ETHICS IN FINANCE

PRESENTED BY

SIJIN SAJI
 ETHICS IN FINANCE

 Ethics in finance is one of the main things which everyone has to

follow from the small , medium and big level company because all
most all the country depend up on the financial background of the
country because without financial component no business can run for
a long time.
 FINANCIAL ACCOUNTING

It is defined as reporting of the financial

position and performance of a firm through
financial statements issued to external users
on a periodic basis.
 CHARACTERISTICS

 Financial statements are meant for invsetors , shareholders.

 Prepared in compliance with Generally Accepted Accounting

Principles(GAAP) .

 Accurate and timely.

 The statement portray the company’s past performance.

 The statement provide a picture of the business as a whole.

 FINANCIAL MANAGEMENT

 Financial analysis and planning

 Investment decisions

 Financing and capital structure decisions

 Management of financial resources

 RO L E O F F I N A N C E M A N AG E R

 Providing and interpreting financial information

 Business modelling and forecasting

 Monitoring performance and efficiency

 Analysing change,risk assessment

 Strategic planning.

 Formulating long term business plans

 ETHICAL ISSUES IN
FINANCE
Ethics in finance can be developed around three broad themes

 In financial markets

 In financial services industry

 By financial people in the organizations

 IN FINANCE MARKETS

 A set of rules and code of conduct sets expectations of market

dynamics work
 Based on information dissemination and resources.
Eg:Penalty imposed by SEBI on Rajiv B Gandhi his wife and sister for
insider trading. The script of Wockhardt on the basis of unpublished
price sensitive information. Knowing well that the share price would crash
once the results were published.The Gandhi sold there shares before the
board meeting took place.
 IN FINANCIAL SERVICES
INDUSTRY
 Which include the form of borrowing and lending.
 Financial intermediate such as commercial banks ,finance
companies,insurance companies.
 Financial service sectors ,that is ,fraud in credit cards,cheques and
other types of identity related services
 Insurance sector,that is,internal fraud committed by employees against
the insurer,fraud by policy holder and claims fraud,and fraud committed
by independent brokers.
 FINANCIAL PEOPLE IN
ORGANIZATION

 People in finance are employee of organization . This include person

who approve some project which should not be approved they approve in
order to gain money in term of bribe.Most of the unethical activities like
giving wrong report and wrong data to the company in order to get
money start from here which pushes whole financial market and service
industry down because all most in all organization there are lot a number
of people who are held in finance roles and activities.
 CONCLUSION

No business and company can run without finance .it is

lifeblood for all the organizations .si if almost all the field in finance
ethics in their duty almost all other process will function very well
without any fail.