ETHICAL AND UNETHICAL ISSUES IN FINANCE

What is finance?

Finance is defined as the management of money and includes activities such as investing,borrowing,lending,budgeting,saving,and forecasting.

 

ETHICS IN FINANCE MANAGEMENT

                         

Finance is defined as money required for start of business or support of business.it is concerned with the allocation of assets and liabilities over space and time often under conditions of risk or uncertainty. they required to upload the highest ethical standards to upload the highest ethical standards because internal and external stakeholders depend on the transparent,timely and complete financial document to make decision.

ETHICAL ISSUES

•   Transparency 

It means explaining financial information clearly especially for the people who aren't familiar managers should not hide otherwise render relevant financial information impossible for ordinary shareholders to understand .

•  Integrity

Employees, shareholders,customers,stakeholder should have trust upon the managers, managers should not allow prejudice, bias, and conflicts of interest,they should be ethical, without disclosing any personal data of the customer.

• Timeliness

Timely updating of financial records is as important as being accurate and transparent.managers, stakeholders,investors have to get accurate that in the process of decision making.

UNETHICAL ISSUES

• Delaying payment of wages, incentives,interest to financiers, bonus to employees,etc.
• Creating fake bills of purchase to show high costs for not to pay a bonus to the employees 
• giving false promise to the customers and stakeholders
• Taking the loan from private financial institutions at a higher rate to avoid tax.

Not promoting sales tax,customs duty,ESL,PE,excise duty.