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Ethics are now written clearly out in agreements that are signed when people are newly hired and the employee is expected to follow those guidelines or face termination (Gitman, 2006). Ethics in financial management is actually two different things, societal and corporate.
When talking about financial ethics, we are talking about two different types of considerations, which are quite different. First, we are talking about societal considerations, such as environmental concerns and balancing the interests of the corporation against those of stakeholders (Luft, 1997). Second, we are talking about preventing conduct which is either a violation of law or is sufficiently close to the line of illegality that the corporation has determined not to take a risk of violation, particularly without careful consideration at senior levels (Luft, 1997)...
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