Meaning of Ethics
Ethics is a system of moral principles. They affect how people make decisions and lead their lives.Ethics is concerned with what is good for individuals and society and is also described as moral philosophy.The term is derived from the Greek word ethos which can mean custom, habit, character or disposition.
Meaning of Finance
Finance is defined as the management of money and includes activities like investing, borrowing, lending, budgeting, saving, and forecasting. There are three main types of finance: (1) personal (2) corporate and (3) public/government.
Ethical and Unethical issues in Finance:
1. Deliberate abnormal delays in payments to:
- Vendors
- Dealers Commissions
- Promotion costs
2. Delays in paying:
- Wages
- Interest to financiers
- Incentives
- Bonus to Employees
3. Holding up bills of vendors on silly reasons and ultimately buying from others to avoid payment to earlier vendors.
4. Not prompt in statutory payments of:
- ESI
- PF
- Sales Tax
- Excise Duties
5. Cheating employees of their dues towards:
- Medical Expenses
- Leave travel assisstance
- Children education fees etc.
6. Creating bogus bills of purchase to show higher costs and hence losses to avoid bonus payment to employees.
7. Collecting loans from private financiers at higher rate of interest to help kith and kin and to get kick-backs.
8. Quick release of payments to known or adjustment parties and delaying payment to others.
9. Opening of current accounts in different banks to avoid adjustments against loans by earlier banker.
Perfectly described 👍🏻
ReplyDeleteInteresting points 👍
ReplyDeleteContent is very helpful
ReplyDeletecan u explain the 6th point of bills.
ReplyDeleteIt means a company shows a false statement of purchases like there is high investment on asset so that they gave less bonus to an employee.
DeleteShows the fraud statement that there's a less revenue of a company.
DeleteWill you please explain 8 no point?
Deletelike there are so many vendors which are known and familiar with you but some are unknowns or not much important to you. So sometimes you gave early payment to your knowns and later to others.
Deleteby just showing the cheques or bills.
Really appreciable work, you did a great job.
ReplyDeleteCan unethical practices in finance can lead to poor performance of business?
ReplyDeleteif they doing the unethical practices in finance, they are endulging in criminal activities. once they caught in these activities, it may result in bad reputation and their performance will be low
Deletewhat if they delay in wages?
ReplyDeleteAs we know, the wages of workers are average in which they survive. So, if they not get the wages on time, they want to work on some other organisation
DeleteDelay in wages that is very unethical .
ReplyDeleteYes, it is major unethical issue of finance
ReplyDeleteWhat if they cheat their employees of their dues?
ReplyDeleteThey loss the trust from employees. So, the employees may prefer another job and may they are not more loyal to their company.
Delete