Managers have an ethical duty to serve stockholders. It means they should optimize
stockholders' worth while reducing risk. However, managers' limits of ethics when risking other
people's money rely on the venture's type, size, and risk.
Managers should observe ethical limits and requirements when risking people's money.
They should not commit crimes or break ethics (Disparte, 2017). Avoiding illegal conduct like
secret trading and any behavior that could hurt stockholders or the company's image is part of
this. For instance, they should avoid conflicts of interest that could jeopardize their ability to
serve the firm and its stockholders. (For Ethic’s dissertation, get help from
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Managers should have a suitable risk management method to defend the interest of
stockholders. It involves setting up suitable risk management policies and procedures, informing
the board of directors about the company's risks, and routinely assessing and revising the risk
management system to reflect business climate changes (Disparte, 2017). Balance the company's
risk-taking with the need to reduce costs.
Managers should consider shareholder interests when risking other people's money.
While stockholders are the main benefactors of a company's success, managers should ethically
consider the interests of other constituents like workers, consumers, and the community
(Disparte, 2017). For instance, managers should avoid risks that could hurt jobs or the
ecosystem.
Managers should have an open reporting method to tell stockholders. Financial records
should be precise, complete, and open. Managers should also inform stockholders of the risks
connected with their assets and how they may affect the company's success (MEJIA, 2021).

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Managers should avoid risking other people's money. Risks are part of buying but should be
sensible and warranted (MEJIA, 2021). This includes completing detailed due research before
investing, analyzing the investment's risks and rewards, and closely watching the investment to
ensure it works as expected.
In financial management, ethics is about protecting and preserving the interests of
stakeholders. Eli Lilly and Company's code of ethics covers the obligations towards
management, employees, partners in business, shareholders, and public. Codes of ethics for
finance typically include the following:
 Honesty and Integrity are important.
 Avoid conflict of interests in your professional relationships. Avoid the appearance of
conflicts.
 Information that is accurate, objective and understandable should be provided to the
public. Disclosure of all information is important, both positive and negative. This will
give your audience a true picture.
 Respect all the rules and regulations that govern your job and company.
 Be honest and use your independent judgement. Do not let self-interest, or any other
factor influence your recommendation.
 Do not share or misuse confidential information.
 Keep an internal control system in place to prevent unethical conduct.
 Anyone who violates the code should be reported.
The code should not be interpreted as limiting the ethical conduct of financial managers:
Just check all the boxes and you are good. Ethics in finance is about doing what's right, even

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when the situation doesn't fit the code. When in doubt, seek out someone who can give you
advice on ethics.
Conflict of Interest
Fiduciary duties are at the core of financial management ethics. The managers must
always act in their client's and employer's best interests, rather than their own. You must always
side with your client if there is a potential conflict of interests.
Bernie Madoff was a good example. He served both as a broker and custodian of his
client's money. Due to the fact that he was simultaneously a broker and a custodian, an
independent audit of his business operations could not be performed. This made it much easier
for him to cheat his clients out of millions.
It is important to have internal controls in place. Stealing is less appealing when the
exposure risk is high.
Security and Information
The 21st-century networked world requires that you be ethical in the way you manage
and protect information. For example, the security breach at Equifax, a credit bureau in America,
could have compromised confidential personal and credit data of 143,000,000 Americans. The
Strategic CFO suggests that an ethical code could have resulted in better data protection and
transparency following the security breach.
Financial Ethics and Reputation
Ethics in financial management also serves to protect your reputation and that of your
employer. You're safe if you behave ethically. If you cross the line, it can ruin your reputation as
well as that of your business.

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In the past, some regulators and legislators believed that scandal and reputational damage
were enough to deter financial managers from behaving unethically. Financial mismanagement
has been repeated in 21st-century cases, and the biggest finance companies have managed to
avoid a crisis without losing business.
Some analysts in the industry say that tighter regulations are needed because finance
ethics can't resist temptation.
Ethics in Finance and Rewards Rewards
A problem of adhering to an ethical code in finance is the fact that it can sometimes
reward unethical behaviour. Some financial managers may stumble if an organization rewards
their financial managers when they make decisions which benefit the business and not clients.
Wells Fargo was in hot water when employees opened accounts for sales without the
customers' consent. Misselling customers in the banking sector is considered a major ethical
breach. Some people will not resist a rewards program that prioritizes goals over ethics. https://phddissertationhelp.org/