A condensed version perfect for Finance 301. A look at the importance of Ethics in finance and a short look at Socially Responsible Investing as well as impact investing.
This is from my path I used for upper level classes, but it is equally true here:
Business, indeed life, is built on relationships. Consider the Nexus of contracts. An organization is in many ways just a interwoven web of contracts and relationships between various stakeholders: employees, customers, suppliers, and investors.
The best I can sum up ethics is to do what you say you will. Be fair. Increase transparency. If these relationships are not build on trust, the lack of trust will lead to higher transaction costs, lower revenue, and higher costs. Put another way, your reputation is one of, if not the, biggest assets you have. That reputation can be lost in a matter of seconds. Indeed, ethical breakdowns can be one of the largest risk factors firms have. Don't believe me? Look at Enron, Adelphia, and many many many other firms that were destroyed by a lack of ethics.
Act ethically. My biggest piece of advice to you.
Create systems that don't lead to temptation.
If you find a problem, tell people about it.
Protect your reputation.
Look out for everyone. It will not only help you, but also your shareholders.Edit Remove Move
R. Edward Freeman of the Darden School of Business at the University of Virginia gives insights into "Stakeholder Theory". This video is part of the Masters Seminars in Business Ethics video series. The series features thought leaders in business ethics addressing topics in their particular fields of expertise, including their approach to teaching business ethics.Edit Remove Move
Many people may not have considered the effect of ethics on business until the fall of Enron in 2001 and 2002, but every finance manager must be cognizant of ethics on a daily basis. Before you can ...Edit Remove Move
Companies with a strong ethical identity tend to maintain a higher degree of stakeholder satisfaction, positively influencing the financial results of the company, according to the Ethical Investment Research Service. Conversely, lack of personal and professional ethics can lead to negative financial results, as recently evidenced by the collapse of Wall Street firms. Risky loans and questionable business practices put many banking and insurance firms in a precarious position.Edit Remove Move
Learn the power that values-based leadership can have on your business! Having a commitment to "High Road" Behavior means understanding the key role of trust for effective leadership and for maintaining uninterrupted growth and profitability. http://www.frankbucaro.com/Edit Remove Move
Nic Marks is the founding director of Happiness Works, a company that focuses on science-based, responsive analytics to unlock new ways to happiness and productivity within the workplace. Marks is also a fellow of the UK think-tank, the new economics foundation (nef) and a board member of Action for Happiness.Edit Remove Move
Our founder, Herb Kelleher, is famous for saying that "the Business of Business is People." He recognized that - more than advertising, more than low fares - it would be our Employees that would be the key to our success, because they would be key to building positive relationships with our Customers.Edit Remove Move
Great Speech by Stew Leonard Jr. on the importance of good customer serviceEdit Remove Move
Impact investing could unlock substantial for-profit investment capital to complement philanthropy in addressing pressing social challenges.Edit Remove Move
Socially responsible investing incorporates environmental, social and corporate governance considerations while seeking competitive financial returns. This video provides a straightforward answer to "What is socially responsible investing" as well as provides three real life examples of how socially responsible investing can make a difference on important issues while growing your investments.Edit Remove Move
"...investors have a role to play in aligning their investments with the kind of future they'd like to see." Alexis Cheang, Director, Governance and Sustainable Investment at F&C Investments speaks to London Business School about whether ethical investment can ever be mainstream.Edit Remove Move
For More Daily Inspiration & Motivation Go to http://mycomeup.com/ is the number one web platform to find inspiration and network with like-minded individuals.Edit Remove Move