Financial ethics in Chelmsford and anywhere else in the UK are critical to the health of any business. Unfortunately, the role of ethics in business tends to be a “box checking” exercise. People talk about it, maybe even reference the concept in their annual report or the company slogan, but one could argue that many companies fail to implement this concept in a sincere and committed manner.
It would seem that it is best to address this topic head-on. Why? Because there are many examples of what happens to a company when ethics aren’t part of the decision-making process. Ethics is comprised of concepts like honesty, courage, integrity, mutual respect, service, and compassion. People who are ethical tend to create environments which are more ethical; those who are not ethical do not. Ethical decision making is the foundation of any business that management and employees alike must embrace.
With a financial manager, like many other roles within a business, ethical decision making must occur all of the time. Ethical decision making is not a part-time job; it’s a full-time effort.
Consider the difficulty of making ethical decisions in the corporate context, when there are many pressures to do just the opposite. Let’s consider the universal corporate objective of “maximizing shareholder value” as one example. Does achieving this objective imply that the manager must make decisions that exclude altruism or require that one violate principles of integrity?
You have probably met some people who do believe this, and consequently act this way in the decisions that they make. Fudging an invoice, not keeping promises, treating people without respect, these are all examples where ethics are lacking.
When you think about it for a second, though, people who tend to act in less than ethical ways typically don’t get very far. They are known for their insensitivity, or greediness, or their inability to do the right thing. When corporations exhibit cultures that embrace this type of philosophy, the results can be devastating.
Take Enron as an example. From the simple act of lying to the more technical aspect of telling shareholders that value existed where it didn’t, there are a plethora of examples.
Unfortunately for Enron’s shareholders, retirees, and innocent employees, the lack of ethical decision making undermined the company to the point of bankruptcy
And what about the financial institutions that were meant to protect the innocents? As we have since found out, the “independent” auditors weren’t truly independent at all. To many of us, this is a rather amazing case of how one of the world’s largest corporations could fall into bankruptcy and demise in a very short time. And similarly, how one of the world’s largest accounting and consulting firms, Arthur Andersen, could see its holdings diluted.
Contact Andrew Douglas Wills and Legal Services today via www.andrewdouglaswills.co.uk to see how we could help you to act in keeping financial ethics in Chelmsford and throughout Essex.
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