What do the verses listed above suggest about the likelihood of these conflicts?
The listed verses suggest that the above actions are born out of human greed, these conflicts of interests are often because of selfish ambition, jealousy as written in Galatians 5:19-20. The impurity at heart to be selfish enough to take what is not rightfully ours makes such conflicts exists. Especially in the financial industry, it is not uncommon to get the stockbrokers or investment advisers telling their customers to invest in certain financial platforms. These agents often have vested interest in those financial platforms or will make them have financial gain as investment advisors or stock brokers (Besley, S., & Brigham,2008).
What is the ultimate source of the conflict? In other words, what causes individuals to act in a manner that is not in the best interest of the principal?
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Monetary incentives in form of gains always make them betray the trust of the principals. The need to gain easy financial profits by misdirecting the principals to invest in certain given financial sectors that are beneficial to these agents, brokers and advisors will always make them have a biased opinion on investment plans. As long as they stand to gain more from such business undertakings. Just as quoted on this verse Genesis 6:5. All human beings have ambitions that are only beneficial to them and often they do bad things to fulfill them whatever is needed to achievement sinful or worse (Besley, S., & Brigham,2008).
From a financial perspective, what safeguards could be put in place to protect the principal?
Learn a thing or two about investment platforms you are putting your money into, try and get to understand the inner workings of the stock exchange system. Conduct a research on current trends in the financial investment and profit making gains. Talk to a business analyst and get varied opinions before making investment decisions (Hillier et al.,2014). Try and know the affiliations the middlemen have with the financial investment you are about to purchase. Understand your goals and the benefits that come with the investments you undertake. Use intuitions and trusted advisors whom you know will not always put their interest first above yours.
When a principal is harmed, what recourse should be taken? What is a Christ-like response to these situations?
Forgive the wrong doings as Christ would have done, to forgive is human and try to seek for a recourse to ensure no one else is going to be a victim of these crooked financial investment traders who prey on investors that do not expect to be harmed. Try and seek justice as stipulated by the law and avoid to deal with such individuals again.
In conclusion, it is not good to always pout personal interest above everyone else’s. Do to others what you would like to be done to you. Financial gain is often a lucrative undertaking; however, greed is the result of wanting what one never worked for. The corrupt vices of the key facilitators in the financial industry are what causes a conflict of interest and make them harm the principals.
Hillier, D., Clacher, I., Ross, S., Westerfield, R., & Jordan, B. (2014). Fundamentals of Corporate Finance . (2nd European Edition ed.) Maidenhead
Besley, S., & Brigham, E. F. (2008). Essentials of managerial finance. Thomson South-Western.