BUS FPX 4070 Assessment 9 Global Financial Management and Improving Ethics

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

Domestic financial management typically involves monitoring a company’s profit-and-loss statement, balance sheet, assets, and expenses. However, managing finances in a multinational environment introduces additional complexities. These challenges include dealing with currency risks, differing tax regulations, and variations in financial reporting standards. Companies also face higher borrowing costs, difficulties in raising capital, and political risks from foreign governments, all of which can significantly affect global financial operations (Brigham & Houston, n.d.; John, 2017; Woodruff, 2019).

Improving Ethics in Finance

Ethics in finance are essential to maintaining organizational trust and integrity. To promote ethical behavior, organizations must establish a clear code of ethics, offer training to employees, and maintain consistent communication regarding ethical standards. Furthermore, creating a culture of integrity, enforcing a zero-tolerance policy for unethical actions, and implementing internal controls to prevent fraud are critical strategies for strengthening ethical behavior in finance (Encyclopedia.com, n.d.; Hedborg, 2014; Hayes, 2022; Ethics & Compliance Initiative, n.d.; McLaverty & McKee, 2016).

Improving Ethics in Corporate Governance

Corporate governance focuses on how organizations are directed and controlled, balancing the interests of various stakeholders. To improve corporate governance, companies should clarify the board’s role in strategy formulation, monitor organizational performance, appoint competent leadership, and develop effective risk management practices. Additionally, building a skilled and diverse board, regularly evaluating board performance, and ensuring transparency in decision-making are essential for robust corporate governance (Chen, 2021; Effective Governance, n.d.; Lagercrantz, 2021).

Conclusion

Ethical practices are integral to the success and sustainability of any organization. Maintaining ethical standards across all levels of the organization—especially from top management to employees—is vital for fostering trust, ensuring integrity, and promoting long-term profitability. To achieve this, continuous training, clear communication, and strong governance frameworks are crucial for promoting ethical behavior and securing organizational success.

BUS FPX 4070 Assessment 9 Global Financial Management and Improving Ethics

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#:~:text=Good%2C%20regular%20and%20consistent%20communication,company%20policies%20on%20ethical%20behaviour.

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