TheChallenges of Financial ManagersChrisCochranBusiness401Dr.DeloachJanuary22, 2018 TheChallenges of Financial ManagersWhen itcomes to business, ethics should be imbibed into every aspect. Thevalue system followed by a company is basedon trust and equality. The Rights of the stakeholders’ including employeesshould be well protected.
The labor policies of a firm should be clear andtransparent. There should not be bias and discrimination of any kind. Ethicsare important in every dealing and transaction of a firm. A firm’sresponsibility towards its customers should bevery high. The customer’s rights are a high priority when involving products.
Theconsiderations that should be taken into account are the fairness of price, compliancewith regulations, safe usage, and high quality are among the top considerations.Challengeof Maintaining Financial IntegrityEthics is an essential element in finance, and it makes it essential to maintain highlevels of transparency in the processes of the business as well as discloseaccurate financial information to all of the stakeholdersthrough annual reports and other reports. The principle of rights and duties,states that maximum welfare is not the basis of decision making (Gitman, 2008).It states that the basis of any decision should be the duty of an individual towards all those who would be impacted by thedecisions as well as the rights of individualsthat have to be protected.
When a company makes a decision, that decision may be rightor wrong but should never violate the rights of a person. The protection of therights of a person is the basis of the American economy. The integrityof the regulator is the basic element to achieve the trust and commitment ofthe public to the government leadership (.OtherChallenges Faced by Financial ManagementA strategic plan refersto a long-term plan of a firm rangingover a period longer than five years. In a joint stock company, theshareholders are the real owners as they investin the firm and take a substantial risk.Creditors, employees and the society at large have vital interests or stakes involved in operating with a company. In return, it becomes the moral duty of a companyto safeguard their interests, especially in the process of strategic financialplanning.
This process is alsoknown as corporate governance. Corporate governance refers to the policies andprocedures adopted by a company, affectingits administration and interests ofvarious stakeholders. Corporate governance policies are framed after considering various premise including the goalsand strategic objectives of a company including its financial goals andshareholder’s interests (Debby Thorne McAlister, Linda Ferrell, 2002).
As injoint stock companies, the ownership separate from management it becomesessential to establish controls and increase accountability. Corporategovernance helps achieve this objective through well-establishedprocedures including accounting and reporting mechanisms.Corporate governancedeals with policies on maintaining ethics and values.
It is crucial that shareholders and other stakeholders get the informationrequired quickly. The protection of the wealth of shareholders’ is entrusted tothe management. They should take decisions on dividend policy, deployment offunds, choice of projects and other issues after considering the interests ofstakeholders (Gitman, 2008).
Apart from these, acompany should also consider the social responsibility aspects, relevant to the environment. This includes community development and environmental protection. An excellent example of a company followingwell organized corporate governance policy is one of the least likely companiesyou would think of, Nike Inc. Nike has acorporate governance committee which reviews and rates corporate governance policies in Nike imbibing ethics and social responsibility into strategic planningis therefore very essential in a corporate arena to earn and maintain the confidence of its shareholders, creditors,employees and other stakeholders. ReferencesGitman,(2008). Ethics Considerations in Financial Management.
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