Effects of financial planning governance and ethical issues in modern economies

Brendan Murtagh Objective s of project To provide guidance for professional accountants on how best to act in the public interest when they become aware of a suspected illegal act or non-compliance with laws and regulations NOCLAR. Scope A revision of Section and the development of two new sections in Parts B and C to provide additional guidance for professional accountants in public practice and in business on how to respond in situations where they encounter a suspected fraud or illegal act. The project will focus on the actions that the professional accountant takes when encountering such a situation.

Effects of financial planning governance and ethical issues in modern economies

These business practices highlight the positive connections between economic and ecological efficiency. An example of the compatibility of eco-efficiency and corporate profits is reported in the October issue of The Green Business Letter. This massive process, referred to as "greening the supply chain," is being carried out in partnership with government, NGOs, and university resources as well as suppliers.

GM is one of some large corporations which belong to Climate Wise, a government initiative in the United States to implement energy-efficient and pollution-prevention projects that lower operating costs while reducing emissions linked to global climate change.

WBSCD, which seeks to be the pre-eminent spokesperson for business on environmental matters, has sponsored workshops and publications describing the application of the concept of eco-efficiency drawing upon numerous examples from its member companies.

In a very recent publication, Environmental Performance and Shareholder Value, WBCSD challenges the financial markets to recognize how environmental performance of companies enhances their short- and long-term financial performance. Of particular significance are the benefits of eco-efficiency, better management of environmental risks, and new business opportunities.

There is growing evidence, the publication states, that companies which rate highly on environmental criteria also provide better-than-average returns to shareholders. Furthermore, insurance companies and pension funds, which control immense resources and invest with a long-term focus, are beginning to study carefully the relationship between environmental performance and shareholder value.

Another organization helping companies improve their environmental performance is the International Network for Environmental Management INEMa world federation of non-profit business organizations for environmental management and sustainable development.

INEM, with 35 member associations from 30 countries, focuses on small and medium-sized companies and developing countries and Eastern Europe.

There are also a number of environmental management tools and concepts being developed and introduced by business throughout the developed world. These tools include life cycle assessment and costing, environmental management standards, eco-labeling, and recycled-content standards.

Multinational corporations are also encouraged to apply the same environmental criteria to investments abroad as to those in their home country.

An emerging concept to link economic and environmental interests and thus make the market system work for the benefit of the whole of society is the definition of pricing tools such as environmental taxes and permit systems to more accurately recognize and reflect the environmental costs of their production, use, recycling and disposal.

In some companies accounting methods are being revised to make this possible. Advocates of such environmental accounting insist that replacement costs of natural resources and the social costs of consumption ex: An exemplary model of voluntary industry action is "Responsible Care," a programme of the Chemical Manufacturers' Association in the United States.

This programme launched in was aimed at continuously improving performance in health, safety, and environmental protection.

Results have been impressive. Another economic benefit from such measures is stakeholders' preference for environmentally progressive companies which make it easier to recruit top talent and to increase the loyalty on the part of employees and suppliers. These initiatives of business also make good economic sense.

A recent study in the United States by Vanderbuilt University and the Investor Responsibility Research Center IRRC found that in more than 80 percent of comparisons, "low polluters" performed better financially than "high polluters".

They also found that firms with a larger number of environment-related lawsuits compared with their industry peers earn a lower level of return on assets and return on equity.

Surveys have repeatedly shown that customers will favor products whose manufacturer has a reputation for environmental stewardship.

CEP has gone further in its Campaign for Cleaner Corporations by annually identifying some of the worste environmental offenders and working with them to change their poor policies and practices.

Introduction to Corporate Governance As firms increasingly internationalise, suitable strategies for managing human resources have become critical to competition between the MNCs. Students can develop an insight into managing human resources in different national contexts and examine those global and national factors that impact approaches taken to international human resource management.
The Importance of Ethics in Business | Investopedia Why is business ethics important? By Melissa Horton Updated March 30, — 8:
See Yourself Succeed in Finance In the 21st century, ethics is neither a luxury nor an option.
Ethical Issues in Globalization | Synonym Honest financial planners can face real dilemmas when trying to do the right thing for their clients.
Corporation Finance: International Financial Reporting and Disclosure Issues Rising health care costs continue to dominate the American health policy agenda. Accordingly, there are thousands of publications, hundreds of professional, industry and advocacy organizations, and dozens of well-funded "think tanks" writing about health finances.

Voluntary action particularly when it is undertaken in partnership, is nearly always more effective and favorable for business than arbitrary government regulation. Communities Business operates in neighborhood, local, regional, national, and global communities. Companies can make no more important contribution to these communities, and especially to local communities, than to provide meaningful jobs, fair wages and benefits, and tax revenues.

But, as 89 percent of participants in a survey of business leaders in the United States confirmed, this is not enough.

The success of business is linked to the health, stability, and prosperity of the society and of the communities in which it operates. If education is neglected, or not relevant to the needs of business, as is too often the case, companies cannot have a competitive work force.

Community-focused businesses like banks, retailers, and newspapers cannot prosper in declining localities. So the problems of education, health, crime, unemployment, and drugs dramatically affect business.

While business has traditionally considered these to be the exclusive domain of government, today more and more busi ness leaders are accepting part of the responsibility to improve the communities in which they do business.

Companies relate to communities in various ways, as shown in the diagram below.The journal's emphasis on the inter-dependencies of accounting and finance reflects the increasing complexity of corporate financial management in recent years, and verifies the importance of understanding accounting and finance from an international context.

Nike Child Labor Issues in Pakistan The Issue Nike has been accused of using child labour in the production of its soccer balls in Pakistan. This case study will examine the claims and describe the industry and its impact on labourers and their working conditions.

Modern ethical investing began in the United States in , centering at that time around issues like the war in Vietnam and Ralph Nader's attacks on poor safety of automobiles. Today, nearly $3 billion are invested in the United States in over 40 environmentally and socially screened mutual funds.

Planning is the intellectual anticipation of possible future situations, the selection of desirable situations to be achieved (objectives) and the determination of relevant actions that need to be taken in order to reach those objectives at a reasonable cost.

Effects of financial planning governance and ethical issues in modern economies

Ethical Issues For Financial Advisors Ethical Issues Today. The correct application of ethics in modern financial planning essentially boils down to having the client understand exactly.

The convergence of corporate social responsibility (CSR) and corporate governance (CG) is an important issue in the corporate regulation landscape. The issue has somewhat decreased in significance in strong economies; however, in weak economies, it has contributed to significant reformation of the regulatory environment that guides CG.

Solved: Ethics in financial planning, Business Law and Ethics