Essay about Ethics in Finance - 1156 Words

Identify an event or series of events that occurred in the financial marketplace falling within the realm of Financial Management, Financial Institutions and Markets, or Investments that raise significant ethical questions. Analyze the events, public policy responses and their impact on the financial markets and economy at large. Suppose you are the CEO of a well respected, multi-million dollar energy company. You stand at the forefront of innovation and you are world-renowned for your pioneering efforts in the energy industry. However, due to a series of poor financial decisions, your company is on the verge of bankruptcy. You realize that in order to protect your own interests and investments, desperate measures need to be taken.†¦show more content†¦The found out the truth about what was really happening to the tremendously â€Å"profitable† company and what the executives were really doing behind close doors. While stockholders believed that their stock with Enron was increasing as time went on, in actuality the total opposite was happening and they were losing money instead. Many stockholders because of the â€Å"profitability† of the stock, had put every cent they had into the company that even included retirement funds, to wake up the next day and have it depleted. This can all be attributed to the unethical practices that were performed by the executives at Enron. It was clear that the company was losing money and that the stockholders should be made aware of these loses but instead they decided to cover up what was happening. This event mislead people into believing that everything was going smoothly and there was nothing to worry about. The executives knew of what was to come in the future and began to sell stocks based on insider information making them richer and not caring that the stockholders were going to lose everything that they had invested into the company. These unethical practices would later be discovered and investigated by the federal government bringing up criminal charges against many of the top executives. In light of recent public scandals involving high-profile companies such as Enron, the ability of corporations to make ethical decisions has come intoShow MoreRelatedThe Ethics Of The Finance Industry1376 Words   |  6 Pagesone’s ethics, but also how ethical one’s decision is as a whole. In my career, I have never been put in an ethical dilemma, but at some juncture in my career in the finance industry, it is very possible I will. This paper will discuss; certain situations one might encounter in the business financial industry, what options one has in this dilemma, how certain ethical approaches would guide one’s decision, and my personal opinion on which approach I would utilize. 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