Unit 1214: Ethics and Governance in Finance

1. Overview of Ethics in Finance

1.1 Importance of Ethics in Finance

• Definition and scope of ethics in finance
• The role of trust and integrity in financial markets

1.2 Key Concepts

• Fiduciary duty: responsibilities and expectations
• Conflicts of interest: identification and management
• Ethical decision-making processes: frameworks and models

2. Regulatory Framework in Finance

2.1 Major Regulatory Bodies

• Securities and Exchange Commission (SEC): roles and responsibilities
• Other relevant agencies: FINRA, CFTC, etc.

2.2 Key Laws and Regulations

• Dodd-Frank Act: purpose and key provisions
• Sarbanes-Oxley Act
• Insider trading laws
• Anti-Money Laundering (AML) regulations

3. Insider Trading and Market Manipulation

3.1 Definitions and Ethical Implications

• What constitutes insider trading?
• Forms of market manipulation

3.2 Real-World Examples

• Notable insider trading cases
• Consequences for individuals and organizations

3.3 Legal and Ethical Consequences

• Penalties and enforcement
• Impact on market integrity

4. Corporate Governance and Compliance

4.1 Principles of Corporate Governance

• Role and structure of boards of directors
• Shareholder vs stakeholder interests

4.2 Compliance in Finance

• Importance of regulatory compliance
• Compliance programs and monitoring
• Whistleblowing and ethical reporting

5. Ethical Dilemmas in Finance

5.1 Common Ethical Dilemmas

• Balancing profit with ethical considerations
• Pressure to meet financial targets vs ethical conduct

5.2 Case Studies and Analysis

• Interactive scenario evaluations
• Applying ethical frameworks to dilemmas

6. Socially Responsible Investing (SRI)

6.1 Introduction to SRI

• Definition and history
• Comparison with traditional investing

6.2 Environmental, Social, and Governance (ESG) Factors

• ESG criteria and assessment
• Impact on investment decisions

6.3 Trends and Challenges

• Growth of SRI funds
• Measuring social impact

7. Ethical Leadership in Finance

7.1 Characteristics of Ethical Leaders

• Integrity, transparency, accountability

7.2 Fostering a Culture of Integrity

• Leadership strategies
• Encouraging ethical behavior within organizations

8. Ethical Challenges in Global Finance

8.1 Cross-Border Transactions

• Ethical issues in international deals
• Jurisdictional challenges

8.2 International Regulations

• Global regulatory bodies
• Compliance challenges across countries

8.3 Cultural Differences in Ethics

• Varied ethical standards and practices
• Managing ethical conflicts in multicultural environments