IndexLegal aspectsBalancing actDenunciatorsEthics is a principle based on doing the right thing. They are the moral values ​​by which an individual or company operates. The company should act ethically until it achieves ultimate success. The history of doing the right things helps increase the organization's strength and reputation in the community. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay Ethics has a moral value but is supported by legal consequences if certain guidelines are not followed. Most people didn't give much thought to the effect of ethics on business until the fall of Enron in 2001 and 2002, but every financial manager needs to be regularly educated about ethics. The ethics of a financial manager should be above the approach. This includes more than simply acting honestly and loyally. It means establishing boundaries that prevent professional and personal interests from appearing to conflict with the interests of the employer. The financial manager must provide knowledgeable, accurate and timely information to the company, while at all times being aware of potential disclosure issues, such as legal implications. The manager is ethically responsible for protecting the employer's trust and adhering to the limits of the law. Legal Issues Some laws are specifically designed to address the unethical actions of financial managers. For example, if a financial manager knows about trading activity that will affect the price of shares and uses that information to buy or sell shares again for financial purposes, he has breached a fiduciary relationship with his employer and has broken the laws established by the Securities and Exchange Commission (SEC). A financial manager who is aware that his company may be violating the law can be held legally responsible for a crime. Balancing Act The dilemma faced by many financial managers is balancing the need to act ethically while meeting the needs of the employer. The employer's ultimate goal is to maximize earnings, and the drive to make money can lead an employee to act unethically. If a manager believes his company may have crossed an ethical line, his first step should be to discuss it with his employer. If you believe your actions warrant legal intervention, you should do so without fear of repercussions. Please note: this is just an example. Get a custom paper from our expert writers now. Get a Custom Essay Whistleblowers If a discussion with an employer does not resolve the ethical issues facing a financial manager, he or she can report the activity to the appropriate government agency for investigation. This is known as whistleblowing. Under current laws, an employee has the right to report suspicious activity without fear for their job. While the activity may put a strain on his employment relationship, it is protected by law.