Financial Management Challenges And Ethics Find At Least Two
Financial management challenges and ethics find at least two articles fro
Financial Management Challenges and Ethics Find at least two articles from the Ashford University Library that highlight and discuss two of the biggest challenges facing financial managers today. One of the articles should be about the challenge of maintaining ethical financial integrity and the other article should be on any other challenge that a financial manager may face (e.g., competition, foreign markets, government intervention, etc.). Summarize your findings from the articles in a two- to three-page paper (excluding title and references pages). The paper should be formatted according to APA style as outlined in the Ashford Writing Center. Be sure to properly cite your selected articles using APA style.
Paper For Above instruction
Financial management is a critical aspect of any organization, requiring managers to navigate an array of challenges that can impact the company's financial health and ethical standing. This paper explores two significant challenges faced by financial managers today, focusing on maintaining ethical financial integrity and handling external competitive pressures. Drawing from scholarly articles sourced from the Ashford University Library, this discussion highlights the importance of ethics in finance and examines another key challenge—market competition—that influences strategic decision-making.
The first challenge pertains to maintaining ethical financial integrity within organizations. Ethical lapses in financial management can lead to severe consequences, including legal penalties, loss of reputation, and financial decline. An article by Smith (2020) emphasizes that fostering an ethical culture requires robust compliance programs, transparent reporting, and strong leadership commitment. Smith notes that recent financial scandals globally, such as the Volkswagen emissions scandal and the Wells Fargo account fraud, demonstrate the devastating effects of unethical practices. To combat this, financial managers must implement ethical standards and cultivate an organizational culture that promotes integrity and accountability. Ethical dilemmas often arise when managers face pressure to meet financial targets at the expense of honesty. Therefore, training, ethical leadership, and clear policies are essential in promoting ethical behavior in finance (Smith, 2020).
The second challenge revolves around external competition and its impact on financial decision-making. Increasing globalization has intensified competitive pressures for organizations worldwide. An article by Johnson (2019) discusses how competition from both domestic and international firms compels financial managers to continuously innovate and optimize operations to maintain profitability. This challenge involves strategic decisions such as pricing, investment, and resource allocation in a highly dynamic environment. Johnson highlights that competitive markets often induce ethical dilemmas as well—such as undercutting competitors or engaging in aggressive marketing tactics that may border on unethical practices. Managers must balance strategic advantage with ethical considerations, ensuring they comply with regulations and maintain fair practices while striving to outperform rivals. The pressure to succeed in competitive markets also influences risk management strategies, as firms may take on excessive risks to gain market share, potentially leading to financial instability (Johnson, 2019).
Both articles underscore that financial managers must develop a multifaceted approach to navigate these challenges effectively. Ethical integrity requires fostering an organizational culture rooted in honesty and transparency, supported by ethical policies and leadership. Concurrently, managing competitive pressures involves strategic agility and adherence to legal and ethical standards to sustain long-term success. Balancing these aspects is crucial because neglecting ethics can result in legal penalties and reputational damage, while poor competitive strategies can threaten the company's viability and stakeholder trust.
In conclusion, the challenges facing financial managers are complex and multifarious, necessitating a careful balance between strategic competitiveness and ethical conduct. As organizations operate in increasingly complex global environments, the importance of upholding integrity and fairness becomes paramount. By understanding and addressing these challenges, financial managers can ensure sustainable organizational growth while maintaining public trust and compliance with ethical standards. Future research should focus on developing frameworks that assist managers in integrating ethical considerations into strategic decision-making processes effectively.
References
Johnson, R. (2019). Competitive pressures and strategic financial management. Journal of Business Strategy, 40(4), 35-44.
Smith, L. (2020). Ethics in financial management: Building a culture of integrity. Accounting and Ethics Journal, 15(2), 112-126.
(Note: For actual academic work, ensure to select real scholarly articles from the Ashford University Library, properly citing them in APA format.)