FIN301 week 2 assignment

docx

School

University Of Arizona *

*We aren’t endorsed by this school

Course

301

Subject

Finance

Date

Feb 20, 2024

Type

docx

Pages

Uploaded by MasterMoonRam38

The Case Study: Voicing Your Values Jasmine Gallagher University of Arizona Global Campus FIN 301: Ethics for the Finance Professional Instructor: Susan Gould January 22, 2023

Introduction There are various ethical issues that arise in the financial industry. This particular ethical issue is about a trader named Pat who is under the influence and the decision to raise the issue further or not is in question. Pat is a very successful trader who has earned the firm a large sum of revenue and is respected by senior management. This could pose as it could affect the outcome of whether or not the issue would be taken seriously or not. This paper aims to look at how we can voice our values, define the primary ethical dilemma, how diversity plays a role, identify the affected parties and their rights, the consequences of my decision, defend the character and integrity, and alternative action. Voicing your values helps you learn how to effectively act on your values and ethical principles in the context of your professional responsibilities. Do you raise the issue further? Deciding whether to take this issue further is a question that should be taken into careful consideration. There are many factors that come into play when making this decision. Asking the questions on what kind of consequences could happen, or will this be beneficial for the majority is very important. “As professionals, auditors we have a responsibility to act in the public interest to provide objective opinions about the financial state of the organization—be free of conflicts of interest, not misrepresent facts, or subordinate professional judgment to others” (Trevino & Nelson, 2021). Pat’s judgment is likely impaired due to the drug use, which could cause potential conflict to the firm’s reputation and clients. The issue should be reported to the appropriate authority for further review.

How can you voice your values in this case? It is important to uphold our values and principles. When it comes to Pat’s behavior I could confront him and address my concerns about his well-being and the potential impacts it may have on him and the firm. If the matter is not resolved I can then go to Steve who is Pat’s managing director and highlight the potential risks to the firm's reputation and stability. If the issue continues, evidence will need to be gathered showing that Pat is actively using drugs and that it is impairing his work. Once the evidence is gathered I could go to HR and inform them of Pat’s behavior. My goal is to address the issue responsibly and ethically, ensuring the well-being of all involved and the long-term success of the firm. Define the primary ethical dilemma for the international organization or U.S. business or financial sector. The primary ethical dilemma is whether to report Pat’s drug use or not.. Pat’s use of cocaine could potentially have serious consequences for both him and the organization. “Employers bear a significant cost of substance abuse, including higher absenteeism rates and lower productivity” (United Nations Office on Drugs and Crime, and World Health Organization, 2018). This dilemma could be seen as an issue with following working standards and conditions, and protecting the interest of the company. The organization has a duty of care for the health, safety and well-being of its staff, contractors and the population in the areas in which it operates. The organization also has the responsibility towards the shareholders or the owners who have invested money and that they receive a fair return on the money they have invested.

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

Discuss how diversity plays a role in the ethical dilemma and its potential impact on the decision-making process and outcome for different stakeholders. A workplace that fosters diversity brings together a multitude of ideas and perspectives, igniting innovation and creativity. Having a diverse team could help if there was someone who also had struggled with substance abuse and maybe able to help Pat better his behavior. These individuals could possibly provide valuable insights into the potential consequences of Pat's behavior, such as “decreased productivity, increased absenteeism, and potential legal liabilities for the firm” (National Safety Council, n.d.). A diverse team may include individuals who represent the interests of stakeholders such as employees, customers, and regulators. Identify the affected parties (i.e., the stakeholders) in the case and the important rights of each. There are various stakeholders that are affected by Pat’s drug use that all have rights. While Pat is the source of the dilemma, he still has a right to privacy. Steve, Bob and I as well as the rest of the staff have the right to a safe workplace. We collectively also have the right to voice our concerns as to how Pat’s behavior may impact the firm. Customers may also be affected who also have rights like being informed, and being protected against fraudulent, deceitful, or grossly misleading information, advertising, labeling, or other practices, and to be given the facts needed to make informed decisions. Pat being under the influence could potentially harm the customers if he is unable to provide them adequate service violating their rights.

Identify the consequences of your decision and the obligations of your analysis. With the decision to raise the issue further could come with some consequences. On the positive side, “addressing the issue of drugs can help to create a safer and more productive work environment for all employees” (National Safety Counseling, n.d.). By raising the issue further it is more than likely that Pat will get upset and there could be hostility which could lead to a hostile work environment. I could end up losing my job as the firm may not have liked that I was bringing forth information on their best trader. There is also a chance that nothing is done and the firm ends up failing. While reporting an issue can be nerve racking, it is imperative that issues be handled in an ethical and responsible manner. Defend the character and integrity of your analysis and decision. Pat may be bringing in a substantial amount of money for the firm, however that does not mean his behavior should go unnoticed. “ Upholding investor confidence is vital to the success of the investment industry. High ethical standards are critical to maintaining the public’s trust in financial markets and in the investment profession”(The Economic Times, 2019). Pat's use of cocaine and noticeable signs of drug use raise concerns about his ability to make sound and rational decisions in a fast-paced and high-stakes trading environment. Not only is Pat putting himself at risk to get in a lot of trouble, he is also putting the firm in a position that could cause major damage to their reputation with the investors and clients. The best way to protect the company and employees will be to raise the issue further.

Describe alternative courses of action and the likely consequences of each proposed action for each stakeholder. If Pat’s behavior was not addressed the firm and others could suffer some severe consequences. The firm’s reputation could be tarnished which may lead to the closing of the firm leaving all the employees without a job. If I were to address Pat privately there could be some hostility harbored. This could cause there to be a hostile or even unsafe work environment. Either course of action will lead to some type of consequence for the stakeholders involved. Explain what you personally think is the right course of action in the case and the basis of your recommendation. I think the issue should be raised further. Addressing the issue provides the best outcome for all stakeholders with the least amount of consequences. I must “act in a manner that benefits not only the bottom line, but also in a way that benefits society” (Ganti, 2023). The firm will be able to protect its reputation as well as continue to provide jobs for all its employees. If Pat’s behavior is not reported, the firm may be at risk for liability and potential harm to all stakeholders involved. Conclusion By voicing my values it helped me learn how to effectively act on my values and ethical principles in the context of my professional responsibilities. Raising Pat’s behavior further was based on the information gathered and what was best for all stakeholders. Making ethical decisions is not always easy especially when there are so many things to take into account.

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

Ultimately, upholding the standards and the rights of the stakeholders involved are vital in making these ethical decisions. While the issue of Pat’s behavior may not be handled the way it should be, at least I can say that I upheld my values and principles to make an ethical decision. References: Ganti, A. (2021). Social Responsibility. Investopedia. https://www.investopedia.com/terms/s/socialresponsibility.asp National Safety Council. (n.d.).Implications of Drug Use for Employers. https://www.nsc.org/workplace/safety-topics/drugs-at-work/implications-of-drug-use-for- employers ? The Economic Times, (2019, April 1). Why are Ethics Important in Finance. https://economictimes.indiatimes.com/markets/why-are-ethics-important-in-the-finance- industry/articleshow/68664665.cms Treviño, L. K., & Nelson, K. A. (2021). Managing business ethics: Straight talk about how to do it right (8th ed.). Wiley. United Nations Office on Drugs and Crime & World Health Organization. (2018). International

Standards for the Treatment of Drug Use Disorders. International Standards on Drug Use Prevention