Seminar

SEMINAR REPORT ETHICS IN FINANCE
-1-
The world community is earnestly and eagerly seeking answers to fundamental questions relating to ethics and morality in the conduct of businesses, in the light of corporate fraud that has been taking place from time to time. All professionals play a dual role that of being the principal and an agent to their customers in discharge of their functions. Often there is conflict of interest in every aspect of professional life, which represents an ethical dilemma or dharma sankat, and they arise fundamentally due to conflicting roles played by individuals and institutions. The emphasis is how to live and deal effectively with such situations. A number of factors such as natural environment, work culture, protecting the consumers at large and issue revolving around accounting and finance principles come into consideration and therefore it is important to understand the ethical issues in business. Ethics in general is concerned with human behavior that is acceptable or "right" and that is not acceptable or "wrong" based on conventional morality. General ethical norms encompass truthfulness, honesty, integrity, respect for others, fairness, and justice. They relate to all aspects of life, including business and finance. Financial ethics is, therefore, a subset of general ethics. Ethical norms are essential for maintaining stability and harmony in social life, where people interact with one another. Recognition of others' needs and aspirations, fairness, and cooperative efforts to deal with common issues are, for example, aspects of social behavior that contribute to social stability.
PUNJABI UNIVERSITY REGIONAL CAMPUS FOR INFORMATION TECHNOLOGY &MANAGEMENT,MOHALI CREATED BY:- GIRISH KAPOOR (MBA II SEM. IV)
-2-
In the process of social evolution, we have developed not only an instinct to care for ourselves but also a conscience to care for others. There may arise situations in which the need to care for ourselves runs into conflict with the need to care for others. In such situations, ethical norms are needed to guide our behavior. As Demsey (1999) puts it: "Ethics represents the attempt to resolve the conflict between selfishness and selflessness; between our material needs and our conscience." Ethical dilemmas and ethical violations in finance can be attributed to an inconsistency in the conceptual framework of modern financialeconomic theory and the widespread use of a principal-agent model of relationship in financial transactions. The financial-economic theory that underlies the modern capitalist system is based on the rationalmaximizer paradigm, which holds that individuals are self-seeking (egoistic) and that they behave rationally when they seek to maximize their own interests. The principal-agent model of relationships refers to an arrangement whereby one party, acting as an agent for another, carries out certain functions on behalf of that other. Such arrangements are an integral part of the modern economic and financial system, and it is difficult to imagine it functioning without them. The behavioral assumption of the modern financial-economic theory runs counter to the ideas of trustworthiness, loyalty, fidelity, stewardship, and concern for others that underlie the traditional principal-agent relationship. The traditional concept of agency is based on moral values. But if human beings are rational maximizers, then agency on behalf of others in the traditional sense is impossible.
-3-
As Duska (1992) explains it: "To do something for another in a system geared to maximize self-interest is foolish. Such an answer, though, points out an inconsistency at the heart of the system, for a system that has rules requiring agents to look out for others while encouraging individuals to look out only for themselves, destroys the practice of looking out for others". The ethical dilemma presented by the problem of conflicting interests has been addressed in some areas of finance, such as corporate governance, by converting the agency relationship into a purely contractual relationship that uses a carrot-and-stick approach to ensure ethical behavior by agents. In corporate governance, the problem of conflict between
management (agent) and stockholders (principal) is described as an agency problem. Economists have developed an agency theory to deal with this problem. The agency theory assumes that both the agent and the principal are self-interested and aim to maximize their gain in their relationship. A simple example would be the case of a store manager acting as an agent for the owner of the store. The store manager wants as much pay as possible for as little work as possible, and the store owner wants as much work from the manager for as little pay as possible. This theory is value-free because it does not pass judgment on whether the maximization behavior is good or bad and is not concerned with what a just pay for the manager might be. It drops the ideas of honesty and loyalty from the agency relationship because of their incompatibility with the fundamental assumption of rational maximization.
SEMINAR REPORT ETHICS IN FINANCE describing the conflict
-4-
"The job of agency theory is to help devise techniques for inherent in the principal-agent relationship and controlling the situations so that the agent, acting from self-interest, does as little harm as possible to the principal's interest" (DeGeorge, 1992). The agency theory turns the traditional concept of agency relationship into a structured (contractual) relationship in which the principal can influence the actions of agents through incentives, motivations, and punishment schemes. The principal essentially uses monetary rewards, punishments, and the agency laws to command loyalty from the agent. Most of our needs for financial services management of retirement savings, stock and bond investing, and protection against unfore-seen events, to name a feware such that they are better entrusted to others because we have neither the ability nor the time to carry them out effectively. The corporate device of contractualization of the agency relationship is, however, too difficult to apply to the multitude of financial dealings between individuals and institutions that take place in the financial market every day. Individuals are not as well organized as stockholders, and they are often unaware of the agency problem. Lack of information also limits their ability to monitor an agent's behavior. Therefore, what we have in our complex modern economic system is a paradoxical situation: the ever-increasing need for getting things done by others on the one hand, and the description of human nature that emphasizes selfish behavior on the other. This paradoxical situation, or the inconsistency in the foundation of the modern capitalist system, can explain most of the ethical problems and declining morality in the modern business and finance arena.
-5-
Finance and Accounts is perhaps the only business function which accepts responsibility to act in public interest. Hence, a finance and accounting professionals responsibility is not restricted to satisfy the needs of any particular individual or organization. While acting in public interest, it becomes imperative that the finance and accounting professional adheres to certain basic ethics in order to achieve his objective. Until recently, various surveys conducted globally had ranked finance and accounting professionals very high in terms of professional ethics. However, various accounting scandals witnessed during the past few years have put a serious question mark on the role of the finance and accounting professional in providing the right information for decision making both within and outside their respective organisations. In companies such as Enron, WorldCom, Tyco, Global Crossing , Adelphia, Quest, Xerox and most of the late dotcoms, the accounting information used by the Finance Department was false and misappropriated. What was the role of finance and accounting professionals in all these high profile failures? Of course there were a few professionals who
-6-
were directly involved in fraudulent activities, however, the majority, at most of the times, refused to challenge what they had already known.
Enron is a classic example of such behaviour. Months before Enron

Corp declared bankruptcy, an employee of the name of Sherron Watkins sent the companys top executive (Kenneth Lay) a message which had detailed information of the accounting hoax in the form of the now famous off the book liabilities. However, instead of taking note of what was mentioned in the message, the management of the company demoted Sherron. It is well known now, that, like Sherron, hundreds of finance and accounting employees at Enron knew about the happenings but preferred to remain silent. Hence, most of them did not lie, but neither did they disclose the truth nor did they attempt to correct the misleading and confusing information. Shouldnt they have blown the whistle the way Sherron did? Was the behaviour of these employees un ethical? Cases like Enron exist in plenty e.g. World Com, Global Crossing, Xerox, Qwest and many other companies have been known to have created accounting entries with the sole purpose of making their financial statements look attractive thereby inviting further investments from unsuspecting individuals and organisations. Ethics in Finance is a ground-breaking work in the emerging field of finance ethics. The need for ethics in the personal conduct of finance professionals and the operation of financial markets and institutions can be seen in many. A broad range of practical issues in the financial services industry, investment decision making, and corporate financial management are explored, focusing on standards of fairness in market transactions and the duties of fiduciaries and agents in financial relationships. Among the topics covered are unethical sales practices, personal trading by fund managers, the socially responsible
-7-
investment movement, insider trading and program trading, the abuse of bankruptcy, and hostile takeovers. Ethics in Finance also contains a critical examination of conception of the theory of the firm in finance and the financial objective of firms. Ethics in Finance provides a rigorous analysis of ethical issues in finance that is suitable for students of finance and business ethics as well as anyone involved in financial activities.
The concept of Ethics has been derived from the Greek word Ethos. The word Ethos imbibes within itself both individual behaviour and community culture. Various individuals would be having different opinions on the same subject because of which what is perceived as right by one may be considered wrong by the other. Hence, doing what one thinks is right, may not always be the right thing to do! This is the essence of the term Ethics which may be defined as those moral principles which guide the conduct of individuals Irrespective of the differences of opinions amongst individuals, Ethical behavior implies such course of actions which are taken after giving due thought to their impact on the society and other stake holders. Hence when accounting and finance professionals at Enron did not report of the wrongs which they believed were being done at the top, their behaviour amounted to being unethical in spite of the fact that they were not directly involved in any of the fraudulent or manipulative activities. In contrast, when Cynthia Cooper, Vice President Internal Audit of World Com found wrong accounting entries resulting in inflated profits, she immediately reported the matter to the Board of Directors, this, in spite of the fact that she was reporting against seniors whom she had come to admire over the
-8-
past so many years of working together. These two examples mentioned above provide an insight into the meaning of Ethical dilemmas. Ethical Dilemmas exist when finance and accounting professionals need to choose from amongst alternatives and there are (1) significant value conflicts among differing interests (2) actual alternatives which can all be justified and (3) significant consequences to all stakeholders. Let us consider an example of finance and accounting professional who has been asked to provide a profit forecast which needs to be given to a banker for a much wanted loan to be utilized in launching a new product. The company has not been doing well for the past few years and without this loan there is a likelihood of its closing down. However, the loan can only be availed if the banker is convinced that the projected profitability shall be at least Rs 50,00,000 per annum. An optimistic projection of the profits shows that if everything goes extremely well the company may be able to make profits of Rs 50,00,000, however, a realistic assumption provides a much lower figure. In such a situation the concerned professional will need to resolve the dilemma of the type of profit forecast to be provided to the banker. In case he gives a realistic projection the company may not get the loan and perhaps may need to close down. On the other hand if he makes a optimistic projection, he may be misleading the banker. There is no right answer to such a situation. Both actions proposed have got there own risks.
-9-
The most frequently occurring ethical violations in finance relate to insider trading, stakeholder interest versus stockholder interest, investment management, and campaign financing. Business in general and financial markets in particular are replete with examples of violations of trust and loyalty in both public and private dealings. Fraudulent financial dealings, influence peddling and corruption in governments, brokers not maintaining proper records of customer trading, cheating customers of their trading profits, unauthorized transactions, insider trading, misuse of customer funds for personal gain, mispricing customer trades, and corruption and larceny in banking have become common occurrences. Insider trading is perhaps one of the most publicized unethical behaviors by traders. Insider trading refers to trading in the securities of a company to take advantage of material "inside" information about the company that is not available to the public. Such a trade is motivated by the possibility of generating extraordinary gain with the help of nonpublic information (information not yet made public). It gives the trader an unfair advantage over other traders in the same
- 10 -
security. Insider trading was legal in some European countries until recently. In the United States, the 1984 Trading Sanctions Act made it illegal to trade in a security while in the possession of material nonpublic information. The law applies to both the insiders, who have access to nonpublic information, and the people with whom they share such information. Campaign financing in the United States has been a major source of concern to the public because it raises the issue of conflict of interest for elected officials in relation to the people or lobbying groups that have financed their campaigns. The United States has a long history of campaign finance reform. The Federal Election Commission (FEC) administers and enforces the federal campaign finance statutes enacted by the Congress from time to time. Many states have also passed lobbying and campaign finance laws and established ethics commissions to enforce these statutes.
- 11 -
For a finance and accounting professional working as consultant or auditor

A finance and accounting professional in public practice should take reasonable steps to identify circumstances that could pose a conflict of interest. Such circumstances may give rise to threats to compliance with the fundamental principles. For example, a threat to objectivity may be created when a professional accountant in public practice competes directly with a client or has a joint venture or similar arrangement with a major competitor of a client.
For a finance and accounting professional working as an employer

A finance and accounting professional has a professional obligation to comply with certain fundamental principles which have been detailed below. There may be times, however, when their responsibilities to an employing organization and the professional obligations to comply with the fundamental principles are in conflict.
- 12 -
Ordinarily, a finance and accounting professional should support the legitimate and ethical objectives established by the employer and the rules and procedures drawn up in support of those objectives. Nevertheless, where compliance with the fundamental principles is threatened, a finance and accounting professional must consider a response to the circumstances. As a consequence of responsibilities to an employing organization, a finance and accounting professional may be under pressure to act or behave in ways that could directly or indirectly threaten compliance with the fundamental principles. Such pressure may be explicit or implicit; it may come from a supervisor, manager, director or another individual within the employing organization. A finance and accounting professional may face pressure to: Act contrary to law or regulation. Act contrary to technical or professional standards. Facilitate unethical or illegal earnings management strategies. Lie to, or otherwise intentionally mislead (including misleading by remaining silent) others, in particular: The auditors of the employing organization; or Regulators. Issue, or otherwise be associated with, a financial or non-financial report that materially misrepresents the facts, including statements in connection with, for example: The financial statements; Tax compliance; Legal compliance; or Reports required by securities regulators.
- 13 -
A creation of a proper ethical environment requires a proper understanding of the reasons which lead to un ethical behaviour.
Four such reasons are discussed below.,
1. Emphasis on short term results . This is one of the

primary reasons which has led to the downfall of many companies like Enron and WorldCom. Manipulating accounting entries to depict good profitability can help companies raise further capital from the market.
2. Ignoring small unethical issues : It is a known fact that

most often the compromises we make start small however they lead us to large problems. Similarly, companies need to develop an environment where small ethical lapses are taken seriously so that they do not repeat in the future. Otherwise, toleration of such small lapses could lead to larger problems.
3. Economic cycles : When Enron was doing well , no one had

bothered to understand its actual financial position. There were no question marks on its financial statements. However, when the
- 14 -
economy took a downward turn, finance and accounting managers took decisions which were compromises over the established code of conduct. This was done to reflect a financial position which would keep the investors in the market satisfied. All this resulted in a huge crisis and the ultimate fall of this US Giant. Hence, to prevent disclosure of ethical problems in times of depression, company need to be extremely careful and vigilant during good times.
4. Accounting rules : In the era of globalisation and massive

cross border flow of capital, accounting rules are changing faster than ever before. The rules have become more complex and it is difficult to identify deviations from these complex set of requirements. The complexity of these principles and rules and the difficulty associated with identifying abuse are reasons which may promote un ethical behaviour.
- 15 -
Certain fundamental principles need to be adhered with for behaving in an ethical manner. These principles have been summarised below;
1. The principle of Integrity

The dictionary meaning of integrity is veracity. Accordingly, the principle calls upon all accounting and finance professionals to adhere to honesty and straight forwardness while discharging their respective professional duties. In addition the following acts of responsibility would help comply with the Integrity principle, a) Avoid being involved in activities which would impair the goodwill of the organization b) Communicate adverse as well as favourable information with those concerned c) Refuse any gift or favour which could influence actions taken or to be taken d) Refuse to get involved in any activity which would adversely affect the achievement of an organizations objective. e) Avoid conflicts and advise related parties on apparent conflicts which could arise in the future.
- 16 -
2. The principle of objectivity

This principle requires accounting and finance professionals to stick to their professional and financial judgement. They should not allow bias,conflicting interests or undue influence of others to override their business judgements . They should communicate information fairly and objectively in such a way that the communication with he end user is complete and transparent.
3. The principle of confidentiality

This principle requires practitioners of accounting and financial management to refrain from disclosing confidential information related to their work. Such information may be however be disclosed to their subordinates and care should be taken that the latter maintains confidentiality. The only exception to this principle is when there are requirements to disclose information under a legal obligation or because of some statutory ruling.
4. The principle of professional competence and due care

Finance and accounting professionals have a need to update their professional skills from time to time. This has assumed a greater significance in the modern day competitive environment where updated knowledge and skill shall ensure that the client or employer receives competent professional services based upon current and contemporary developments in the related areas.
5. The principle of professional behaviour

This principle requires accounting and finance professionals to comply with relevant laws and regulations and avoid such actions which may result into discrediting the profession.
- 17 -
Ethical issues in the financial services industry affect everyone, because even if one doesnt work in the field, but one is a consumer of the services. The public seems to have the perception that the financial services sector is more unethical than other areas of business. This misperception persists for several reasons. First of all, the industry itself is quite large. It encompasses banks, securities firms, insurance companies, mutual fund organizations, investment banks, pensions funds, mortgage lenders any company doing business in the financial arena. Because of its vast size, the industry tends to garner lots of headlines, many of which tout its ethical lapses. This business that were talking about is really big. It is, to be precise, $50 trillion in assets. Its growing 8 percent a year, which is more than twice as fast as the gross domestic product. Its also highly profitable. The financial services sector of the S&P 500 represents 20 percent of this indexs market capitalization. These companies are making a lot of money serving one.
- 18 -
So, with trillions of dollars of assets, billions of transactions every yearevery day probablywhen a small percentage of them is inappropriate, the absolute numbers are still pretty big. The industry is also highly regulated, so its likely that a higher percentage of these bad transactions are identified and reported, perhaps more so than in other less regulated industries. But ethical lapses do occur, mainly five reasons why these misdeeds may happen. 1) Self-interest sometimes morphs into greed and selfishness, which is unchecked self-interest at the expense of someone else. This greed becomes a kind of accumulation fever. If one accumulate for the sake of accumulation, accumulation becomes the end, and if accumulation is the end, theres no place to stop,. The focus shifts from the long-term to the short-term, with a big emphasis on profit maximization. For example, swaps (where two communication companies agree to exchange the right to use excess bandwidth on their networks) fall into this category. Each company recognizes the income generated in the quarter earned and defers the expenses through capitalizing them as an asset and logging the cost as a recognized expense over time, resulting in an inflated bottom line. This is what happened at Qwest during the first three quarters of 2001, when the company was selling $870 million of capacity, while at the same time buying $868 million of capacity. These swaps appeared to be round-trip transactions, which served no purpose other than to inflate Qwests revenues. Companies were making money out of their finance department not from selling products, not from doing what the company did, not
SEMINAR REPORT ETHICS IN FINANCE asset mix,.
- 19 -
from fulfilling the companys mission, but from playing around with its
2) Some people suffer from stunted moral development: This happens in three areas: the failure to be taught, the failure to look beyond ones own perspective, and the lack of proper mentoring, Business schools too often reduce everything to an economic entity. They do this by saying the fundamental purpose of a business is to make money, maximize profit, or the really jazzy words maximize shareholder value, or something like that. And it never gets questioned. Now if the fundamental purpose never gets questioned, the ethics never get questioned, because the fundamental purpose of something gives one the reason for its existence. It tells you whether one is doing it well or not. It's the ultimate ethical question: What's it purpose? 3) Some people equate moral behavior with legal behavior, disregarding the fact that even though an action may not be illegal, it still may not be moral. One ought to remember that the reason for all laws is that the moral agreement begins to break down, and the way to get other people in line is to legislate so that we can stipulate punishments, . Yet some people contend that the only requirement is to obey the law. They tend to ignore the spirit of the law in only following the letter of the law. For example, IRS regulations repeatedly single out actions with no legitimate business purpose (like swaps.) If one is doing things with no legitimate business purpose in order to avoid taxation, what is he doing? He is violating the spirit, is one not? One is staying within the letter, but theres no purpose there except to get one around the law, he said.
- 20 -
4) Professional duty can conflict with company demands. For example, a faulty reward system can induce unethical behavior. A purely self-interested agent would choose that course of action which contains the highest returns to himself or herself, he said. For example, consider the misguided practice of selling indexed annuities to the elderly. If a company is paying a high commission for that product, say 15 percent, versus a lower commission for a more appropriate product, say 3 percent, a salesperson may disregard the needs of the client and/or assume that the company supports this product and its applicability by its willingness to pay five fold the compensation. Sooner or later, people are going to give in to that temptation. The purely self-interested agent is just responding to the reward system that is in place, One needs to take a look at what one is rewarding. In general, organizations get exactly what they reward. They just dont realize that their rewards structures are encouraging dysfunctional or counter-productive behavior or turn a blind eye to the outcome 5) Individual responsibility can wither under the demands of the client. Sometimes the push to act unethically comes from the client. How many people expect their accountants to pad their expenses where possible? How many clients expect their insurance agents to falsify their applications or claims? Thats the temptationyou like your client, youve gotten to know your client, you really want to help your client outthats just another conflicting loyalty, Suggestions for improvements in the industry to encourage more ethical behavior. In the financial services industry, the main work is that people who do business are, for the most part, highly ethical people trying to do the right thing most of the time. Most of them are trying to help their clients achieve their financial objectives. But how
- 21 -
could this be better, because clearly, even if one is right, there are still a lot of issues and problems in the business? First of all, consumers need to be better informed. It is the responsibility to take control of their own financial security, which doesnt mean one needs to know everything about the product one is buying in advance, but one should read enough to know what some of the right questions are to ask. Ask those insightful questions of an advisor whom you know, trust, and who has the proper credentials, if applicable. Other suggestions included: Incentive compensation better aligned with customers interests, rather than agents more industry trade associations supporting ethics initiatives the Center for Ethics in Financial Services growing in influence and impact
Ethics of CARE(CREDIT ANALYSIS ANDRESEARCH ENTERPRISES)

Integrity & Transparency : A commitment to be ethical, sincere and open in our dealings. Pursuit of excellence: A commitment to strive relentlessly to constantly improve ourselves. Fairness: Treat clients, employees and other stakeholders fairly. Independence: We pride our independence, are unbiased and fearless in expressing our opinion
- 22 -
Thoroughness: We like to do rigorous analysis and research on every assignment that we take.
Financial transactions typically take place in organized markets, such as stock markets, commodities markets, future or options markets, currency markets and the like. These markets presuppose certain moral rules and expectations of moral behaviour. The most basic of these is a prohibition against fraud and manipulation, but, more generally, the rules and expectations for markets are concerned with fairness, which is often expressed as a level playing field. The playing field in financial markets can become tilted by many factors, including unequal information, bargaining power and resources. In addition to making one-time economic exchanges, participants in markets also engage in financial contracting whereby they enter into long term relations. These contractual relations typically involve the assumption of fiduciary duties or obligations to act as agents, and financial markets are subject to un is itself an ethical value because
- 23 -
ethical conduct when fiduciaries and agents fail in a duty. In the standard model of contracting, the terms of a contract specify the conduct required of each party and the remedies for non compliance. In short ,there is little Wiggle Room in a well written contract. However, many contractual relations in finance and other areas fall short of this ideal, because actual contracts are often vague, ambiguous, incomplete or otherwise problematic. The result is uncertainty and disagreement about what constitutes ethical (as well as legal) conduct. Much of the necessary regulatory framework for financial markets is provided by law. The Securities Act of 1933 and the Securities Exchange framework Commission for markets (SEC) in constitute securities the main regulatory financial and particular
investment institutions, such as banks, mutual funds and pension and insurance companies are governed by industry specific legislation.
EQUITY AND EFFICIENCY

The main aim of financial market regulation is to ensure efficiency, but markets can be efficient only when people have confidence in their fairness and equity. Efficiency achieving the maximum output with the minimum input-which is a simple definition of efficiencyprovides the general welfare. A society is generally better off when capital markets, for example, allocate the available capital to its most productive uses. People will participate in capital markets, however, only if the markets are perceived to be fair, that is fairness has value as a means to the end of efficiency.
FAIRNESS IN MARKETS
- 24 -
What constitutes fairness in financial markets? Fairness is not a matter of preventing loses. Markets produce winners and losers and in many cases the gain of some persons comes from an equal loss to others (although market exchanges are typically advantageous to both parties). In this respect, playing the stock market is like playing a sport. The aim is not to prevent losses but only to ensure that the game is fair. Still, there may be good reasons for seeking to project individual investors from harm, even when the harm does not involve unfairness. Just as bean balls are forbidden in baseball (but playing hardball is okay), so too are certain harmful practices prohibited in the financial market place. The regulation of financial markets protects not only individual investors, but also the general public. The stock market crash of 1929, which prompted the first securities legislation, profoundly affected the entire country. Everyone is harmed when financial markets do not fill their main purpose but become distorted by speculative activity or disruptive trading practices. The deleterious effect of stock market speculation is wryly expressed by John Maynard Keyness famous quip: when the capital development of a country becomes a by-product of the activities of a casino, the job is likely to be ill-done. More recently, the question of whether junk bonds or programs trading pose risks to the stability of the financial markets has been a subject of dispute. The possible ways in which individual investors and members of society can be treated unfairly by the operation of financial markets are many, but the main kinds of unfairness are the following: Frauds and Manipulation:- One of the main purposes of securities regulation is to prevent fraudulent and manipulative practices in the sale of securities. The common law definition of fraud is the willful misrepresentation of a material fact that causes harm to a person
- 25 -
who reasonably relies on the misrepresentation. Section 17(a) of 1933 Securities Act and Section 10(b) of the 1934 Securities Exchange Act both prohibit anyone involved in the buying or selling of securities from making false statements of a material fact, omitting a fact that makes a statement of material facts misleading or engaging in any practice or scheme that would serve to defraud. Investors-both as buyers and as sellers- are particularly vulnerable to frau because the value of financial instruments depends almost entirely on information that is difficult to verify. Much of the important information is in the hands of issuing firm and so antifraud provisions in securities law place an obligation not only on buyers and sellers of a firms stock, for example, but also on the issuing firm. Thus, a company that fails to report bad news may be committing fraud, even though the buyer of that companys stock buys it a previous owner who may or may not be aware of the news. Insider trading is prosecuted as a fraud under section 10(b) of the Securities Exchange Act on the grounds that any material non public information ought to be revealed before trading. Manipulation generally involves the buying or selling of securities for the purpose of creating a false or misleading impression about the direction of their price so as to induce other investors to buy or sell the securities. Like fraud, manipulation is designed to decive others, but the effect is achieved by the creation of false or misleading appearances rather than by false or misleading representations. Fraud and manipulation are addressed by mandatory disclosure regulations as well as by penalties for false and misleading statements in any information released by a firm. Mandatory disclosure regulations are justified, in part, because they promote market efficiency. Better informed investors will make more rational investment decisions and they will do so at lower overall cost. A
- 26 -
further justification, however, is the prevention of fraud and manipulation under the assumption that good information drives out bad. Simply put, fraud and manipulation are more difficult to commit when investors have easy access to reliable information. Equal information:- a level playing field requires not only that everyone play by the same rules, but also that they be equally equipped to compete. Competition between parties with very unequal information is widely regarded as unfair because the playing field is tilted in favor of the player with superior information. When people talk about equal information, however they may mean that the parties to a trade actually possess the main information or have equal access to information. That everyone should posses the same information is an unrealizable ideal and actual markets are characterized by great information asymmetries. The average investor cannot hope to compete on equal terms with a market pro and even pros often possess different information that leads them to make different investment decisions. Moreover, there are good reasons for encouraging people to acquire superior information for use in trade. Consider stock analysts and other savvy investors who spend considerable time,effort and money to acquire information. Not only are they ordinarily entitled to use this information for their own benefit (because it represents a return on an investment), but they perform a service to everyone by ensuring that stocks are accurately priced. The possession of unequal information strikes us as unfair, then only when the information has been illegitimately acquired or when its use violates some obligation to others. One argument against insider trading, for example, holds that an insider has not acquired the information legitimately but has stolen( or misappropriated) information that rightly belongs to the firm. In this argument, the
- 27 -
wrong fullness of insider trading consists not in the possession of unequal information but in violating a moral obligation not to steal or a fiduciary duty to serve others. Insider trading can also be criticized on the grounds that others do not have the same access to the information, which leads us to the second sense of equal information, namely equal access. The trouble with defining equal information as having equal access to information is that the notion of equal access is not absolute but relative. Any information that one person possesses could be acquired by another with enough time, effort and money. An ordinary investor has access to virtually all of the information that a stock analyst uses to evaluate a companys prospects. The main difference is that the analyst has faster and easier access to information because of an investment in resources and skills. Anyone else could make the same investment and thereby gain the same access-or a person could simply buy the analysts skilled services. Therefore, accessibility is not a feature of information itself but a function of the investment that is required in order to obtain information. Although efficiency and fairness both support attempts to reduce information asymmetries in financial markets, exactly what fairness or justice requires is not easy to determine. Consider, for example, whether a geologist, who concludes after careful study that a widows land contains oil, would be justified in buying the land without revealing what he knows. A utilitarian could argue that without such opportunities, geologists would not search for oil and so society as a whole is better off if such advantage taking is permitted. In addition, the widow herself, who would be deprived of a potential gain, is better off in a society that allows some exploitation of superior knowledge. A difficult task for securities regulation, then is drawing a line between fair and unfair advantage taking when people have unequal access to information.
- 28 -
Equal Bargaining Power:- Generally, agreements reached by arms-length bargaining are considered to be fair, regardless of the actual outcome. A trader, who negotiates a futures contract that results in a great loss for example, has only himself or herself to blame. However, the fairness of bargained agreements assumes that the parties have relatively equal bargaining power. Unequal bargaining power can result from many sources- including unequal information, which is discussed above-but other sources include the following factors. A) Resources:- In most transactions, wealth is an advantage. The rich are better able than the poor to negotiate over almost all matters. Prices of groceries in low income neighborhoods are generally higher than those in affluent areas, for example, because wealthier customers have more options. Similarly, large investors have greater opportunities. They can be better diversified; they can bear greater risk and thereby obtain higher leverage, they can gain more from arbitrage through volume trading; and they have access to investments that are closed to small investors. B) Processing Ability:Even with equal access to information, people vary enormously in their ability to process information and to make informed judgments. Unsophisticated investors are ill advised to play the stcok market and even more so to invest in markets that only professional understand. Fraud aside, financial markets can be dangerous places for people who lack an understanding of risks involved. Securities firms and institutional investors overcome the problem of peoples limited processing ability by employing specialists in different kinds of markets and the use of computers in program trading enables these organizations to substitute machine power for gray matter.
- 29 -
C) Vulnerabilities:- investors are only human and human beings have many weaknesses that can be exploited. Some regulation is designed to protect people from the exploitation of their vulnerabilities. Thus, consumer protection legislation often provides for cooling off period during which shoppers can cancel an impulsive purchase. The requirements that a prospectus accompany offers of securities and that investors be urged to read the prospectus carefully serve to curb impulsiveness. Efficient Pricing:- Fairness in financial markets includes efficient prices that reasonably reflect all available information. A fundamental market principle is that the price of securities should reflect their underlying value. The mandate to ensure fair and orderly marketsset forth in Securities Exchange Act of 1934- has been interpreted to authorize invention to correct volatility or excess price swings in stock markets. Volatility that results from a mismatch of buyers and sellers is eventually self correcting, but in the meantime, great harm may be done by inefficient pricing. Individual investors may be harmed by buying at too high a price or selling at too low price during periods of mispricing. Volatility also affects the market by reducing investor confidence, thus driving investors away and some argue that the loss of confidence artificially depress stock prices. At its worst, volatility can threaten the whole financial system.
- 30 -
There are many issues to consider when deciding to invest ethically. This section seeks to explain more about these issues and provide clarification on the wide range of strategies and methodologies employed by fund managers when deciding ethical strategies. This should be used in conjunction with our inter-active tools to assist you in deciding on the most appropriate asset allocation when considering which ethical funds to invest in.
What is ethical investment?

Ethical Investment has been defined as putting your money where your morals are, or investing according to your beliefs. The term
- 31 -
"ethical investment" has been in circulation for over 20 years, since the first ethical fund was launched in 1984. The idea behind the ethical philosophy is that the fund manager will pick companies that have the potential to do well both socially and financially. The roots of SRI can be traced back to the nineteenth century where religious orders such as Quakers and Methodists were concerned with issues such as temperance and fair employment. At the beginning of the 1900s the Methodist Church decided to invest in the stock market whilst specifically avoiding companies involved in alcohol and gambling. This trend accelerated as more churches, charities and individuals began to take ethical considerations into account when investing. The first ethical fund in the UK was launched in 1984 by Friends Provident. Ethical investment allows individuals, companies and charities to invest in a socially responsible way, without compromising their beliefs and principles. Most investment wrappers (ISAs, pensions etc) will allow you to choose a fund that suits your beliefs, so that one can make a positive statement with their money. The careful selection processes involved in ethical investment can help to identify companies that have the potential to do well, both socially and financially. An ethical fund manager will judge stocks on both their positive and negative attributes, examples of which are shown below: A) Government legislation of pension funds have contributed to making ethical investment an issue for pensioneer trustees. Pensioneer trustees now have to disclose the extent to which social, ethical and environmental issues are taken into account when constructing fund asset allocations. Ethical fund managers now have considerable influence in the policy making decisions of multinational companies. This makes running a business without a robust SRI policy is against the commercial
SEMINAR REPORT ETHICS IN FINANCE engagement.
- 32 -
interest of companies who can be held to account by shareholder
Companies who attract negative publicity and fines because of poor ethical practices will are increasingly in the spotlight and will under perform. Well run companies with a good SRI policy will not be tarnished by future issues and are likely to be attrative for investors along with start-up companies producing sustainable energy products as alternatives to relying on unsustainable fossil fuels. B) Investing in environmental solutions:- There is growing acceptance that environmental problems are not going to disappear. In fact, current trends show that they are growing in importance. Green investment focuses on investing in companies responding to environmental challenges, either by developing a product or service which solves an environmental problem, or by working to limit their impact on the environment. Green investment seeks competitive advantage by spotting trends in environmental technologies at an early stage. The massive increase in environmental regulation over recent decades has fuelled a greater understanding of green issues. For a growing number of companies these regulations represent a growth market largely unaffected by economic cycles. Increased consumer awareness for environmental issues creates new market for products such as organic food or renewable energy. C) Retail:- Companies that put principles and systems in place to deal with supply chain issues such as child labour and sustainable timber are, for example, GUS and Argos. Sainsbury was named Organic Supermarket of the year from 2002 to 2004 by the UK Soil Association as an example of a company embracing the use of
SEMINAR REPORT ETHICS IN FINANCE specialises in organic foods.
- 33 -
organic and fair-trade products. US food retailer, Wholefoods Market,
D) Clean energy:- With an increasing focus on climate change and energy security, over 48 countries worldwide have developed policies promoting renewable energy. Global energy demand is expected to rise over 50% by 2030 according to the International Energy Agency. Investments are made in technologies such as wind, solar and fuel cells, as well as emissions reduction. E) Sustainable living:- Rising obesity and a focus on food quality have resulted in health-conscious consumers paying more attention to the food they buy and what they eat. Sales of organic food are now worth more than 1.12bn to UK retailers and the market is growing at twice the rate of the general grocery market. Combined with an ageing population, the trend for healthy lifestyles has created investment opportunities healthcare. in organic food, complimentary medicines and
F)
Environmental
Services:-
Increasing
health,
safety
and
environmental regulation across the globe has resulted in new markets for companies providing solutions to environmental and social problems. Examples include environmental consultancies and companies providing specialist equipment that minimises the risk of safety incidents. G) Long-term performance from environmental solutions:- The publication of the World Energy Outlook in November 2005 by the International Energy Agency (IEA) prompted wide-ranging
- 34 -
international press coverage. It highlighted the need to reduce our global dependence on fossil fuels. While environmental concerns, in particular climate change, have been central to this debate, the issue that has dominated headlines of late is the concern over the longterm sustainability of non-renewable fossil fuels. This is particularly so in light of an increase in demand for this type of energy from countries such as China and India. Unsustainable energy trends means alternatives must be found In its latest World Energy Outlook, the IEA stated that global energy demand is expected to rise by more than 50% by 2030. The Agency warned that current trends are unsustainable and that if renewable energy sources are not tapped, oil prices will soar on increased demand and greenhouse gas emissions will rise by an estimated 52% by 2030. H) Increased legislation will mean further growth opportunities:- As concern grows over global greenhouse gas emissions, governments around the world are setting policy initiatives to promote and encourage the development and use of cleaner energy. Examples include the EU Renewable Energy Directive and EU Emissions Trading Scheme. The Chinese government has stated that 15% of all China's energy must come from sources other than fossil fuels by 2020. The successful outcome of the recent climate change talks in Montreal has sent a clear signal that the future lies in clean and more sustainable technologies. The growth potential of renewable energy sources will attract a wide investment audience As businesses embrace these changes there will be more opportunities for growth in this sector. Fifteen years ago there were no quoted companies operating in the alternative energy sector. Now there are over 75 companies worldwide operating in either the solar, wind, or fuel cell area and many more at an unquoted level. These companies are of interest to all investors, not just those with an ethical focus.
SEMINAR REPORT ETHICS IN FINANCE increasingly climate important is to all
- 35 -
Investing in environmental solutions is becoming investors. most Whilst change the prominent
environmental issue in the news at the moment, there are many other reasons why a green approach to investing can pay for investors. Over the last 30 years environmental issues on a broader scale have increasingly moved to centre stage as there is wide acceptance that environmental problems are not going to disappear. Other environmental problems, particularly those associated with scarcity of water, natural resources and pollution, are believed to be amongst some of the greatest issues facing the world today. From an investment perspective, the need to reduce dependence on fossil fuels means that the renewable energy industry is a long-term structural-growth story. I) Environment policy delivers improvements:- Environment policy has been seen as one of the success stories of the European Union bringing improvements in areas such as cleaner air and safer drinking water. In the UK, DEFRA (the Department of the Environment, Food and Rural Affairs) is responsible for approximately 30% of all legislation coming from Europe, more than any other government department. In addition to increasing legislation, enforcement against offenders is also being stepped up In the US, federal initiatives like the Superfund program, which aims to clean up hazardous waste sites, have raised the financial stakes for businesses. This pattern is being repeated around the world. For example, in its latest five year plan, China announced a significant increase in environmental and health and safety regulation. These issues are set to remain high on the political agenda. J) Environmental consultants:- The trend for increasing regulation creates opportunities for consultancies. Their specific knowledge and
- 36 -
expertise allows them to provide advice and develop solutions for companies who are subject to regulation and don't have sufficient expertise in-house. Wind energy is essential if the UK Government is going to meet its target of 20% reduction in carbon dioxide emissions by 2010. This rapidly growing sector of the global electricity generation market and has averaged 28% annual growth for the past five years. A key new area of growth in the next few years is off-shore wind power.
FUND RAISING EXECUTIVE
SEMINAR REPORT ETHICS IN FINANCE A. They shall be
- 37 responsible for conducting activities in
accordance with accepted professional standards of accuracy, truth and good faith. B. They shall encourage institutions they serve: To conduct their affairs in accordance with accepted principles of sound business and financial management, and accounting procedures To use donations only for the donors' intended purposes. To comply with applicable local, provincial and federal laws. C. They shall recommend to the institutions they serve, only those fund-raising goals which they believe can be achieved, based on their professional experience, and an investigation, and rational analysis of the facts. D. They shall work for salary, retainer or fee, not a commission. If employed by a fund-raising organization, the organization shall operate in its client/consultant relationship on the basis of a predetermined fee, and not a percentage of funds raised. E. They shall make full disclosure to employers, clients or, if requested, potential donors, all relationships which might pose or appear to pose possible conflicts of interest. As fundraising executives they will neither seek, nor accept, "finder's fees". F. They shall hold confidential, and leave intact, all lists, records and documents, acquired in the service of current or former employers, and clients. G. The public demeanor shall be such, as to bring credit to the fund-raising profession.
- 38 -
UNDERWRITER
A. They shall provide advice and service which
are in the client's best interest. One who possessing a specific body of knowledge which is not possessed by the general public has an obligation to use that knowledge for the benefit of the client and to avoid taking advantage of that knowledge to the detriment of the client. In a conflict of interest situation the interest of the client must be paramount. They must make a conscientious effort to ascertain and to understand all relevant circumstances surrounding the client. They have to accord due courtesy and consideration to those engaged in related professions who are also serving the client. They have to give due regard to any agent principal relationship which may exist between the member and such companies as he may represent.
B.
They
shall
respect
the
confidential
relationship existing between client and member. Competent advice and service may necessitate the client sharing personal and confidential information with the member.
- 39 -
Such information is to be held in confidence by the member unless released from the obligation by the client. C. They shall continue his education
throughout his professional life. To advise and serve competently, a member must continue to maintain and to improve his professional abilities. Continuing Education includes both the member adding to his knowledge the practice of his profession; and, the member keeping public. They may continue his education through formal or informal programs of study or through other professional experiences. D. service. Advice and service, to be competent, must be ongoing as the client's circumstances change and as these changes are made known to the member. A client with whom a member has an active professional relationship is to be informed of economic and legislative changes which relate to the client-member relationship. To enhance the public regard for professional designations and allied professional degrees held by members . They shall render continuing advice and abreast of changing economic and legislative conditions which may affect the financial plans of the insuring
SEMINAR REPORT ETHICS IN FINANCE E.
- 40 -
A member shall obey all laws governing his
business or professional activities. Business activities are non-personal activities carried on outside the life insurance community; professional activities are non-personal activities carried on within the life insurance community. A member has a legal obligation to obey all laws applicable to his business and professional activities. F. They shall avoid activities which detract
from the integrity and professionalism. Activities which could present a violation of this Profession might include: (1) Failure to obey a law unrelated to the member's business or professional activities. (2) Impairing the reputation of another practitioner. (3) Unfairly competing with another practitioner. (4) Actions which result in the discrediting their own reputation.
FINANCIAL ANALYST
A. Act with integrity, competence, diligence, respect, and in an ethical manner with the public, clients, prospective clients, employers, employees, colleagues in the investment profession and other participants in the global capital markets. B. Place the integrity of the investment profession and the interests of clients above their own personal interests.
SEMINAR REPORT ETHICS IN FINANCE judgment when
- 41 -
C. Use reasonable care and exercise independent professional conducting investment analysis, making investment recommendations, taking investment actions, and engaging in other professional activities. D. Practice and encourage others to practice in a professional and ethical manner that will reflect credit on themselves and the profession. E. Promote the integrity of and uphold the rules governing, capital markets. F. Maintain and improve their professional competence and strive to maintain and improve the competence of other investment professionals.
AUDITOR
A) Integrity Shall perform their work with honesty, diligence, and responsibility. Shall observe the law and make disclosures expected by the law and the profession. Shall not knowingly be a party to any illegal activity, or engage in acts that are discreditable to the profession of internal auditing or to the organization. Shall respect and contribute to the legitimate and ethical objectives of the organization.
B) Objectivity Shall not participate in any activity or relationship that may impair or be presumed to impair their unbiased assessment.
- 42 -
This participation includes those activities or relationships that may be in conflict with the interests of the organization. Shall not accept anything that may impair or be presumed to impair their professional judgment. Shall disclose all material facts known to them that, if not disclosed, may distort the reporting of activities under review. C) Confidentiality Shall be prudent in the use and protection of information acquired in the course of their duties. Shall not use information for any personal gain or in any manner that would be contrary to the law or detrimental to the legitimate and ethical objectives of the organization. D) Competency Shall engage only in those services for which they have the necessary knowledge, skills, and experience. Shall perform internal auditing services in accordance with the International Standards for the Professional Practice of Internal Auditing. Shall continually improve their proficiency and the effectiveness and quality of their services.
FINANCIAL PLANNERS
A) They should endeavor as professionals to place the public interest above their own. B) They should seek continually to maintain and improve their professional knowledge, skills, and competence. C) They should obey all laws and regulations and avoid any conduct or activity which could cause unjust harm to those
SEMINAR REPORT ETHICS IN FINANCE members.
- 43 and skill of the
who rely upon the professional judgment
D) They should be diligent in the performance of their occupational duties. E) They should assist in improving the public understanding of financial planning. F) They should assist in maintaining the integrity of the Code of Professional.
BANK LOAN & CREDIT OFFICERS

There are two cardinal principles in the exchange of credit information: confidentiality and accuracy of inquiries and replies. This includes the identity of inquirers and sources which cannot be disclosed without their permission. Adherence to these and the other principles embodied in this Code is essential, since offenders jeopardize their privilege to participate further in the exchange of credit information. Confidentiality, as it is used here, is based on the reliance placed upon the fidelity of another with whom information is being exchanged. A trust is placed in all parties involved that the information has been requested for a legitimate purpose and will not be used indiscriminately. When conducting investigations, the identity of the Inquirer should not be divulged without its authorization. Similarly, the identity of the source of the information should not be made known without its authorization. The facts presented must be accurate because the bank reference is one of the most pertinent sources of credit information. When discussing data, favorable or unfavorable, the responding bank must give a reply that is restricted to or based on fact. If a discrepancy is discovered within
- 44 -
a reasonable time after an inquiry has been answered and is considered to be significant in relation to the purpose of the inquiry, it is prudent and ethical that the discrepancy be disclosed to the inquirer. It is expected that, as a matter of professional courtesy, no liability will be attached to or result from the good faith exchange of information. If the information is for a customer, it should be screened according to the customer's needs, credit sophistication, and ability to handle the information discreetly. Adherence to these and the other principles embodied in this Code of Ethics is essential. Violations of the Code could damage the reputation of offending banks and individuals and may have an adverse effect on the customer. If banks or individuals demonstrate an inability and/or unwillingness to handle and exchange credit information responsibly, they risk losing the privilege. Each inquiry should specifically indicate its purpose and the amount involved. One of the most important elements of an inquiry is its purpose. The bank receiving the inquiry has a right to know why the information is needed. If no purpose is given, the bank has no obligation to respond. Knowing and understanding the purpose of an inquiry places the recipient in a better position to respond with the type and amount of information needed to satisfy the inquirer. When the purpose of the inquiry is solicitation, acquisition, merger, competition, or existing or intended legal action, reply is at the discretion of the bank of account. The inquirer should state the initial steps taken, as well as the information on hand, in order to avoid duplication of effort. Inquiries may be initiated either by telephone or in writing. In the interest of timeliness, many member banks regularly accept telephone inquiries.
- 45 -
The legitimate use of credit information is to assist an inquirer who expects to extend credit or otherwise rely on the subject of the inquiry in business dealings. An inquiry should not be answered without first determining its legitimacy and establishing the identity of the inquirer. For example, when receiving a telephone inquiry, information should not be disclosed on the first call unless the inquirer is known and identified. A return call may be used to establish the identity of the inquirer. In the majority of instances, a specific amount is involved in the transaction which generates an inquiry. When initial trade credit is involved and no amount is established, the inquiring party should be asked for the normal size of its transactions. A range of figures such as $500-$1,000 or $50,000-$60,000 is acceptable. It is unacceptable to use fictitious figures or to inflate the amount involved to induce the responding bank to provide details beyond what may be necessary to answer the inquiry suitably. If for some reason there is no amount involved, the inquirer should state this in a manner which would logically satisfy the respondent as to the overall purpose of the inquiry. A proper inquiry should contain the following: A) SUBJECT: The subject of the inquiry should be identified as completely as possible including full name, address, and names of the principals. B) PURPOSE: The reason for the inquiry should be given in sufficient detail to allow the recipient to make an appropriate response. C) EXPERIENCE: If the inquirer has had experience with the subject, a summary of that experience should be provided. Doing this creates
SEMINAR REPORT ETHICS IN FINANCE effort.
- 46 -
a true exchange of information and helps to eliminate duplication of D) REQUIREMENTS: The inquirer should be specific about the information required to satisfy the needs of the inquiry, such as deposit relationships, loan experience, financial information, assessment (of) management, etc. E) OTHER: Any other factors relevant to the inquiry should be disclosed. Responses should be prompt and disclose sufficient material facts commensurate with the purpose and amount of the inquiry. Specific questions should be given careful and frank replies. Prompt and accurate replies are signs of dependability and professionalism that help the users of the information conduct business on a timely basis. It is appropriate to respond using the same method in which the request is presented, depending on the nature of the inquiry.
- 47 -
In light of the various corporate scandals mentioned above, the following three points need tobe addressed for creating a sound ethical environment in any company. They are, 1. Ensuring that employees are aware of their legal and ethical responsibilities. Ethical organisations would have policies to train and motivate employees toward ethical behaviour. This would require initiation from the top. A number of companies, both in the West and in India have been known for their quality and soundness of their Ethics programmes. Companies like Raytheon make ethics training compulsory for everyone. Similarly Texas Instruments has a well drafted Ethics programme from as long as 1961. In India Wipro was amongst the pioneers to establish an organised set of beliefs which would guide business conduct. This was done as early as 1970s. In the process the company has established an Integrity manual which helps employees take ethical decisions when faced with choices. 2. Providing a communication system between the
management and the employees so that any one in the company can report about fraud and mismanagement without the fear of being reprimanded Ethical organisations need to provide facilities for employees through which they could communicate with responsible positions for reporting frauds, mismanagement or any other form of non routine detrimental behaviour. In India Wipro has introduced a helpline
- 48 -
comprising of senior members of the company who are available for guidance on any moral, legal or ethical issues that an employee of the company may face. 3. Ensuring fair treatment to those who act as whistle blowers. This is perhaps the most important and sensitive issue. When Sherron had raised questions at Enron, she was demoted. Similar fate would have met all those who had followed Sherron. Fair treatment to whistle blowers is a basic necessity to check fraud. It is re assuring that two of the three persons of the year, selected by the popular Time magazine were accountants from Enron and World Com who had dared to blow the whistle, however, needless to say that the appreciation is much more needed from within the company rather than outside.
- 49 -
The dynamic environment in which businesses operate today may usher a broad range of circumstances because of which compliance with the above mentioned fundamental principles may potentially be threatened. Such threats may be classified as follows: (a) Self-interest threats, which may occur as a result of the financial or other interests of a finance and accounting professional or of an immediate or close family member; (b) Self-review threats, which may occur when a previous judgment needs to be reevaluated by the finance and accounting professional responsible for that judgment; (c) Advocacy threats occur when a professional promotes a position or opinion to the point that subsequent objectivity may be compromised; (d) Familiarity threats occur when a finance and accounting professional has close relationships in the work environment and such relationships impair his selfless attitude towards work. (e) Intimidation threats occur when a professional may be prohibited from acting objectively by threats, actual or perceived.
SEMINAR REPORT ETHICS IN FINANCE THREATS.
- 50 -
EXAMPLES OF CIRCUMSTANCES CREATING ABOVE MENTIONED Circumstances leading to the actual happening of the various threats are given below. A) B) Self interest threat for finance and accounting professionals working as consultants or auditors A financial interest in a client or jointly holding a financial interest with a client. Undue dependence on total fees from a client. Having a close business relationship with a client. Concern about the possibility of losing a client. Potential employment with a client. Contingent fees relating to an assurance engagement. Self interest threat for finance and accounting
professionals working as an employee Financial interests, loans and guarantees in the company the professional is working. Incentive compensation arrangements Inappropriate personal use f corporate assets. Concern over employment security Commercial pressure from outside the employing organisation
C) Self review threat for finance and accounting professionals working as consultants or auditors The discovery of a significant error during a re-evaluation of the work of the finance and accounting professional. Reporting on the operation of financial systems after being involved in their design or implementation. Having prepared the original data used to generate records that are the subject matter of the engagement.
- 51 -
A member of the assurance team being, or having recently been, a director or Officer of that client. A member of the assurance team being, or having recently been, employed by the Client in a position to exert direct and significant influence over the subject matter of the engagement.
D) Self review threat for finance and accounting professionals working as an employee Such threats occur when business decisions or data is subjected to review and justification is required to be given by the same professional who was responsible for taking such decisions or preparing that data. E) Advocacy threat for finance and accounting professionals working as consultants or auditors Promoting shares in a listed entity* when that entity is a consultancy or a financial statement audit client. Acting as an advocate on behalf of an assurance client in litigation or disputes with third parties. F) Advocacy threat for finance and accounting professionals working as an employee. When furthering the legitimate goals and objectives of their employing organizations finance and accounting professionals may promote the organizations position, provided any statements made are neither false nor misleading. Such actions generally would not create an advocacy threat. G) Familiarity threats for finance and accounting
professionals working as consultants or auditors
- 52 -
A member of the engagement team having a close or immediate family relationship with a director or officer of the client.
A member of the engagement team having a close or immediate family relationship with an employee of the client who is in a position to exert direct and significant influence over the subject matter of the engagement.
A former partner of the firm being a director or officer of the client or an employee in a position to exert direct and significant influence over the subject matter of the engagement.
Accepting gifts or preferential treatment from a client, unless the value is clearly insignificant.
H)
Long association of senior personnel with the assurance client. Familiarity threats for finance and accounting
professionals working as an employee A finance and accounting professional, in a position to influence financial or non financial reporting or business decisions having an immediate or close family member who is in a position to benefit from that influence. Long association with business contacts influencing business decisions. Acceptance of a gift or preferential treatment, unless the value is clearly insignificant.
SEMINAR REPORT ETHICS IN FINANCE I) Intimidation threat
- 53 for finance and accounting
professionals working as consultants or auditors Being threatened with dismissal or replacement. Being threatened with litigation. Being pressured to reduce inappropriately the extent of work performed in order to reduce fees. J) Intimidation threat for finance and accounting
professionals working as employees Threat of dismissal or replacement of the finance and accounting professional or a close or immediate family member over a disagreement about the application of an accounting principle or the way in which financial information is to be reported for external use as well as for decision making purposes. A dominant personality attempting to influence the decision making process, for example with regard to the exclusion of irrelevant costs from projected cost estimates.
- 54 -
It is important to have safeguards which may increase the likelihood of identifying or deterring unethical behavior. Such safeguards, which may be created by the finance and accounting profession, legislation, regulation or an employing organization, shall ensure an ethical environment. categories: (a) Safeguards created by the profession, legislation or regulation; and (b) Safeguards in the work environment. A) Some of the safeguards created by the profession, legislation or regulation are as follows Educational, training and experience requirements for entry into the profession. Continuing professional development requirements. Corporate governance regulations. Professional standards. Professional procedures. External review by a legally empowered third party of the reports, returns, communications or information produced by concerned professionals. or regulatory monitoring and disciplinary Safeguards that may eliminate or reduce the abovementioned threats to an acceptable level fall into two broad
- 55 -
B) Safeguards in the work environment are as follows. The employing organizations systems of corporate oversight or other oversight structures. The employing organisations ethics and conduct programs. Recruitment emphasizing procedures the in the of employing employing organisation high caliber importance
competent staff. Strong internal controls. Appropriate disciplinary processes. Leadership that stresses the importance of ethical behavior and the expectation that employees will act in an ethical manner. Policies and procedures to implement and monitor the quality of employee performance. Timely communication of the employing organisations policies and procedures, including any changes to them, to all employees and appropriate training and education on such policies and procedures. Policies and procedures to empower and encourage employees to communicate to senior levels within the employing organization any ethical issues that concern them without fear of retribution.
- 56 -
While evaluating compliance with the fundamental principles, a finance and accounting professional may be required to resolve a conflict in the application of fundamental principles. The following needs to be considered, either individually or together with others, during a conflict resolution process, (a) Relevant facts; (b) Ethical issues involved; (c) Fundamental principles related to the matter in question; (d) Established internal procedures; and (e) Alternative courses of action. Having considered these issues, a finance and accounting
professional should determine the appropriate course of action that is consistent with the fundamental principles identified. The professional should also weigh the consequences of each possible course of action. If the matter remains unresolved, the professional should consult with other appropriate persons within the firm* or employing organization for help in obtaining resolution. During times where a matter involves a conflict with, or within, an organization, finance and accounting professional should also consider consulting with those charged with governance of the organisation, such as the board of directors.
- 57 -
It may be in the best interests of the professional to document the substance of the issue and details of any discussions held or decisions taken, concerning that issue. If a significant conflict cannot be resolved, a professional may wish to obtain professional advice from the relevant professional body or legal advisors, and thereby obtain guidance on ethical issues without breaching confidentiality. For example, a professional accountant may have encountered a fraud, the reporting of which could breach the professional accountants responsibility to respect confidentiality. The professional accountant should consider obtaining legal advice to determine whether there is a requirement to report. If, after exhausting all relevant possibilities, the ethical conflict remains unresolved, a professional should, where possible, refuse to remain associated with the matter creating the conflict. The professional may determine that, in the circumstances, it is appropriate to withdraw from the engagement team or specific assignment, or to resign altogether from the engagement, the firm or the employing organization.
- 58 -
In the broadest sense, a fraud is a deception made for personal gain. Fraud is a crime, and is also a civil law violation. Many hoaxes are fraudulent, although those not made for personal gain are not technically frauds. Defrauding people of money is presumably the most common type of fraud. In criminal law, fraud is the crime or offense of deliberately deceiving another in order to damage them usually, to obtain property or services unjustly. Fraud can be accomplished through the aid of forged objects. Fraud can be committed through many methods, including mail, wire, phone, and the internet (computer crime and internet fraud). Bank fraud is a federal crime in many countries, defined as planning to obtain property or money from any federally insured financial institution. It is sometimes considered a white-collar crime. Frauds in the financial sector can be categorized broadly as: A) Frauds by insiders B) Frauds by outsiders
FRAUDS BY INSIDERS
Rogue Traders
FRAUDS BY OUTSIDERS
Forged and Altered Cheque
SEMINAR REPORT ETHICS IN FINANCE Fraudulent Loans Wire Fraud Forged Documentation Uninsured Deposits Theft of Identity Demand Draft Fraud
- 59 Stolen Cheque Accounting Fraud Bill Discounting Fraud Cheque kitting Payment Card Fraud Booster Cheques Stolen Payment Cards Skimming Credit Card Information Impersonation Fraudulent loan Application Prime Bank Fraud Fictious Bank Officer Phishing Money Laundering
Various Financial Frauds

J.P. Morgan Chase
J. P. Morgan Chase & Co. was formed with the merger of The Chase Manhattan Corporation and J.P. Morgan & Co. Inc., What may have seemed like an indicator of continued prosperity for this industry giant instead brought hard times for the firm. A year after the merger, energy provider Enron declared bankruptcy, and few banks had as many dealings with them as J.P. Morgan Chase. They face numerous lawsuits from their shareholders, those of Enron, and other parties involved in the deals.
Why is J. P. Morgan accused of fraud? Though Merrill Lynchs involvement with Enron was publicized more highly than that of other investment firms, the bankrupt energy company is accused of receiving loans from many sources, one of which was J.P. Morgan. This has led to several lawsuits.
One suit has been filed by insurance companies that stood to lose money for insuring transactions between Enron and J.P. Morgan. The
- 60 -
insurance companies allege that they should not be liable for deals that J.P. Morgan executives knew to be shams. J.P. Morgan is also being sued in the Enron shareholder suit that includes as defendants Enron executives, Arthur Andersen LLP, a number of banks, and several law firms. Enron shareholders believe that J.P. Morgan helped Enron take out loans that were disguised as purchases and trades.
At the same time, J.P. Morgan faces lawsuits from its own shareholders, who claim that the company didnt properly inform them of how much it stood to lose in its dealings with Enron. Finally, a group of banks that combined to make an enormous loan to Enron in its dying days is considering filing suit against J.P. Morgan. At issue is whether or not J.P. Morgan organized the loan so that it could be repaid for some of its loans to Enron, fully aware that the company would soon declare bankruptcy.
What is the current status? The lawsuit filed by the ten insurance companies has been settled. The plaintiffs, originally on the hook for about $1 billion to J.P. Morgan, have agreed to pay about 60 percent of it. J.P. Morgan executives have been questioned about their roles in the fall of Enron, but, to date, no criminal charges have been filed against them.
Morgan Stanley
- 61 -
Morgan Stanley is one of the largest investment banking firms in USA. The global securities market is one of Morgan Stanleys primary business arenas. The firm serves both individual and institutional investors. Along with several other high-profile firms, Morgan Stanley has recently endured a number of questions about conflicts of interest and potential fraud.
When was the possible fraud discovered ? Top Wall Street firms have recently been required to pay large fines to regulators for alleged partiality in their stock reports to investors. In December 2002, a preliminary agreement was reached with 12 U.S. investment banks in which they agreed to pay a combined total of over 1 billion dollars. The Securities and Exchange Commission (SEC) and state regulators brought accusations against the banks in the preceding months, alleging that investment banks had let conflicts of interest color their stock reports.
Morgan Stanley has also been individually targeted by the worlds leading luxury item maker, LVMH. The leadership at LVMH has accused Morgan Stanley of allowing a conflict of interest to interfere with its research reporting. Gucci, a long-time rival of LVMH, has close ties with Morgan Stanley. While LVMH claims that this relationship caused Morgan Stanley to unfairly spin its stock reports to investors, Morgan Stanley is vehemently denying any accusation of fraud. The lawsuit by LVMH was filed in a French court in November. What type of fraud is alleged to have been committed ? The charges filed by the SEC and state regulators against a host of investment banks are roughly synonymous to the accusations against Morgan Stanley by LVMH. Both claim that conflicts of interest have contributed to dishonest stock reports to investors. If LVMH wins its case against Morgan Stanley, it will be because it shows convincing
- 62 -
evidence that the securities firm put its interest in Gucci ahead of its duty to present investors with an accurate picture of stocks value.
Zurich Financial Services, Converium Holding AG Settle Reinsurance Fraud Charges

The Securities and Exchange Commission today announced settled civil securities fraud charges against Zurich Financial Services and Converium Holding AG, now known as SCOR Holding (Switzerland) AG, relating to finite reinsurance transactions. The SEC's orders find that Zurich's former reinsurance group, which operated under the name Zurich Re and was later spun off in 2001 as Converium, designed three reinsurance transactions to make it appear that risk had been transferred to third-party entities when, in fact, the risk remained with Zurich-controlled entities. According to the SEC's orders, Zurich Re and later Converium improperly used reinsurance accounting for the transactions enabling them to artificially inflate their performance figures. This misconduct allowed Zurich to receive a significant windfall when it spun off Converium in a December 2001 initial public offering. Converium continued the fraudulent scheme following the IPO. Zurich and Converium agreed to settle the SEC's charges without admitting or denying the SEC's findings, and Zurich will pay a $25 million penalty.
- 63 -
WIPROS CODE OF ETHICS FOR PRINCIPAL AND FINANCE OFFICERS:

Wipros Promise With utmost respect to Human Values, we promise to serve our customer with Integrity, through Innovative, Value for Money Solutions, by Applying Thought, day after day. Our promise is at the core of Corporate Governance Practice in Wipro. In the Information Age, Information is the Key asset. As custodians of Information and assets, the Code of Ethics for Principal Officer and Finance Professionals is codified as under. Applicability The Code of Ethics applies to the Principal Officer and all the employees in Finance Function in Wipro. The Principal Officer and all the employees in the Finance Function are expected to abide by this code as well as other applicable Wipro policies or guidelines. Any violation of Wipro Code of Ethics may result in disciplinary action, up to and including immediate termination. Wipros Code of Ethics for Principal Officer and Finance Professionals I. Principle of Professional & Personal Integrity: Act with honesty and integrity, avoiding actual or apparent conflicts of interest in personal and professional relationships. Confidential information acquired in the course of one's work will not be used for personal advantage.
- 64 -
Achieve responsible use of and control over all assets and resources employed or entrusted.
II. Principle of Propriety& Relevance of Information: Provide all stakeholders with information that is accurate, complete, objective, relevant, timely and understandable. Respect the confidentiality of information acquired in the course of one's work except when authorized or otherwise legally obligated to disclose. III. Principle of Compliance: Comply with rules and regulations of all Public Authorities in all the geographies in which Wipro operates. IV. Principle of Role models of Highest Standards of Corporate Governance: Act in good faith, responsibly, with due care, competence and diligence, without misrepresenting material facts or allowing one's independent judgment to be subordinated. Share knowledge and maintain skills important and relevant to stakeholders needs. Proactively promote and be an example of ethical behavior as a responsible partner among peers, in the work environment and the community.
ECOLABS Code of Ethics for Senior Officers and Finance Associates
In my role as a Senior Officer or Finance Associate at Ecolab, I have
- 65 -
adhered to and advocated to the best of my knowledge and ability the following principles and responsibilities governing professional conduct and ethics: A) Act with honesty and integrity, avoiding actual or apparent conflicts of interest in personal and professional relationships. A "conflict of interest" exists when an individual's private interests interfere or conflict in any way (or even appear to interfere or conflict) with the interests of the Company. B) Provide information that is full, fair, accurate, complete, objective, relevant, timely and understandable, including in and for reports and documents that the Company files with, or submits to, the SEC and other public communications made by the Company. C) Comply with all applicable laws, rules and regulations of federal, state and local governments, and other appropriate private and public regulatory agencies. D) Act in good faith, responsibly, with due care, competence and diligence, without misrepresenting material facts or allowing my independent judgement to be subordinated. E) Respect the confidentiality of information acquired in the course of business except when authorized or otherwise legally obligated to disclose the information. I acknowledge that confidential information acquired in the course of business is not to be used for personal advantage. F) Proactively promote ethical behavior among my associates at the Company and as a responsible partner with industry peers and associates.
- 66 -
G) Maintain control over and responsibly manage all assets and resources employed or entrusted to me by Ecolab. H) Adhere to and promote this Code of Ethics. This Code of Ethics is intended to supplement the Ecolab Code of Conduct and company policies regarding ethical practices in the finance area. All procedures for upholding, enforcing, and complying with the Code of Conduct are also applicable to this Code of Ethics. The Ecolab Law Department should be asked to help interpret or apply this Code as required.
- 67 -
In the end it can be said that approaches to dealing with ethical problems in finance range from establishing ethical codes for financial professionals to efforts to replace the rational-maximizer (egoistic) paradigm that underlies the modern capitalist system by one in which individuals are assumed to be altruistic, honest, and basically virtuous. It is not uncommon to find established ethical codes and ethical offices in corporations and in financial markets. Ethical codes for financial markets are established by the official regulatory agencies and self-regulating organizations to ensure ethically responsible behavior on the part of the operatives in the financial markets. One of the most important and powerful official regulatory agencies for the securities industry in the United States is the Securities and Exchange Commission (SEC). It is in charge of implementing federal securities laws, and, as such, it sets up rules and regulations for the proper conduct of professionals operating within its regulatory jurisdiction. Many professionals play a role within the securities industry, among the most important of which are accountants, broker-dealers, investment advisers, and investment companies. Any improper or unethical conduct on the part of these professionals is of great concern to the SEC, whose primary responsibility is to protect investor interests and maintain the integrity of the securities market. The SEC can censure, suspend, or bar professionals who practice within its regulatory domain for lack of requisite qualifications or unethical and improper conduct. The SEC also oversees selfregulatory organizations (SROs), which include stock exchanges, the National Association of Security Dealers (NASD), the Municipal Securities Rulemaking Board (MSRB), clearing agencies, transfer agents, and securities information processors. An SRO is a membership organization that makes and enforces rules for its
- 68 -
members based on the federal securities laws. The SEC has the responsibility of reviewing and approving the rules made by SROs. Other rule-making agencies include the Federal Reserve System, the Federal Deposit Insurance Corporation (FDIC), and state finance authorities. Congress has entrusted to the Federal Reserve Board the responsibility of implementing laws pertaining to a wide range of banking and financial activities, a task that it carries out through its regulations. One such regulation has to do with unfair or deceptive acts or practices. The FDIC has its own rules and regulations for the banking industry, and it also draws its power to regulate from various banking laws passed by Congress. In addition to federal and state regulatory agencies, various professional associations set their own rules of good conduct for their members. The American Institute of Certified Public Accountants (AICPA), the American Institute of Certified Planners (AICP), the Investment Company Institute (ICI), the American Society of Chartered Life Underwriters (ASCLU), the Institute of Chartered Financial Analysts (ICFA), the National Association of Bank Loan and Credit Officers (also known as Robert Morris Associates), and the Association for Investment Management and Research (AIMR) are some of the professional associations that have well-publicized codes of ethics. There has been an effort to address the ethical problems in business and finance by reexamining the conceptual foundation of the modern capitalist system and changing it to one that is consistent with the traditional model of agency relationship. The proponents of a paradigm shift question the rational-maximizer assumption that underlies the modern financial-economic theory and reject the idea that all human actions are motivated by self-interest. They embrace an alternative assumptionthat human beings are to some degree
- 69 -
ethical and altruisticand emphasize the role of the traditional principal-agent relationship based on honesty, loyalty, and trust. Duska (1992) argues: "Clearly, there is an extent to which [Adam] Smith and the economists are right. Human beings are self-interested and will not always look out for the interest of others. But there are times they will set aside their interests to act on behalf of others. Agency situations were presumably set up to guarantee those times." The idea that human beings can be honest and altruistic is an empirically valid assumption; it is not hard to find examples of honesty and altruism in both private and public dealings. There is no reason this idea should not be embraced and nurtured. As Bowie (1991) points out: "Looking out for oneself is a natural, powerful motive that needs little, if any, social reinforcement. . . . Altruistic motives, even if they too are natural, are not as powerful: they need to be socially reinforced and nurtured". If the financial-economic theory accepts the fact that behavioral motivations other than that of wealth maximization are both realistic and desirable, then the agency problem that economists try to deal with will be a nonproblem. For Dobson (1993), the true role of ethics in finance is to be found in the acceptance of "internal good" ("good" in the sense of "right" rather than in the sense of "physical product"), which, he adds, is what classical philosophers describe as "virtue" that is, the internal good toward which all human endeavor should strive. He contends: "If the attainment of internal goods were to become generally accepted as the ultimate objective of all human endeavor, both personal and professional, then financial markets would become truly ethical"
- 70 -
Anand Shetty "Ethics in Finance". Encyclopedia of Business, 2nd ed..FindArticles.com. 23 Jan. 2009. available at:http://findarticles.com/p/articles/mi_gx5209/is_1999/ai_n19125703 Anand Prakash Jangid(ACA, CISA,DISA, CISM, ACP), LESSONS TO BE LEARNT FROM THE WORLDS BIGGEST BANKING FRAUD SOCIETE GENERALE Bowie, Norman E. (1991). "Challenging the Egoistic Paradigm." Business Ethics Quarterly. 1. 1-4. Bowie, Norman E., and Freeman, Edward R., eds. (1992). Ethics and Agency Theory: An Introduction. New York: Oxford University Press. Boatright R. John;(2003) Ethics and the conduct of business 4th Edition, Pearson education. Pg. 339 to 368 DeGeorge, Richard T. (1992) "Agency Theory and the Ethics of Agency." In Norman E. Bowie and Edward R. Freeman, eds. Ethics and Agency Theory: An Introduction. New York: Oxford University Press. Dempsey, Mike. (1999). "An Agenda for Window-Dressing or for Radical http://panopticon.csustan.edu/cpa99/html/dempsy.html. Dobson, John. (1993). "The Role of Ethics in Finance." Financial Analysis Journal. November-December: 57-61. Dobson John; H.Alford; Rowman & Littlefield, Finance Ethics: the rationality of virtue; Lanham and Oxford, 1997, pp. 159; ISBN 08476-8401-6 (cloth) 0-8402-4 (paper) available at
Change?"
- 71 -
http://www.pust.edu/oikonomia/pages/genn/recensione.html Duska, Ronald R. (1992). "Why Be a Loyal Agent? A Systematic Ethical Analysis." In Ethics and Agency Theory: An Introduction. Norman E. Bowie and Edward R. Freeman, eds., New York: Oxford University Press. Frowen, S.F. and McHugh, F.P., eds. (1995). ed. Financial DecisionMaking and Moral Responsibility. New York: Macmillan. Goodpaster, Kenneth E. (1991). "Business Ethics and Stake-holder Analysis." Business Ethics Quarterly. 1. 53-71. Hartman P. Laura;(2004) Perspectives in business ethics; Second Edition; the Tata Mcgrawhill Companies; pg no. 582 to 645. Nadler, Paul S. (1989). "Ethics and the Financial Community." Secured Lender. January-February. Internet Web Source:http://books.google.co.in/books? id=BiEWtnbREV8C&dq=ethics+in+finance&source=bn&sa=X&oi=bo ok_result&resnum=4&ct=book-thumbnail http://www.enotes.com/business-finance-encyclopedia/ethics-finance http://www.ecolab.com/Investor/Governance/codeofethics.asp http://www.scu.edu/ethics/practicing/focusareas/business/fina ncial-services.html http://www.ibe.org.uk/teaching/Ethics%20and%20financial %20services.pdf http://www.careratings.com/content/aboutcare/vision.aspx
- 72 -
http://www.pressreleasepoint.com/zurich-financial-servicesconverium-holding-ag-settle-reinsurance-fraud-charges

Seminar

Transféré par

Informations du document

Description originale:

Copyright

Formats disponibles

Partager ce document

Partager ou intégrer le document

Options de partage

Avez-vous trouvé ce document utile ?

Ce contenu est-il inapproprié ?

Droits d'auteur :

Formats disponibles

Seminar

Transféré par

Droits d'auteur :

Formats disponibles

SEMINAR REPORT ETHICS IN FINANCE

SEMINAR REPORT ETHICS IN FINANCE

SEMINAR REPORT ETHICS IN FINANCE

SEMINAR REPORT ETHICS IN FINANCE describing the conflict

SEMINAR REPORT ETHICS IN FINANCE

SEMINAR REPORT ETHICS IN FINANCE

Enron is a classic example of such behaviour. Months before Enron

SEMINAR REPORT ETHICS IN FINANCE

SEMINAR REPORT ETHICS IN FINANCE

SEMINAR REPORT ETHICS IN FINANCE

SEMINAR REPORT ETHICS IN FINANCE

SEMINAR REPORT ETHICS IN FINANCE

For a finance and accounting professional working as consultant or auditor

For a finance and accounting professional working as an employer

SEMINAR REPORT ETHICS IN FINANCE

SEMINAR REPORT ETHICS IN FINANCE

Four such reasons are discussed below.,

1. Emphasis on short term results . This is one of the

2. Ignoring small unethical issues : It is a known fact that

3. Economic cycles : When Enron was doing well , no one had

SEMINAR REPORT ETHICS IN FINANCE

4. Accounting rules : In the era of globalisation and massive

SEMINAR REPORT ETHICS IN FINANCE

1. The principle of Integrity

SEMINAR REPORT ETHICS IN FINANCE

2. The principle of objectivity

3. The principle of confidentiality

4. The principle of professional competence and due care

5. The principle of professional behaviour

SEMINAR REPORT ETHICS IN FINANCE

SEMINAR REPORT ETHICS IN FINANCE

SEMINAR REPORT ETHICS IN FINANCE asset mix,.

SEMINAR REPORT ETHICS IN FINANCE

SEMINAR REPORT ETHICS IN FINANCE

Ethics of CARE(CREDIT ANALYSIS ANDRESEARCH ENTERPRISES)

SEMINAR REPORT ETHICS IN FINANCE

SEMINAR REPORT ETHICS IN FINANCE

EQUITY AND EFFICIENCY

SEMINAR REPORT ETHICS IN FINANCE

SEMINAR REPORT ETHICS IN FINANCE

SEMINAR REPORT ETHICS IN FINANCE

SEMINAR REPORT ETHICS IN FINANCE

SEMINAR REPORT ETHICS IN FINANCE

SEMINAR REPORT ETHICS IN FINANCE

SEMINAR REPORT ETHICS IN FINANCE

What is ethical investment?

SEMINAR REPORT ETHICS IN FINANCE

SEMINAR REPORT ETHICS IN FINANCE engagement.

interest of companies who can be held to account by shareholder

SEMINAR REPORT ETHICS IN FINANCE specialises in organic foods.

organic and fair-trade products. US food retailer, Wholefoods Market,

SEMINAR REPORT ETHICS IN FINANCE

SEMINAR REPORT ETHICS IN FINANCE increasingly climate important is to all

SEMINAR REPORT ETHICS IN FINANCE

FUND RAISING EXECUTIVE

SEMINAR REPORT ETHICS IN FINANCE A. They shall be

- 37 responsible for conducting activities in

SEMINAR REPORT ETHICS IN FINANCE

SEMINAR REPORT ETHICS IN FINANCE

SEMINAR REPORT ETHICS IN FINANCE E.

A member shall obey all laws governing his

SEMINAR REPORT ETHICS IN FINANCE judgment when

SEMINAR REPORT ETHICS IN FINANCE