Ethical Behavior Can Be Viewed At A Personal Level As Well A ✓ Solved

Thical Behavior Can Be Viewed At A Personal Level As Well As A Corpor

Thical behavior can be viewed at a personal level, as well as a corporate level. In business, personal ethics is often tied to the agency theory and at the corporate level tied to corporate social responsibility. For this discussion forum, First, identify one real-life example of personal ethics and one real-life example of corporate social responsibility in the financial field from the last five years (no Enron or WorldCom examples, as these are too old). The example can be positive or negative. Note: When possible, select a different example than those already posted by a fellow classmate.

Next, explain each ethical example and what might have been done differently, as well as what you learned from the example. Finally, select one financial business regulation (e.g., Sarbanes-Oxley Act of 2002, Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, etc.) and debate how it does or does not promote ethical behavior. Be sure to be specific when describing the regulation. What are other ways to ensure strong ethical business decisions? Your initial response should be a minimum of 200

Sample Paper For Above instruction

Ethical behavior plays a crucial role in both personal and corporate contexts within the financial industry. Understanding and exemplifying ethics at both levels ensures transparency, trust, and integrity in financial dealings. In recent years, several examples highlight the importance of ethics in finance, showcasing both positive initiatives and notable lapses, as well as the role of regulations in fostering ethical practices.

Personal Ethics in Finance: The Case of Robinhood

Robinhood, a popular stock trading platform, exemplifies personal ethics in the financial sector through its commitment to democratizing finance and providing accessible trading tools. However, in recent years, Robinhood faced criticism for its handling of user trading restrictions during the 2021 meme stock surge. The platform temporarily limited trading on certain stocks, which many users perceived as prioritizing institutional interests over retail investors. This decision raised ethical questions about transparency, fairness, and the duty of financial service providers to their clients.

What could Robinhood have done differently? Transparency about the reasons for trading restrictions and proactive communication could have mitigated the perception of unethical behavior. Emphasizing a customer-first approach and ensuring that trading limitations are clearly justified would have aligned better with personal ethical standards rooted in fairness and integrity. From this example, I learned that even well-intentioned companies must prioritize clear communication and uphold ethical standards, especially during volatile market periods.

Corporate Social Responsibility: Goldman Sachs’ Environmental Initiatives

Goldman Sachs has taken significant steps toward corporate social responsibility by spearheading environmental initiatives, such as committing to sustainable investing and reducing its carbon footprint. The firm has pledged billions of dollars toward renewable energy projects and sustainable infrastructure, aiming to combat climate change and promote social good. These actions demonstrate a commitment to ethical responsibility beyond profit maximization, aligning corporate strategies with broader societal values.

However, critics argue that some of Goldman Sachs’ investments still include fossil fuels and projects with questionable environmental impacts, suggesting that their CSR efforts might sometimes be perceived as greenwashing. A more consistent approach to environmental responsibility—such as excluding investments in damaging industries—would strengthen their ethical stance and demonstrate true commitment to social responsibility. This example taught me that genuine CSR requires consistent action and transparency, not just marketing claims.

Regulation Promoting Ethical Behavior: The Dodd-Frank Act of 2010

The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 was enacted to address the flaws exposed by the 2008 financial crisis. It aims to promote ethical behavior by increasing transparency, reducing risks, and protecting consumers. Key provisions include establishing the Consumer Financial Protection Bureau (CFPB), stricter oversight of derivatives markets, and enhanced reporting requirements for financial institutions.

Specifically, Dodd-Frank encourages ethical behavior by enforcing greater accountability among financial institutions and providing avenues for whistleblowers. The legislation discourages unethical risk-taking by implementing stress tests and capital requirements designed to prevent similar crises. While Dodd-Frank has made significant strides in promoting ethical conduct, challenges remain, such as complex compliance requirements and the risk of regulatory capture. Nevertheless, it represents a comprehensive effort to embed ethical standards into the regulatory framework that governs financial markets.

Other ways to ensure strong ethical business decisions include fostering a corporate culture that rewards integrity, implementing comprehensive ethics training programs, and establishing internal controls and whistleblower protections. These strategies promote an ethical environment that supports transparent and responsible financial practices, thereby enhancing trust and stability in the financial system.

References

• Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. (2010). U.S. Congress.
• Goldman Sachs. (2022). Environmental, Social, and Governance (ESG) Initiatives. Goldman Sachs.
• Robinhood. (2021). Company Statements and Market Actions. Robinhood Official Website.
• Baron, D. P. (2001). Private Politics, Corporate Accountability, and the Rise of CSR. Business and Society, 40(4), 303-329.
• Healy, P., & Palepu, K. (2001). Information Asymmetry, Corporate Disclosure, and the Capital Markets: A Review of the Empirical Disclosure Literature. Journal of Accounting and Economics, 31(1-3), 405-440.
• Hoffman, W. M., & Frederick, R. (2014). Business Ethics: Ethical Decision Making & Cases. Cengage Learning.
• Investopedia. (2023). Corporate Social Responsibility (CSR). Retrieved from https://www.investopedia.com/terms/c/corp-social-responsibility.asp
• Securities and Exchange Commission. (2022). Regulations and Enforcement. SEC.gov
• World Economic Forum. (2020). The Future of Financial Regulation. Weforum.org
• Yin, R. K. (2003). Case Study Research: Design and Methods. Sage Publications.