legislation. The report further includes a practical insurance quote comparison for a hairdressing salon, recommending the most suitable option. This comprehensive analysis aims to provide a thorough understanding of the ethical, legal, and sustainable practices essential in the financial services industry.

Running head: INFORMATION TECHNOLOGY ETHICS
INFORMATION TECHNOLOGY ETHICS
Name of the Student
Name of the University
Author’s note

1INFORMATION TECHNOLOGY ETHICS
Table of Contents
Task 1.....................................................................................................................................................2
Part 1: Brief description of roles and responsibilities of the five financial sector..............................2
Part 2: Relations of Bookkeeping-Accounting and benefits:..............................................................3
Part 3: Impact of Interest and dollar value on the banking sector:....................................................4
Part 4: Triple bottom line approach in financial sector:.....................................................................5
Part 5: Appraisal of obligation:..........................................................................................................5
Part 6: Role of technology in ensuring legislated requirements:.......................................................6
Task 2:...................................................................................................................................................6
Part 1:................................................................................................................................................6
1. Sustainability legislation, regulations and codes of practice......................................................6
2. Two examples of policies and procedures and ethical behaviours............................................7
3. Security practices and rationale.................................................................................................7
4. Accounting system and database..............................................................................................8
5. Principles, practices and available tools and techniques of sustainability management...........8
6. Legislation and statutory requirements and industry codes of practice....................................8
7. Impact of economic and political impact:................................................................................10
8. Two examples of professional practice applications................................................................10
Part 2: Insurance quote for the Hairdressing Salon:........................................................................11
Comparison of three product offerings:......................................................................................11
Insurance that is recommended:.................................................................................................11
Reference:...........................................................................................................................................13

2INFORMATION TECHNOLOGY ETHICS
Task 1
Part 1: Brief description of roles and responsibilities of the five financial sector
Accounting:
Accounting in simplest terms means the recording of the financial statement
including the financial transaction. It keeps tracks of the details like profit and loss,
cost and earnings, liabilities and assets. This information not only help to understand
the financial strength of the concerned organization or the individual, it helps to take
decision based on the proper information and statistics and plan accordingly for the
improvement of the financial position1.
Due to the ability of accounting to help in making the decision, in modern day
the accounting is often related to financial management.
Bookkeeping:
Bookkeeping is also an important area in the financial sector. It helps to
maintain the account receivables and account payables. It also plays an important
role to prepare and update statement including the balance sheet and income
statement.
It is an effective way to keep detailed record of the day to day financial
transaction that helps a lot in the accounting process. Hence it can be said that
accounting and bookkeeping is closely related.
Insurance:
1 William Robert Scott, the complete financial guide with theory and application (Pearson, 2014).

3INFORMATION TECHNOLOGY ETHICS
Insurance plays an important role in the financial sector as well. The does
have a significant impact on the economy. It mobilizes the domestic saving and also
arrange for capital that is required for the productive investment.
It helps in mitigating the financial loss that the organization is likely to incur
into the financial performance. It also helps in promoting trade and commercial
activities that ensures economic growth as well as economic prosperity.
Lending services:
Lending in the simplest terms means is to give someone money or property in
a temporary basis. The amount that has been given needs to be return by the person
who taking the money. In financial sectors the lending service includes different type
of commercial loans for different purpose.
The loans are given with a certain amount of interest rate specified when the
loans are taken. It is one of the important service that is offered and it is also an
important source through which bank make money with the interest collected for a
particular loan.
Banking:
The banking is an important sector in the financial services. Commercial
banks provides financial service that is aimed toward reducing the cost with effective
allocation of money from the savers to the borrowers.
Banking builds an economic system that is not only effective but beneficial for
all. Hence banking is important for making the overall economy more stabilized and
efficient.
Part 2: Relations of Bookkeeping-Accounting and benefits:
Interaction of the two sector:
Book keeping and accounting is closely related to each other. The accounting
is the process of analysing the financial statements. This statement includes the
cost, investment, return and other financial related activities. Based on this analysis
the financial statement is produced. The financial statement is necessary to take
financial related decision like where the company has invested more and how the
investment has been made. This information is necessary to identify proper strategy

4INFORMATION TECHNOLOGY ETHICS
to mitigate the issues like low investment in return, financial loss. Hence it implies
that the accounting helps a lot in taking financial decision and management.
Benefits of the interaction
Although the accounting is necessary for making financial related decision
and financial management, it is only possible if the data based on which the decision
are made is accurate and reliable. Without correct and proper data it is not possible
to make the effective decision.
Bookkeeping ensures that information is collected on a regular basis and it is
collected correctly the process includes the complete details of the each and every
financial details. Thus bookkeeping ensures that proper information is always
available whenever it is required.
Part 3: Impact of Interest and dollar value on the banking sector:
Interest rate:
The interest rate plays an important role in the banking sector. It is the amount
that banks provide against the saving account. It also decides the money that the
banks is supposed to collect against the loan provided. If the interest goes up or
down for a long term it will have diverse effect on the economy and its stability. The
reserve bank of Australia has kept the interest rates at 1.5%, despite the hike of
interest rate in other major countries having higher GDP including America. Due to
the low level of interest rate it will support the growth of Australian economy including
the banking sector as well.
Dollar value:
Although the RBA has kept the interest on a record law, the value in the
Australia dollar (AUD) is declining thus keeping it at a risk of higher inflation. Hence a
tight monitoring is being performed on the value of the AUD, before the market
stabilizes significantly. The falling value in the AUD will have a significant impact on
the long term debts fund and the impact is also likely to be seen on the net asset
value (NAV). Due to this the return rate will also increase. A decline in the AUD value
is likely to create pressure due to inflation which will involve making the import
costlier than before. However if current situation is analysed, the situation is much
stable due to close monitoring on the AUD value and also the interest rate has been

5INFORMATION TECHNOLOGY ETHICS
kept at record lower value before the situation is completely stabilized and bring to
reliable position.
Part 4: Triple bottom line approach in financial sector:
The triple bottom line approach is a brilliant concept that redefines the way the
organization defines its service and scope and the way it operates. The triple bottom
line approach consists of three major factors which includes financial, economic and
social aspects. The triple bottom line approach puts the financial terms at the lowest
level and giving major preference to the social and moral aspects. Although the
inclusion of the principle to the banking sector has been a major issue as there has
been always concern how social and environmental value will be preferred instead of
the financial term. However these values need to be incorporated for the sustainable
practises.

6INFORMATION TECHNOLOGY ETHICS
For ensuring the social value, organization needs to create effective
organizational policies and standards. For example if bank relaxes the standards for
the lending service and instead tries to increase the amount of money, it will
definitely improve the economy or financial performance for the bank. However, if the
bank faces economic crisis it will have to put larger charge for the mortgage which
will create a social crisis among the people. People will go through family violence
due to economic pressure and tension between couple and children will also prevail.
People will work overtime for income to repay money and that too will create stress
within family. Hence banking before creating the standards for money lending have
to take this into account and plan according to that. The mortgage rate should be set
such that the organization don’t have to force higher rate on the customers even
when there is an economic crisis and proper backup plan is there if these happens at
all.
In order to ensure environmental value the bank must invest in projects that
are environment friendly and in some cases the funding should be provided at a
subsidised rate if possible. This might limit the profit to some extent, but it will
definitely boost the environmental value that goes beyond the financial investment
and profit.
Part 5: Appraisal of obligation:
In order to make an appraisal of work team obligation, a proper code of
conduct needs to be developed that address the applicable rules and regulations in
that particular sector as identified in part 1 to 42. The actions of the employee will be
assessed on based on that. Proper training and seminar will also be arranged for the
employee for personal, moral and ethical as well as professional development so
that it is easy for them to follow and apply the code of practise in the workplace.
Training is necessary for the employees working in the financial sector to
make them aware of the legal and ethical practises. Employee training and
development plays an important role in associating the goals of the employee to the
goals of the organization. The training programs that are common in the financial
sector trains the employees in topics like sales training, budget management, anti-
money laundering and cash flow management. This training not only helps the
2 Lynn A Scout , A team production theory of corporate law (Willey publication, 2017)

7INFORMATION TECHNOLOGY ETHICS
employees to sharpen their skills for professional development, it also helps them to
understand relevant rules and regulations while performing those tasks in the
professional job sectors. Thus it is an effective way for the organization too to deal
with the obligations while implementing the rules and regulations for the sectors as
identified in part 1 to 4.
In order to carryout financial activities corporations and organizations need to
comply with the licensing requirements as applicable in the particular sector. Most of
the laws relevant in the sector makes it mandatory that organization need to have
corresponding license before it associates words like banking, insurance and
national with the organization. The process of acquiring the license is a complex and
lengthy process, though it depends on the type of license for which the organization
apply for. However without the license no organization is entitled to execute its
business process.
Part 6: Role of technology in ensuring legislated requirements:
To provide safety and keep the customer information secured and for that
technologies like encryption, digital verification, and digital signature needs to be
incorporated3. Public key infrastructure is another important way to ensure the safety
of the information. As per the legislations requirements, banks are required to keep
the information safe and secure. The technology as enhances the information
security, also helps to meet the legislated requirements.
Task 2:
Part 1:
1. Sustainability legislation, regulations and codes of practice
The concept of sustainability means to preserve the present need while
ensuring that the future development is capable for meeting the demands of
the next generations. Sustainability is not all about preserving the
environment and the biodiversity, it is also about ensuring that the human life
3 H Clemens, Technology in Banking (Europa Publications, 2015).

8INFORMATION TECHNOLOGY ETHICS
is free of poverty and basic financial demands are met properly. Bank has an
important role to play in this direction as a lot of people depends on banks for
financial activities. Hence, sustainability legislation, regulations will ensure
that bank progress towards this direction and create a sustainable impact on
the life and society while keeping the financial basics intact.
The code of conduct ensures that the organizations address the rules
and regulations applicable in that particular industries. In order to create
consumer value as well as reputation for the organization it is important to
have proper code of conduct which will ensure that organization is following
the moral and ethical standards while conducting the business activities.
2. Two examples of policies and procedures and ethical behaviours
The bank policies and procedures are implanted to make the financial
activities complied with the applicable rules and regulation
Two example in this regard are:
E-banking:
If the customer opt for the e-banking facility, the bank makes it sure
that the online transaction is safe and secure and customer is always keep up
to date regarding the financial statement including the credit and debit
Financial assistance:
Bank as part of their extended banking services also provides financial
assistance to the customer who want it. However the customer has to provide
the complete details including document proof to make it sure that the process
is transparent and legal.
As part of the ethical behaviour two of the most important examples are:
 Bank never shares the personal details including account details with
the others except the one nominated by the customer
 Bank never charges customer with manipulating information and
details. Any activities regarding the transaction is kept safe and
personal

9INFORMATION TECHNOLOGY ETHICS
3. Security practices and rationale
The bank database and the server is always kept up to date so that
information related to the customer is kept safe. If the data is not kept safe
and the server is hacked somehow it will expose a lot of information including
the personal details to the hackers. Hence the security is a major requirement
for the banking sector. As part of the security measures bank provides SMS
and email alerts regarding the transaction
4. Accounting system and database.
The accounting system or commonly known as the account information
system is the system that is responsible for the collection, storage and
processing of the financial data which helps in auditing, financial accounting &
reporting.
Database is the technology of storing the customer related data
including the personal details of consumer like documents proof , digital
signature , photos , account number and several other data related to
customer and the bank itself.
5. Principles, practices and available tools and techniques of sustainability
management
In order to create a sustainable society financial service industry should
adopt precautionary approach and support actions that develops product and
services which encourage sustainable development. As part of the
sustainable practise, financial institution should promote healthy development
for capital market. Institutions are also expected to work together to improve
the techniques that enhance the ESG or the environment safety guidelines for
sustainable financial development. To provide safety and keep the customer
information secured and for that technologies like encryption, digital
verification, and digital signature needs to be incorporated. The security
providers the institute appoints should also comply with the ESG rules and
regulations. It will help the investors to make sales related decision that is not
only appropriate but sustainable too.

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6. Legislation and statutory requirements and industry codes of practice
o Consumer credit code
The credit score is the evaluation of the customer credit
worthiness of an individual based on which loan is provided. According
to the Fair Credit Reporting Act, the consumer is entitled to get the
credit score report free of cost. If the consumer credit score is above
the prime value which is subject to the individual organization, then the
organization needs to give the loan amount that the customer is
entitled for. However while evaluating the credit score, the source of
the credit score has to be defined to make the process authenticate.
o Privacy act
According to the international privacy act for information, every
organization who collects and store the customer information has to
provide the highest security measure for the information security. It is
the duty of the banking institute to ensure that they collects, store and
process information in such a way that security is maintained in each of
the process.
o Credit act
According to the national credit act, the consumer have to be
protected in the credit market. It is the duty of the bank or financial
institute to makes the credit and banking service more accessible to
others
o Financial transaction reports act
According to the financial transaction report act, if there is any
issues related to transaction report after the tax filling it has to be
resolved at an immediate basis. The report should aim to create the
regulation for money laundering and other financial related transaction.
Organization failing to do so will have to come under the legal dispute
o Corporations act (including accounting standards)

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The corporation act sets the accounting standards for the
financial institutions. It is aimed towards preparing standard that
prepares and present the financial information in a transparent and
effective way. The act enforces the organization to comply with the
financial position, financial performance and cash flow in the fairest
way possible.
o Financial services reform act (FSRA)
The financial service reform act set a common legislation term
for various financial service and products. It makes the ethical
investment mandatory for the organization and give value to the
interest of people more than the unit holder.
7. Impact of economic and political impact:
According to the RBA, due to the low interest rate and steady growth in
economy banks will not face the inflation in the financial in return and
investment. Even the inflation is accounted in the investment to return, the
process will be gradual and it will make it is easy for the banking sector to
account with that.
The political situation is currently very turbulent and it is likely to impact
the economic and financial sector too. It will particularly impact the invest
rate and the return on the investment. The invest rate will likely to be
declined as the uncertainty in the political sector is increasing
8. Two examples of professional practice applications
Two examples of the professional practice application specific to the
workplace in the banking sector are:
Data collection:
The amount of information that is applicable for a particular service for
instance account opening, only that amount of information is collected. No
sensitive information if not required will be collected form the customer.
Data retention:

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Data will be retained in the database as long as it is necessary. The
application for which the data is collected no longer needs the data, then it
has should not be retained in the database. It not only makes the chances of
data hack less, it also makes the professional practices fair and transparent.
Part 2: Insurance quote for the Hairdressing Salon:
Comparison of three product offerings:
Type of
Insurance
Average
Annual
Premium
Average
Deductible
What it
cover
Providers
Commercial
General Liability
$400 to $500 $1,000 Claims by
third party
such as
property
damage,
medical
payments,
and injuries
regarding
personal
advertising.
For example
If a customer
faces injuries
inside the
saloon the
medical bill
will be
covered by
the insurance
The Hartford
Professional
Liability
$800 to $1,200 based on
coverage
Damages
due to
Next Insurance

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Insurance amount .ho
wever it
varies
mistakes,
negligence or
non-fulfilment
of contractual
obligations. If
due to
mishandling
of the
employees
the business
faces any
loss or
damage
when the
customer
sues the
company, the
financial
damage that
the company
is likely to
encounter will
be
considered in
the insurance
term.
Business
Interruption
$300 to 750 Based on
revenue
Loss of
income due
to interruption
in business. It
might be
happen that if
the business
is interrupted
Next Insurance

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due to natural
calamities like
rain, storm,
the financial
loss of the
company will
be
considered in
the insurance
term.
Commercial
Property
Insurance
$300 to $700 Varies
based on
property
value
Assets that
belongs to
the business
such as
building,
equipment
and
inventory.
Any kind of
damage that
is related to
the above
mentioned
assets is paid
by the
insurance
term as
agreed
Allstate
Workers
Compensation
1% of
compensation
per employee
None Work-related
injuries,
medical bills,
wage
replacement
and more for
Allstate

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employees. It
is standard
practise for
the
organization
to provide
compensatio
n to the
workers for
helping them
meet the
costs
mentioned
above. This
insurance
cover these
expenses for
the
organization
with effective
package that
ensures
maximum
profit not only
for the
employees
but for the
organization
as well.
Hence it is a
popular
insurance
plan
companies

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apply for
Insurance that is recommended:
Insurance type:
Professional Liability Insurance
What it will cover:
Any damage to the business that is due to negligence or mistake. While
covering the insurance term, it does not matter whose fault it was, customer or the
employers. It will basically pay for the lawsuit if customer sue the organization, even
if it is the fault of the customer
What it will not cover:
 Commercial General Liability like property damage , medical payments
 Personal and the advertising damage
 Business Interruption Insurance like loss in revenue including the damage due
to natural calamities like storm
Estimate cost:
Average annual premium of $800 to $1,200 while the average deductible
based on the revenue of the organization. Hence the insurance will be an
appropriate for the Hairdresser Salon.

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Reference:
Scott, William Robert, Financial Accounting Theory (Pearson, 2014)
Clemens, J. H, Technology in Banking (Europa Publications, 2015)
Stout, Lynn A, A team production theory (Willey Publication, 2017)