FINANCE ETHICS

FINANCE ETHICS

Business ethics are the moral principles that guide people’s behavior in a business environment, while personal ethics determines what people believe is right and wrong. Both personal and corporate ethics are essential in a business environment because they enable an employee to differentiate between good and bad decisions. Ethics are usually both written and unwritten. The organization’s culture determines the ethics practiced in a company because the culture governs decisions and actions in the organization. Corporate ethics should govern both a person and the company. I believe that corporate ethics also determine how an employee also carries themselves outside the organization. Forinstance, some companies do not expect you to carry in a manner that would tarnish their name. More specifically, when wearing their uniform. I believe this is quite appropriate because the employees are the image of the company ad should behave in the best interest of the company they work for. Ethics contributes highly to the performance of the company. They guide employees on they should deal with customers. Ethics also governs their performances. One who respects the ethical codes should be awarded to serve as a motivation to other employees.

I think it is unethical for dealers to misguide buyers to enter into contracts that will involve taking advantage of the vulnerability of a buyer. According to agency law, an agent should act in the best interest of the owner. This should be the case of a dealer and a buyer; a dealer should act in the best interest of a buyer. Inflating borrowers’ income on loan applications to sell them more expensive cars very unethical for them. The dealers should, therefore, guide a buyer into purchasing a vehicle that they can afford considering their incomes. Dealers should not watch borrowers or lenders suffer from a loan one bad but should instead advise them appropriately to avoid that..

References

Andriotis, A. M. &Eisen, B. (2020). Dealership Give Car Buyers some Advice: Stop paying Paying Your Loans. Retrieved from https://www.msn.com/en-us/money/personalfinance/dealerships-give-car-buyers-some-advice-just-stop-paying-your-loan/ar-BB102JDd

Lumen. (n.d). Business Ethics. retrieved from https://courses.lumenlearning.com/boundless-business/chapter/business-ethics/