Ethics Article Analysis - Essay Example

Review of Article Spirituality and the Global Financial Crisis Michael Whelan SM < and > I confirm that: “I have read this article thoroughly and my assignment is based on the above article”Mar 2009Ethics in Financial Management The global economic meltdown has hit the rocks. The tremors caused by financial cracks are being felt on either side of the Atlantic. World equity markets have lost approximately US$ 32 trillion in value with respect to their earlier peak. The fissures in global economic fabric are evident from these screaming headlines:General Motors Europe has piled more pressure on governments including Britain to provide €3.

3bn (£3bn) of state aid by warning that it expects to run out of cash this month (Gow, 2009)."The US economy continues to flounder as figures reported point to an unemployment rate greater than many had expected.” The non-farm payrolls showed 598,000 jobs had been lost in January 2009 (Fletcher, 2009).ILO warns, global unemployment could rise by 50 million (Monaghan, 2009) Bader, elucidating on the psychological effects of the recession, puts it succinctly, “We feel responsible for things we didnt do, and helpless in the face of things we couldnt do” (2009).

Amidst the financial imbroglio, President Obama called Wall Street bankers "shameful" for giving out nearly $20 billion in bonuses while the government bailed out financial institutions (Herald Tribune, 2009, Jan 29).Is Ethics an Option? Whelan, in his article, “Spirituality and the Global Financial Crisis” (2009), raises pertinent questions: How was this allowed to happen? What ideology, what policy, what abuses made this possible? Were there any warnings? And if so, why were they ignored?

” The writer also argues on the ethical propriety of top CEOs amassing huge wealth amidst such epic financial crisis. On a spiritual note, society craves for joy in life. And what is J-O-Y? Jesus-Others-You: necessarily in that order. But our capitalist, consumerist approach to life, is otherwise. Enjoy has verily turned into, end-joy! The common person’s bafflement has naturally turned into anger. Questions about moral and ethical values in society are beginning to surface, especially, in the corporate arena.

The financial crisis provides an opportunity for somber introspection, contemplation, and reflection on the foundations of human values on which corporate, and business edifices are built. Ethical considerations in financial management and decision making should focus on the societal and national goals. As Whelan puts it, “spirituality is living relationships. Spirituality can transform the culture and support the new economic structures and government regulations intended to foster and protect the common good.

”Impact of Ethics on Financial Decision Making Whilst business managers seek to maximize profit to delight investors of their companies, presumably legally, it is equally important to examine, can profits accrue by being good? Is there an incentive for being good? The reward of being good is goodness itself. It has a long term spread of happiness that only grows. Hooker candidly asks, “Business management is all about making the right decisions. Ethics is all about making the right decisions.

So what is the difference between the two? Management is concerned with how decisions affect the company, while ethics is concerned about how decisions affect everything. (2003)”Ethical Considerations in Financial Decision Making Based on survey of several websites of companies, formulation of ethical considerations in financial decision making should comprise:Conformance to laws, regulations and corporate policiesTransparency, honesty and accurate communications and timely disclosuresRespect for human dignity and esteemFairness in actions and decision making, beyond the immediate stakeholdersRespect for intellectual propertyGenuine concern and actionable agenda for environment protectionGenuine concern and actionable agenda for corporate social responsibilityFinancial Management ObjectivesExtract of policy at Xerox Corporation (official website: www.xerox.com, ©1999-2009)Develop honest and accurate financial statements.

Safeguard company assets.Prepare honest and meaningful financial plans, forecasts and analyses of business proposals.Enforce corporate policies in relevant areas (e.g., Cash Disbursements, Business Ethics, Capital Appropriation, Accounting, Financial Planning and Analysis, Tax compliance, Treasury Operations).Ensure that effective internal accounting and operating controls are maintained.Provide objective counsel to operating and corporate management on business alternatives. Business ethics pertains to management practiced in real world.

It sensitizes a business manager against greed, and misuse of natural resources. John F Kennedy put it so well, “A man does what he must, in spite of personal consequences, in spite of obstacles and dangers, and pressures, and that is the basis of all human morality.”References Bader, Michael. (2009, January 14). Economic PTSD: The Psychological Effects of the Recession. After Armageddon. http://afterarmageddon.blogspot.com/2009/01/economic-ptsd-psychological-effects-of.html Fletcher, Nick.

(2009, February 06). FTSE holds gains despite grim US jobs figures. Market Forces Live, Guardian UK. http://www.guardian.co.uk/business/marketforceslive/2009/feb/06/usemploymentGow, David Gow. (2009, March 03). GM Europe says it needs £3bn of state aid to survive. The Guardian, guardian.co.uk. http://www.guardian.co.uk/business/2009/mar/03/gm-requests-state-aid-to-surviveHooker, John. (2003, April). Why Business Ethics? Carnegie Mellon UniversityMonaghan, Angela. (2009, January 29). Global-unemployment-could-rise-by-50m.

The Telegraph.http://www.telegraph.co.uk/finance/financetopics/financialcrisis/4376428/Global-unemployment-could-rise-by-50m.htmlWhelan, Michael, SM. (2009). Spirituality and the Global Financial Crisis. Aquinas Academy.http://www.aquinas-academy.com/PDF/WEB%202009%2003%20SPIRITUALITY%20AND%20THE%20GLOBAL%20FINANCIAL%20CRISIS.pdfXerox Corporation, ©1999-2009. Official website. www.xerox.com http://www.xerox.com/about-xerox/citizenship/ethics/finance/enus.html