Financial Management Challenges and Ethics
Name
BUS 401 - Principles of Finance
Instructor:
, 2017








Financial Management Challenges and Ethics
No matter the type of business or where they are located, all businesses have a commonality of keeping financial integrity and they all have competition. Both, financial integrity and competition, can have managers pulling out their hair and giving even the best managers hard choices to make. Both of these challenges have their own set of rules and managers must be aware of both at all times.
What is financial integrity? "Often, integrity is equated to honesty and trustworthiness" ( Duska , 2005). Duska (2005) also goes to say:
The ancient philosophers talked often about the unity (integrity?) of the virtues. Virtues for them meant good habits, and there were four that they indicated were necessary for the wholeness required of the person of integrity': prudence, self-control, courage, and justice.
Financial integrity is merely being honest in all financial dealings. When managers use the words financial integrity, most of the time they are talking about simple things like making sure all the reporting is correct, making sure everything is consistent, that the reports are completed and that they are accurate. There are certain things managers need to make sure they are doing each and every time. They need to make sure the balance sheet is completely in balance without "fudging" numbers. They need to look at the cash verses the cash flow to make sure everything is balancing properly and that the numbers are acceptable based on true facts.
Managers have to keep the financial integrity of a company. They are the face of their department. If a manager is to lose sight of their integrity and let greed for personal gain or for sales and profit, they could face legal ramifications in the future. Look at Enron, AIG, WorldCom and Health South ( Duska , 2005). All these companies lost sight of their financial integrity and let their greed overshadow their ethical stance. Reputation is everything in the marketplace and if it is known that a company acts unethically, they could lose business, affecting their sales and possibly putting them out of business. A financial manager who has financial integrity always does the honest and ethical thing when it comes to busi ness deals, record keeping and many other areas of their work and how they treat other people . According to Anton Jamnik (2011), "Whether they be engaged in planning, organizing, motivating, communicating, or some other management role, they face the fact that matters of right and wrong, fairness and unfairness, and justice or lack of justice creep into their decisions, actions, or behaviors."
As any good financial manager is aware, there is always competition in the marketplace. It is a struggle to maintain integrity when going up against a competitor who doesn't use the same ethics and integrity. Competition is good but becomes a challenge because of how much it can affect the bottom line of a company. If a competitor is ahead, then they will be taking in the money that would have normally gone to your company. Financially, that can kill a business. In those instances, managers that are not completely ethical in their financial dealings, will resort to moving money or fudging numbers to make it look better for top management and stockholders.
Business ethics are a necessity in our society. They make the world go around in much smoother and more peaceful way. Business ethics show your professionalism, integrity, accountability and good judgement skills and all of those things will boost your reputation. This in turn will create a better value for the company.


Re ferences
Duska , R. F. (2005). A LOOK AT INTEGRITY IN FINANCIAL SERVICES.  Journal o f Financial Service Professionals ,  59 (5), 26-28.
Jamnik , A. (2011). The Challenges of Business Ethics--Management and the Question of Ethics. Tourism and Hospitality Management , May 2011, v. 17, iss . 1 pp. 141-52. R etrieved from http://eds.a.ebscohost.com.proxy-library.ashford.edu