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Ethical Article Analysis - Essay Example

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Summary
Financial management has to do with the process of managing the financial resources, including accounting and financial reporting, budgeting, collecting accounts receivable, risk management, and insurance for a business.[business dictionary]
The ethical concerns impact…
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Ethical Article Analysis
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Ethical Article Analysis

The banks will have expectations that loans are returned in full without default. The owners of the firm will expect that some black money is not being invested in their firm; they expect of the employees that their output or productivity matches their emoluments. They may have concerns as to there should not be wastage of resources and maximum production is being ensured at minimum cost. The consumers expect that they are charged reasonable prices for goods and services and firms are not seeking exorbitant profits. Moreover, consumers’ interests are not infringed by firms’ cartels or by price discrimination. General public will expect from firms that their operations are not detrimental for their health or not generating environmental pollution. The environmentalists concerns are that firms operations are not leading to ozone-layer depletion or loss of biodiversity. Government expectations are that corporate laws are not violated and firms pay taxes without evasion. The employees concerns are that they are paid fully for the services they render and there is no discrimination in salaries and promotions on the basis of sex differences or on any other ground. When so many different things from different quarters enter into the scene the financial decision will naturally be affected.
In the business organization referred to in the article under consideration ethical concerns are categorized on the basis of the various publics with which the financial manager has to deal; these publics include the board of directors, the medical staff, vendors, regulatory agencies, employees, and consumers.
A board of directors’ member interests may be in conflict with that of the organization due to his multiple roles; the board member may also represent an organization that is in competition with the institution for certain goods or services. Ethical concerns may also come up as a result ... Read More
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