BUS FPX 4070 Assessment 9 Global Financial Management and Improving Ethics

Student Name

Capella University

BUS-FPX4070 Foundations in Finance

Prof. Name

Date

Challenges of Financial Management in a Global Work Environment

Financial management within a domestic scope primarily entails overseeing a company’s profit-and-loss statement, balance sheet, and various assets and expenses. However, operating in a multinational context introduces additional complexities, including currency risks, varying tax regulations, differences in financial reporting standards, borrowing costs, difficulties in raising capital, and political risks stemming from foreign governments (Brigham & Houston, n.d.; John, 2017; Woodruff, 2019).

Improving Ethics in Finance

Ethical conduct in finance plays a pivotal role in upholding trust and integrity within organizations. Establishing a well-defined code of ethics, offering training programs, and fostering consistent communication regarding ethical standards are crucial initiatives. Moreover, nurturing a culture of integrity, advocating for a zero-tolerance approach towards unethical behavior, and implementing robust internal controls to deter fraud are effective strategies (Encyclopedia.com, n.d.; Hedborg, 2014; Hayes, 2022; Ethics & Compliance Initiative, n.d.; McLaverty & McKee, 2016).

Improving Ethics in Corporate Governance

Corporate governance involves the direction and oversight of a company, balancing the interests of various stakeholders. To enhance corporate governance practices, organizations should clarify the board’s role in formulating strategy, actively monitor organizational performance, appoint competent leadership, and establish robust risk management protocols. Additionally, fostering a skilled and diverse board, regularly evaluating board performance, and maintaining transparency in decision-making processes are imperative (Chen, 2021; Effective Governance, n.d.; Lagercrantz, 2021).

Conclusion

Ethics serve as a cornerstone for the prosperity and longevity of organizations. Upholding ethical standards, from senior management to employees, is vital for cultivating trust, preserving integrity, and achieving sustainable profitability. Continuous training, transparent communication, and effective governance mechanisms are pivotal in fostering ethical behavior and ensuring organizational success.

References

Brigham, E. F., & Houston, J. F. (n.d.). Fundamentals of financial management. Cengage Learning.

Chen, J. (2021, July 4). Corporate governance. Investopedia. https://www.investopedia.com/terms/c/corporategovernance.asp

Encyclopedia.com. (n.d.). Ethics in finance. https://www.encyclopedia.com/finance/finance-and-accounting-magazines/ethics-finance

Effective Governance. (n.d.). Top ten steps to improving corporate governance. https://www.effectivegovernance.com.au/page/knowledgecentre/news-articles/top-ten-steps-to-improving-corporate-governance

Ethics & Compliance Initiative. (n.d.). Five ways to reduce ethics and compliance risk. https://www.ethics.org/resources/free-toolkit/reducing-risk/

BUS FPX 4070 Assessment 9 Global Financial Management and Improving Ethics

Hedborg, C. (2014, November 3). Five steps to improve ethical performance. CGMA. https://www.cgma.org/blogs/five-steps-to-improve-ethical-performance.html

Hayes, A. (2022). [Barriers to entry]. Unpublished manuscript.

Lagercrantz, M. (2021, October 13). Corporate governance: How to ensure good corporate governance in 10 simple steps. BoardClic. https://boardclic.com/corporategovernance/how-to-ensure-good-corporate-governance/

McLaverty, C., & McKee, A. (2016, December 29). What you can do to improve ethics at your company. Harvard Business Review. https://hbr.org/2016/12/what-you-can-do-to-improve-ethics-at-your-company

Woodruff, D. (2019). [Understanding the challenges of multinational financial management]. Unpublished manuscript.

BUS FPX 4070 Assessment 9 Global Financial Management and Improving Ethics