Financial Analysis. Lesson 42. Ethical Standards in Finance and Corporate Responsibility

Financial Analysis. Lesson 42. Ethical Standards in Finance and Corporate Responsibility

1. Ethical standards guide finance professionals to uphold integrity and fairness.

2. Corporate social responsibility (CSR) aligns business practices with societal and environmental goals.

3. Code of ethics outlines principles for responsible behavior in finance.

4. Transparency requires clear, accurate disclosure of financial information to stakeholders.

5. Fiduciary duty is the obligation to act in clients' best interests.

6. Conflict of interest arises when personal gain impacts professional decisions.

7. Insider trading is illegal trading based on non-public, material information.

8. Whistleblowing involves reporting unethical practices within an organization.

9. Fair dealing ensures equal treatment and honesty in financial transactions.

10. Due diligence involves thorough evaluation before financial commitments or recommendations.

11. Environmental, social, and governance (ESG) criteria guide responsible investment decisions.

12. Sustainable investing seeks financial returns along with positive societal impact.

13. Socially responsible investing (SRI) avoids companies with unethical practices.

14. Greenwashing misleads investors by falsely claiming sustainable or ethical practices.

15. Corporate governance establishes policies for accountability and ethical behavior.

16. Stakeholder theory considers the interests of all affected by business.

17. Transparency index rates the clarity and accuracy of company disclosures.

18. Anti-bribery policy prohibits accepting gifts or payments that influence decisions.

19. Data privacy protects sensitive information from unauthorized access or use.

20. Diversity and inclusion promotes equal opportunities within corporate culture.

21. Securities fraud involves misrepresentation of financial information to deceive investors.

22. Financial misconduct includes unethical actions like falsifying records or theft.

23. Ethical investing considers moral values when selecting investment opportunities.

24. Compliance training educates employees on legal and ethical responsibilities.

25. Audit committee ensures financial integrity and adherence to ethical standards.

26. Anti-money laundering (AML) prevents money laundering through regulatory compliance.

27. Stewardship involves responsible management of resources for future sustainability.

28. Triple bottom line (TBL) emphasizes profit, people, and planet in reporting.

29. Ethical dilemma presents a complex choice between conflicting moral principles.

30. Impact reporting discloses social or environmental impact alongside financial performance.

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Technical Examples:

1. Whistleblowing protects individuals who report unethical practices.

2. Conflict of interest policies reduce biases in financial decision-making.

3. Anti-money laundering (AML) practices prevent illicit financial activities and fraud.