Ethical Challenges in the Finance Industry Assignment

Ethical Challenges in the Finance Industry Question and Answer Assignment

Questions:

Identify one ethical issue/problem that has arisen in the period 2017-2018 in the finance

industry. This issue can come from anywhere in the world. You need to briefly

– Explain the issue

– Explain why it is an ethical issue

– Make recommendations to resolve the issueResources

Note. This is not to replace your own research and readings!

1. Some questions I may want to consider when first considering whether a business

(or finance) issue has ethical content (This is known as “moral awareness” or “moral

imagination”)

– Is there a conflict of values or interests?

– Could someone be harmed as a result of this action?

– How would I feel if my family/friends found out about my decision?

– How would I feel if my decision were on the TV news?

2. Some background readings related to ethics / ethical issues

– Banking and finance oath: https://www.thebfo.org/home- From Santa Clara University: https://www.scu.edu/ethics/focus-areas/businessethics/resources/ethical-issues-in-the-financial-services-industry/

– “Fiduciary Duty in the 21st Century”

http://www.unepfi.org/fileadmin/documents/fiduciary_duty_21st_century.pdf

– CFA Standards of professional conduct (BKM p.84)

3. Some examples of ethical issues in finance

– Timeline: banking scandals in Australia since 2009:

https://www.theguardian.com/australia-news/ng-interactive/2016/apr/29/timelinebankingscandals-in-australia-since-2009

– SAC Capital Advisors Case Tests an Ethical Dilemma (this case involves a portfolio

manager) http://www.nytimes.com/2013/06/01/business/sac-case-tests-aclassicdilemma.html?pagewanted=all&_r=1

– Conflict of Interest: The Common Thread Underlying Ethical Lapses (one of the

industries examined is investment banking)

http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2351636

– Woman Who Couldn’t Be Intimidated by Citigroup Wins $31 Million.

http://www.bloomberg.com/news/articles/2012-05-31/woman-who-couldn-t-beintimidatedby-citigroup-wins-31-million

– Through the Eyes of a Whistle-Blower: How Sherry Hunt Spoke Up About Citibank’s

Mortgage Fraud (this is a Harvard Business Case Study, you don’t have the full case

but the summary gives you a taste)

https://cb.hbsp.harvard.edu/cbmp/product/KEL852-PDF-ENG