Ethical Misconduct in FINANCE

After reading this article, you will come to know about an unethical practices in finance and investment decisions.

Talking about money, excessive greed, aggression, acquisitiveness and lack of concern for those affected seems to be characteristics increasingly in evidence in financial dealings.

The unethical practices done in accounting are more in proprietary, partnership, and usually found in private limited companies.
Scope of this is very few in public limited companies and MNC's.

Unethical practices in financing and according are as under:-

* Wages are delayed, interest to financiers, incentive, bonus to employees.
* Purposely holding up bills of vendors on silly reason and ultimately buying from others to avoid payment to earlier vendors.
* Opening different current bank accounts to avoid adjustments against loans by earlier banker.
* Cheating employees about their dues towards medical expenses, and other incentives like leave travel assistance, children education fees etc.
* Quick payments are firstly done to known or adjustment parties and delaying payment to others.

Unethical decisions done in investment decisions:-

We know that business and industries they do need money. Now the need or requirement of funds may be long term, medium term and short term.
Public is miss lead by catchy advertisement which draw a bright picture for investment in undeserving companies.

There have been several financial scandals for decades like Enron, World com, AIG and Wells Fargo.
Hence, ethical behavior is so important because finance involves the management of other people's capital.