ETHICS IN FINANCE, EXAMPLES, ROLE,UNETHICAL PROBLEMS, HARSHAD MEHTA SCAM, SATYAM COMPUTER SERVICE SCANDAL,

1. Anshu Sharma
Archi Jain
Prerna Agarwal
Ishika Jain
Vadhi Kagdiyal

2. Ethics in finance is the set of standards that
professionals must hold themselves to as they
conduct their business in order to maintain a
sense of trust and confidence with their
clients, colleagues, and the public. Example -
clear and concise reporting of company.

3. The principles of integrity, fairness,
impartiality, and accountability are
integral to providing financial services
and information. These ethical
guidelines influence accountants' daily
activities, molding their professional
choices and conduct.

4. Fraud
A fraud is a dishonest act by an employee that result in
personal benefit to the employee at a cost to the employer
example = a bookkeeper in small company diverted $ 750,000
of bill payments to a personal bank account over a three year
period .
Misleading financial statement
Before investing money investor want to known the
company’s financial position and performance . They want to
see the balance sheet and income statement. So financial
companies sometimes intentionally prepare false financial
statement to improve their chances of getting invested.
Insider Trading
A trading of corporation’s stock or other securities by
individual with access to non-public information about the
company the company it is unfair would destroy the security
markets by destroying investor confidence

5.  Holding up bills of vendors on silly reasons
and ultimately buying from others to avoid
payments to earlier vendors.
 Delay in paying wages, interest to financiers,
incentives, bonus to employees
 Cheating employees of their dues towards
medical expenses, leave travel assistance,
children education fees etc…

6. Harshad mehta was an Indian stock broker .
On April 23, 1992, journalist Sucheta Dalal
exposed Mehta's illegal methods in a column
in The Times of India. Mehta was dipping
illegally into the banking system to finance
his buying.

7.  Satyam computer services was a corporate
scandal that occurred in India in 2009 where
Chairman Ramalinga Raju confessed that the
company's accounts had been falsified. CID
told in court that the actual number of
employees is only 40,000 and not 53,000 as
reported earlier and that Mr. Raju had been
withdrawing 20 crore (US$4 million) every
month for paying these13,000 non-existent
employees.

8. Emphasis on short
termgains
Lack of Regulation
Inadequate Corporate
Governance
Greed

9. Employee
Morale
and
Turnover
Erosion of Trust LegalConsquences FinancialLosses

10. * Compliance with Laws and Regulations
* Independent audit
* Full and Accurate Information
* Adherence to a Code of Ethics
* Promotion of Ethical Behavior

11. According to Henry Ford, “A business that
makes nothing but money is a poor business”.
Upholding ethical principles not only builds
trust and transparency but also attracts
investors and ensures long-term sustainability.
In a world where financial practices are under
constant scrutiny, embracing ethics in finance
is not just a choice but a necessity.