Financial management is a responsibility that requires a vigilant; multi-faceted; multi-dimensional; ever-faithful; and ever-considerate conscientiousness concerning the funds that have been vouchsafed to the care and control of the financial manager.
Anything less could be construed as negligence or incompetence.
The vantage point of the financial manager has to be from an infrastructure of ethics that is held to the highest standard of care, consideration, and confidence possible under the particular circumstances that the financial manager is working.
Use your promo and get a custom paper on
"Legal and Ethical Considerations of Financial Managers".
According to the financial leader of the Eli Lilly and Company, it is not enough for a financial manager to provide constituents with information that is accurate; it has to be “complete, objective, relevant, timely, transparent and understandable…as well as both positive and negative, as is necessary to present an accurate picture of their financial status.” (Anonymous, 2013, p. 1)
Due to the dishonesty and unfaithfulness of some of those in positions of responsibility for the finances of others; those individuals that are more high-profile as financial managers of larger and more well-known companies are in a position to go above and beyond the expectations to behave ethically. They must not only understand and embrace all of their ethical responsibilities they must at all times avoid even the appearance of impropriety so they can function as shining examples to those that look to them for guidance as to how they should carry out their responsibilities as financial managers.
There is an element of social responsibility that comes with the position as a financial manager. In order to perceive this element accurately one has to consider the role that finances play in a society. I believe this role is as a means to an end, the end being a happier and healthier society because the finances have been used responsibly and for the highest and best good of the society that is being represented. This includes but is not limited to the notion of wise investment of the finances that result in the most good to the most people, or being well-ordered in nature.
This good that is referred to is looking toward the sort of legacy that will be left for the next generation as well as the current restoration of the trust of society as a whole in the financial management arena. Finally, this good refers to the strengthening of a company by establishing and adhering to a code of ethics, which allows for a greater level of outcome excellence and a greater flexibility and agility as team members which translates to better responses to problems that occur in the course of doing business. (Cosgrove-Sacks & Dembinski, 2012, pp. 319-322)
The vigilance that was mentioned is something that the individual financial manager has to exercise inwardly in that many times the financial manager behaves unethically because their employer had demands that conflicted with their professional duty. As well, there are many instances where the financial manager succumbs to the pressures of a particular client who they have gotten to know well; and because of this relationship feel compelled to do things that they would not otherwise agree to. (Federwisch, 2006, p. 2)
In addition to all else, the financial manager has the ongoing duty to be aware of and abide by all laws that would impact any of the transactions that are handled in his or her capacity as financial manager, regardless of the location.
Thus, it would appear that to meet the ethical responsibilities as a financial manager is a tall order under the best of circumstances. Therefore, when considering taking on the responsibilities that come with such a position it would require considerable thought and reflection.
- Anonymous. (2013). Eli Lilly & Company: The Red Book; Code of Ethical Conduct for Financial Management. (p. 1) Retrieved from http://www.lilly.com/about/business-practices/ethics-compliance/code-of-conduct/Pages/code-of-conduct-financial-management.aspx, September 5, 2013.
- Cosgrove-Sacks, C. & Dembinski, P. (2012). Globethics.net; Trust and Ethics in Finance Innovative ideas from the Robin Cosgrove Prize. (pp. 319-322). Retrieved from http://www.globethics.net/c/document_library/get_file?uuid=2ae8b194-cd34-4bef-8288- 4f1765ac132c&groupId=4289936, September 6, 2013.
- Federwisch, A. (2006). Santa Clara University; Markkula Center for Applied Ethics: Ethical Issues in the Financial Services Industry. (p. 2). Retrieved from http://www.scu.edu/ethics/practicing/focusareas/business/financial-services.html, September 6, 2013.
