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Analyse specic areas of ethical practice within the current activities of nancial services.

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Introduction

Transfer-Encoding: chunked I am a trainee journalist for ITV. My production has been seen by a financial services recruitment agency, Taylor Green. They were most impressed with the quality of my production. Taylor Green wants me to produce some materials for them. I will analyse specific areas of ethical practice within the current activities of financial service providers and the consequences of non-compliance. All businesses that operate in the financial services industry has a duty of care towards their customers. They must make sure they are completely honest when selling products to their customers. They need to make sure they provide all details of products, what it is, how it works the benefits and also the risks; they cannot force products upon the customers. They should also not be supporting any business that is working in an unethical way. For instance, dealing with arms exporters and tobacco manufactures. In places where tobacco is made, many of the conditions are poor and the employers treat their staff unfairly and therefore is unethical. An example of unethical practice was when financial institutions like bank and building societies mis-sold payment protection insurance (PPI). ...read more.

Middle

If any customer invests their money into the Co-operative bank, they will only invest that money businesses that also only operate in an ethical manor. All businesses and individuals have a social responsibility in regards to the paying of tax. No business or person should avoid or evade the payment of taxes as it is unethical. Tax avoidance is the use of legal methods to modify an individual's financial situation in order to lower the amount of income tax owed. An example of tax avoidance in the UK is Starbucks. Starbucks were manipulating their financial data to show that they had losses. Corporation tax is only payable if you make profits, therefore Starbucks didn?t have to pay any corporation tax. Starbucks were still opening new coffee shops and so it was questionable how they did this when making losses. They had to appear in front of the parliamentary committee yet didn?t declare they were avoiding tax. Although they were not officially charged, the publicity impacted their reputation and customers stopped buying coffee from them. ...read more.

Conclusion

An example of this is with HSBC. They were fined almost $2billion for failing to stop criminals using its banking systems to launder money. Industrial democracy is another important factor; businesses should always treat their staff ethically. Nadia Eweida is an example where she was treated unethically. She worked for British Airways (BA) and was prohibited to wear a silver cross on a necklace. When she refused to conceal the cross she was fired. She went to UK courts to fight her cause for unfair dismissal, she lost. She then went to EU courts and won her case and BA had to compensate her worth £26,000. An example of unethical treatment is when H&M amongst 36 other businesses failed to pay their staff the minimum wage. They were fined a total of £51,000 and also must pay the affected staff the £177,000 they were underpaid. H&M owner Hennes & Mauritz failed to pay £2,604.87 to 540 workers and the average underpayment for those affected was £4.82. In conclusion, I have now given examples of where there has been a lack of unethical practice and lack of duty of care. I personally believe that there are many authorities in place that are working well to control businesses and to ensure everyone is treated fairly. ...read more.

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