Ethical And Unethical Issues On Finance

WHAT IS BUSINESS?

The term business has been defined differently by different scholars time to time. Business is an economic activity which is conducted on the regular basis to earn profit by sales and purchase of goods and services.

WHAT IS ETHICS ?

The word Ethics stem from the greek word ethike which attribute to a social environment referred to a social environment referred to as ethos or social millieu, or we can say the general word Ethics means what is right to do and what is wrong to do."For Norms For Moral Values.

 WHAT IS BUSINESS ETHICS ?

Business ethics is the behavior that how an organisation deal with the world. The Ethics of the business can be diverse .They are applied not only on how the business interact with the world but also to interact with an individual .( for example :- customer).If an organisation want to run their  in the competitive market then it is necessary to follow the ethics in business for moral values, norms, and as well as for the society.It would be beneficial for an organisation to follow the business ethics.It is the responsibility of the organisation to maintain the ethical status..

 FINANCE

Finance is a field that is concerned with the allocation of assets and liabilities over space and time, often under conditions of risk or uncertainty. Finance can also be defined as the art of money management. Participants in the market aim to price assets based on their risk level, fundamental value, and their expected rate of return. Finance can be split into three sub-categories: public finance, corporate finance and personal finance. 

ETHICAL ISSUES OF FINANCE

Ethical issues of finance are involved in the managerial activities at financial institutions i.e. BANK.They are required to mark the highest ethical standards because of the internal and external stakeholders are completely dependent on the transparency of the financial status of the organisation.The financial document helps to make decision in an organisation are transparency, integrity, accuracy and time period.

UNETHICAL ISSUES OF FINANCE

The unethical practices in accounting are more in proprietary, partnership and private limited companies. It is at lower levels in public limited companies and MNC's.

a. Deliberate abnormal delays in payments to (a) Vendors, (b) Dealers commissions and promotion costs.

b. Delays in paying wages, interest to financiers, incentive, bonus to employees.

c. Holding up bills of vendors on silly reasons and ultimately buying from others to avoid payment to earlier vendors.

d. Not prompt in statutory payments of  PF, Sales Tax and Excise Duties.

i. Quick release of payments to known or adjustment parties and delaying payment to others.

j. Taking private finance only from those who are ready to do personal favor's to the finance department head