1.. What are the potential risks to a company of unethical behaviors by employees? What are potential risks to the public and to stakeholders? Corporate ethics codes are often faulted for being “window dressing,” for having little or no effect on actual behavior.

Financial ethics expert John Dobson says day-to-day behavior in the workplace

“acculturates” employees, teaching them that the behavior they see is rational and acceptable in that environment.

The good news is that professional ethics codes, such as those developed for chartered financial analysts, corporate treasury professionals, and certified financial planners, actually provide sound guidelines for behavior.

These codes, notes Dobson, are based on economically rational concepts such as integrity and trustworthiness, which guide the decision maker in attempting to increase shareholder wealth. Financial executives insist that there should be no separation between an individual’s personal ethics and his or her business ethics. “It’s a jungle out there” and

“Business is business” should not be excuses for engaging in unethical behavior