L'éthique dans le secteur financier

                                      How are ethics important in the financial industry?  

First and foremost, ethics, principles and even values are the key holder in every single industry, because these words themselves have a great impact.          

And I think that the financial industry is the sector that shouldn’t overlook or underestimate the importance of ethics, because it mostly deals with everything that are related to financial activities, it could be banks, assurance or even stock market.

Ethics is a concept that is well known among students who are doing higher education, before being on the field, they are taught that in the world of finance there are values, ethics and they should maintain those values.                  

Mainly in the financial industry we pay so much attention to the morality or we can say ethics, because it is extremely fragile sector in which a small clumsiness can cause some major problems.    

The financial sector is the engine of general economy because it helps the economy to reach a higher level in terms of growth, productivity and richness. Therefore if the financial system is in good condition or constant, this raises consumption and so the demand increases, the companies will subsequently increase production (supply), and creates jobs, and then as a result we have economy growth.      

From my personal point of view, if we take ethics into consideration for example, a bank must know the activities it finances, even before granting a bank loan to a company or any household, it must be known in which way this money will be used for. Whether is for dangerous activities, such as drugs, money laundering or even organ trafficking. What I am trying to say is that Islamic banks or Islamic finances take into account ethics.        

A simple crisis in the financial sector can cause real damage to the economic, political and social system. But if we look at the past we notice that there were several financial crises , to name a few of them (in 1929 the krach of New York stock exchange, stock market crash of 2001-2002 “bursting of the internet bubble“, financial crisis of 2007-2009 also known as subprime crisis, etc). These crises were only a portion of many dysfunctions in the financial sector. This suggests that those crises over the years were due to lack of ethics in the financial industry. It is often said that individuals who practice finance are unethical, and give importance to profit over human interest.              

If there have been so many crises it explains that the practice of ethics is not well applied in the financial sector. Given the fact that ethics holds a key role in the financial sector, it remains open to the question “how to make the financial industry an ethical sector?  

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