27 Aug 2022

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Financial Manager Ethics: What You Need to Know

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Academic level: College

Paper type: Coursework

Words: 325

Pages: 1

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A financial manager is the person in charge of the financial well-being of the company. He or she produces financial publications and reports, conducts investment operations and formulate strategies for the long-term achievement of the company’s goals and objectives. The responsibility of a financial manager, specifically in a business, is changing with respect to advances in technology that has now enabled productive of reports more effective and time saving. The ethics of any financial manager must be above the set standards. This comprises of more than only conducting themselves in a above-board and honest manner (Gallup, 2015) . It implies developing boundaries that will curtail personal as well as professional interests from conflicting with those of the business or employer. The manager should offer competent, timely, precise and accurate information that presents any issues that can lead to disclosure like legal issues. 

The financial manager is ethically mandated to protect the confidentiality of the business or employer as well as operating in accordance with the law (Gallup, 2015) . A financial manager must strive to achieve above approach integrity. Shareholders, employers and the customers must be able trust every word the manager says. The manager must prevent bias, conflicts of interests and prejudice from influencing their actions (Basu, 2019) . The specific structure of some stock-based compensation plans can also lead to ethical issues for the manager. 

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According to (Basu, 2019) , accuracy is another ethical issue for financial managers. The financial manager in a company ascertains that each and every financial reports accurately reflects the current financial state of the firm. Financial fraud and errors in accounting damages the trust of employers and shareholders, thus affecting their confidence in then organizations system. Transparency is also an ethical issue for the managers, the financial reports and publications projects the performance of the company with respect to other peers in the market as well as the company’s internal weakness and strengths (Basu, 2019) . It implies elaborating every financial detail vividly for those who need to know how the operations are going in the firm. The manager should not obscure, render or even hide relevant information from the shareholders and employer 

References 

Basu, C. (2019). Ethical Issues Facing Financial Managers. Business Accounting , 23-30. 

Gallup, B. (2015). Businees Ethics for a Finance Manager. Human Resources , 23. 

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StudyBounty. (2023, September 15). Financial Manager Ethics: What You Need to Know.
https://studybounty.com/financial-manager-ethics-what-you-need-to-know-coursework

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