What is business ethics? In simple terms it is a set of rules that emphasizes on the moral obligation of business managers to the employees, economy, law and the society. Business ethics require managers to manage business without taking resort to any unfair mean. But, the issue of business ethics was not in much discussion before the fall of Enron a decade ago. The bankruptcy of Enron underscored the necessity of ethical business operations, especially when it comes to accounts and financial affairs. A finance manager is responsible for managing the accounts of a company. So, it is his job to see that moral values are being followed by the company in financial matters.
Business ethics for finance managers define that the manager should not indulge himself into any such practice that can have a negative impact on the economy of the society and the company. It is possible to succeed in a business staying on the right path, but often finance managers are caught between the indispensability of business ethics and the requirement of their employers. Hence, they should be able to maintain a balance between the two in order to be a successful finance manager.
As finance managers are always aware about the plans, programs and performance of the company, they should in no way use their knowledge in such a way that can affect the share prices of the company. Such an act would be a direct breach of the law and finance managers can be convicted for this crime. Another important ethical act for finance managers is to report of a financial malpractice to the authority whenever it comes to his notice. It may cost him his job but keeping mum would throw him in deeper trouble. A finance manager has to follow these ethics if he has to build a successful career in his life.