Ethical dilemma in the Financial Industry
Colorado Technical University Online
November 22, 2010
Ethical Dilemma in the Financial Industry
Ethical issues in the financial service industry affect a lot of people. This is because this industry is very large, which includes banks, pension funds, mortgage lenders, and agents that provide people with their finances. Since it is so large and so many people need financial aid, unethical behaviors will happen. There are several ethical issues that need to be addressed. One manager one, is financial places making a profit for themselves, or only has interest in themselves not customers. Ethical dilemmas will be teleological or deontological. I will explain if this dilemma is unethical or not. Unethical dilemmas can be fixed.
Self-interest can lead into greed and selfishness. This self-interest will cost an expense to another person. This self-interest is in making a profit for the company and more money for themselves. Greed can lead into a short-term or a long-term process to make the company money. Some companies will move around assets, like recording earnings now and expenses later. This would not be by selling a product or going by what the mission of the company is. Self-interest agent would choice away to do business to give the company a higher profits and to themselves. If rewards were offered, this can lead to decisions to make the company more money and make money for themselves. If an agent was to get a high commission if they sold a higher percentage of finances to a client then a smaller percentage, the agent will sell the higher percentage one and not think about the client’s needs. Their only concern is there rewards and making more for the company. In doing this, they are encouraging behavior that is dysfunctional and not worrying about the outcome. The big ethical... [continues]
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