The challenges of Business Ethics–Management

Question: Discuss two of the biggest challenges facing financial managers today. One of the articles should be about the challenge of maintaining ethical financial integrity and the other article should be on any other challenge that a financial manager may face? Answer: Introduction Financial managers otherwise known as funding managers face many challenges in their working lives. Their basic and one of the greatest challenge is to find best possible ways to invest money, whether it is raising funds, allocation of resources, planning of profit, dealing in the capital market. However, the role of the financial manager in an organization is to deal with complex and business activity by utilizing the resources in an efficient and a stable manner. Hence, a financial manager is not free from the challenges that are there in the global environment, whether it is to maintain ethical integrity or to face the challenge from competition of emerging markets, government intervention, business, industry or not-for-profit sector. Two major challenges faced by Financial Managers First Challenge - Maintaining Ethical Financial Integrity Financial managers in an organization face ethical issues on a daily basis. The fundamental problem in ethics is to carry out leadership responsibilities. It is of no great substance, whether they are engaged in planning, organization, motivation, communication or fact carrying out any management role because they face the matters with the moral values of right and wrong. Though the ethical issues are grouped according to different levels, the conflicts are identified between managers and stakeholder groups like customers, employees, competitors, law, suppliers, government, wholesalers, and retailers. These conflicts give rise to many ethical challenges on discrimination, pricing practices, firings, honesty in communications, giving of kickbacks and gifts and executing contracts with investors (Tamny, 2011) The ethical issue also consists of immoral management that leads to vulnerable solutions in which amorality may reign such that managerial wisdom will be unmatched with ethical wisdom. According to a major report from The Conference Board, CEO has accounted for ethical issues given on equity, honesty, rights and corporate power exercised. However, all ethical managers virtually face a conflict of interest. The conflict mainly arises between the manager's ethics or values and that those of employees, employer or stakeholder group that interest the decision of the organization (Tamny, 2011) Second Challenge Government Intervention The financial managers face challenges from the government as well when it comes to investing the funds in the prospective field. Nevertheless, the market of financial managers suffers from a political party system in which one party worships the funding document while the other ignores the issue and pretends to inform the constitution distantly. However, government intervention is considered interference in a business that lowers the profit of the organization. The challenge for government intervention is challenging because it views business as the means of promotion of all kinds of activities that distresses business, investors (financial managers), customers and employees. To solve the problem from government intervention, banks bail out the irresponsible borrowers a free pass on loans depending on the frugality for all economic growth. Although, savers and investors fund economic activities to keep the bank on life support. Nevertheless, the government's continuous federal meddling is the way to owing the ability to be profitable in a way that the federal government lets the organization grow but slowly stifles them (Jamnik, 2011). References Jamnik, A. (2011). The challenges of business ethicsmanagement and the question of ethics.Tourism and Hospitality Management,17(1), 141-152. Tamny, J. (2011)."Necessary" Bank Bailouts Harm the Economy, Wreck the Banks.Forbes.com. Retrieved 2 March 2016, from https://www.forbes.com/sites/johntamny/2011/03/06/necessary-bank-bailouts-harm-the-economy-wreck-the-banks/2/#7f6413ca35a9