Module 5 Discussion
Financial executives insist that there should be no
separation between an individual’s personal ethics and his or her business
ethics. “It’s a jungle out there” and “business is
business” should not be excuses for engaging in unethical behavior. Many
firms have ethics codes which are based on economically rational concepts such
as integrity and trustworthiness, which guide the decision maker in attempting
to increase shareholder wealth. Of course, some employees sometimes choose to
not comply with their firm’s ethics code.
How do ethics codes apply to project selection and capital
budgeting? What are the potential risks to a company of unethical behaviors by
employees? What are potential risks to the public and to stakeholders? Please
explain how Saint Leo’s core value of integrity is reflected in your answer.
