HOW ETHICS IS MANAGED WITHIN THE BANKING AND FINANCE SECTOR

An ethical issue is a challenge, a chance, or a situation whereby an organization has to make a decision among a couple of actions that have to be assessed as right or wrong (Valen & Ivan, 2014). The way financial institutions spend their money can be assessed from an ethical and moral perspective. Since money is known to be the source of all evil in its many forms, it has many effects as well as consequences. Money is used to conduct crimes, human rights violation, threats, corruption as well as pollution.  Banks play a huge role in controlling the flow of money in the economy (Goyal & Vijay, 2011). Therefore, the way these organizations use their money is a major ethical concern.

This paper will explore how ethical management is done in the banking and finance institutions.

There are two major ways through which banks can facilitate wrongdoings. The first way is through lending money to individuals. This money helps in facilitating some action and those who do evil use it to fund their activities. Financial institutions, therefore, have the role for enacting, enabling, and promoting action realization when offering people loans and other lending services. The second way is through direct and active money investment. This involves possessing shares in organizations which act unethically in one way or the other (Federwisch, 2015). Banking involves growing as well as keeping people’s money safe. They therefore try to ensure that they maximize investment opportunities. Some banks get caught up in this process and charge their clients high interest rates (Snider et al., 2003). The financial institutions that charge abusive commissions and exaggerated interest rates as a way of manipulating the clients for selfish gain are considered to act unethically. These financial institutions are guilty of usury as they charge their clients more than is just and fair

PLACE THIS ORDER OR A SIMILAR ORDER BELOW TO GET AN AMAZING DISCOUNT. See also, capstone project assignment help in UAE, UK, USA