busn602 discussion response 2
I need four responses of at least 150 words each for the below students discussions for this week. Also in the bold below are the questions the students at answering.
Modern financial theory includes the sixth principle of finance, which is reputation matters. The unethical behavior of corporate leaders has been well documented and publicized in previous years. On the positive side, there are ethical leaders. In 300 content words, describe the actions of an ethical corporate leader. Provide an example of someone who exhibits these qualities.
In reading the text, it was pointed out that an ethical leader that is able to show traits that society deems can be viewed as being acceptable. In dealing with finance the sixth principle based on finance is that reputation matters. When ethics is looked upon when it comes to corporate leaders, many leaders should make sure that he or she takes on the responsibility if it deemed to be good or bad. Leaders are posse ethics are viewed as being role models to others, due to the concept that he or she is always communicating why ethical standards should be followed within the work place. An ethical leader should always be respectable to all employees mainly by being attentive to their needs and listening to any viewpoints they may want to share about the company. An ethical leader always wants to do what is right through their beliefs.
It is important to know that an ethical leader presents characteristics such as justice, honesty, respect to others, place much focus on team building for the corporation, a good decision-maker, loves to encourage others, being humane and not all about being engage in violating the rules of ethics.
My example of a leader based on modern finance theory is Warren Buffett. Warren Buffett was a corporate business person that always has taken risks in dealing with business deals with so many companies. He is a wealthy investor of Corporate America with his saying â€œdonâ€™t put all your eggs in one basketâ€ meaning that the risk that is left over is the only risk in which investors will be compensated (Bary, 2015). His philosophy was always based on the outcome of his business performance according to the flow of the market. Buffettâ€™s view in contrary to modern finance theory is that investment knitting should not be described in reference to diversification in the corporate world.
Bary, A. (2015). Warren Buffett. Barronâ€™s, S12. Retrieved from http://search.proquest.com/docview/1665202782/
Brealey, R. A., Myers, S. C. & Allen, F. (2011). Principles of Corporate Finance, Concise Edition, (2nd ed.). New York, NY: McGraw-Hill Irwin.
Cornett, Adair, & Nofsinger (2015). Finance Applications & Theory 3rd ed. New York, NY: McGraw-Hill Irwin
A companyâ€™s leadership style can significantly impact the success of a company. Having an unethical corporate leader sets the tone for the rest of the business. It can lead to poor employee performance, terrible employee relationships, and unpopular rating for the company. (Jones,2017) A common phrase comes to mind, â€œOne bad apple can spoil the bunchâ€. Well what if that bad apple is the corporate leader. The top person in the company is showing other managers what is acceptable to treat other employees like. It really can set a bad tone. Especially with so many of the working forces having resources like indeed.com and glassdoor.com that allow people to rate a company they work for and tell everything about the company to everyone. Angry people tend to have the spirit to write more reviews. Even a company that has a solid structure can cause failure based on the unethical leadership. A business is only as good as you allow and motivate your employees to be. Clearly, unhappy employees are not motivated to provide top performance work for the companies success.
On the other hand an ethical corporate leader, can really help a business grow from nothing to something. Having open communication with employees truly builds trust. Investing in getting to know your employees and understand the values and culture of the business can help guide people in the right way. (Schwantes, 2017) In 2007 Popeyes Louisiana Kitchen CEO, Cheryl Bachelder, took over a company that was struggling to meet restaurant sales and had negative profit trends. The company stocks went from $34 in 2002 to $13.(Schwantes, 2017) Bechelder managed to turn things around by changing the values and opening communication with the employees. She formed a team that listened to restaurant owner and met their request and needs. This changed the outlook on owning a franchise for this company. By 2014, the business saw a profit increase of 21% and a stock price over $40. (Schwantes, 2017) The simple act of invest time and listening to the franchise owners helped bring back the companies reputation. It shows in the numbers how an ethical leader can turn the business and create a profit by encouraging the employees.
Jones, M. B. (2017, January 18). 4 Signs That Unethical Leadership Could Be Negatively Impacting Company Success. In Portland Community College. Retrieved from http://climb.pcc.edu/blog/4-signs-that-unethical-l…
Schwantes, M. (2017, March 29). The World’s 10 Top CEOs. In Inc. Retrieved from https://www.inc.com/marcel-schwantes/heres-a-top-1…
The position of CEO is a balancing act. According to Satya Nadella, the most surprising realization upon ascending to the top spot was how much work there was balancing the needs of his 3 core partners. There is the customer; the final end-user of the product or service. There are the employees, those that rely on the business for their financial success and platonic satisfaction. Lastly, there are the owners, which in the event of a publically traded company are the shareholders. According to Nadella, every decision has to be made weighed against all three parties affected.
This completely lends itself to many leaders not being successful at this balance. If they favor the shareholder and ignore the customer, then the customer service suffers and they go out of business. I?d they favor the customer too much, they usually make poor business/financial decisions and the business goes belly-up. If they neglect the employees, then their talent will leave for greener pastures.
Garry Ridge has seen his share of success and failure in the 18 years he has been at the helm. His philosophy is that all business starts with the employees and team members. He wants people to enjoy coming to work and every day to leave work with ?lasting memories.? This engagement is contagious and helps to encourage other team members. It also spills over into the team members organically understanding the needs of the customer and having very open dialogue with how customers currently view the company.
The use of communication enables the leadership to constantly stay in contact with the staff (and also customers and shareholders). The absence of information from above naturally leads to assumption and rumors, which are almost always worse than the reality. During the 2008 recession, Garry had daily internal messaging to ensure that the people who looked up to him were
Brownlee, M. (2019, October 3). Retrieved from https://youtu.be/ux4R5GeKMUU .
Skibola, N. (2011, August 9). Leadership Lessons From WD-40’s CEO, Garry Ridge. Retrieved from https://www.forbes.com/sites/csr/2011/06/27/leadership-lessons-from-wd-40s-ceo-garry-ridge/#32fd7c521fae .
Proper business ethics and social responsibilities are indispensable in generating trust and uphold money matters to their true value, and an institutionâ€™s reputation. Our text tells us that the ethics must play a strong role in any practice of finance where professionals are trusted to handle and manage other peopleâ€™s money on numerous different levels. These relationships create tempting opportunities for finance professionals to make decisions that either benefit the client or benefit the advisors themselves. Professional associations (such as for treasurers, bank executives, investment professionals, etc.) place a strong emphasis on ethical behavior and provide ethics training and standards. Nevertheless, as with any profession with millions of practitioners, a few are bound to act unethically. (Cornett. 2014).
Nevertheless, ethics is clearly defined and involves learning what is right or wrong, and then doing the right thing — but “the right thing” is not nearly as straightforward as conveyed in a great deal of business ethics literature. (Web. 2019). The connection between reputation and ethics is complex. A pattern of ethical behavior is clearly essential to establishing a good reputation, which for a company means a reputation as the kind of company people want to do business with.â€ (MacDonald. 2011).
An article I found online outlined core ethical principles financial firms and their manages. According to Azman, â€œA strong culture of professionalism anchored on a set of core ethical principles will contribute towards a more resilient financial services industry. It enhances the overall reputation and public trust in the industryâ€¦ Organizations and individuals across the financial services industry shall continuously uphold and abide by the following ethical principles that are vital to the achievement of a high standard of professionalism and ethics across the industryâ€
1 Competence: is to know, understand, and maintain knowledge currency of the financial industry as well as work efficiently within such industry, 2 Integrity: financial institution and individuals within the financial services industry should maintain a level of trustworthiness and fairness and unbiassed with whom they conduct business with at all levels, 3 Fairness: is defined as treating others with impartiality and maintain level of professional relationship with the stakeholder. Fairness holds some characteristics of integrity and I believe both are codependent of each other. 4 Confidentiality: financial firms and individuals within the financial services industry should take all appropriate and required actions to adhere to privacy and the protection of sensitive data about their clients and of information provided to them. 5 Objectivity: Organizations should establish a mission and goal objective and ensure it is upheld by all employed parties in the interest of the all stakeholders.
In conclusion, the core ethical principles of financial institution and its handling of others money is essential to build and solidify good reputation. However, there are countless ethical issues surrounding financial institutions as their employees succumbed to temptations and make irrational financial decisions.
Azman, (2016). FSPB publishes code of ethics for financial services sector; The Code of Conduct. https://www.thestar.com.my/business/business-news/2016/01/06/fspb-publishes-code-of-ethics-for-financial-services-sector#mwPO2o0xK38KuOzx.99
Cornett, M. (2014). Finance: applications and theory. Place of publication not identified: Mcgraw Hill Higher Education.
MacDonald, C. Honesty, Reputation, and Ethics. https://businessethicsblog.com/2011/04/06/honesty-reputation-and-ethics
Phillips, C. Six Characteristics of an Ethical Business. (2/2019). https://smallbusiness.chron.com/six-characteristics-ethical-business-22401.html
Web. (11/2019). https://managementhelp.org/businessethics/index.htm Ethical Behavior