Financial Manager Role of Business Ethics & Wealth Maximization

Question: Discuss what you have learnt from the article(s) and how it has helped you better understand the role of a financial manager? Answer: Learning from Article and Understandings on Role of Financial Manager A financial manager of a company has a vital role to play within the organization that can be very well explained from evaluating the article Mitsubishi Motors Halts Sales of Some Models as Fuel-Economy Scandal Spreads. The article revealed certain issues related to the business ethics that was not followed by the CEO of the company wile maximizing companys wealth. It was gathered from the article that CEO of Mitsubishi Motor Corp, Osamu Masuko blamed the oversight of lax management for the falsified fuel-economic information (McLain 2016). It was observed that the business faced ethical issues in the areas of integrity and trust. The company did not understand the relevance of conducting its business with increased commitment and integrity that encompass the consideration to ensure wealth maximization through business deeds with honesty, commitment and offering fair treatment to all its consumers. The case of Mitsubishi Motors in the article cleared that if the financial manager of a company indicates superior commitment in conducting ethical business practices, an increased level of trust can be built among the business and the individuals those it intends to serve. The case of the company indicated that, the CEO got involved in unethical business practices and falsified the data of fuel economy for the models of its cars sold in Japan. The recent news stated that the overall business models those were withdrawn from the market increasingly mis-stated the figures of the fuel economy to 12 (Bennett et al. 2013). The financial manager should consider conducting business in an ethical manner. The financial manager of the company must establish boundaries that can prevent the personal and the professional interests to result in conflict in consideration to employer interest. The finance manager of the company must tighten the companys regulatory compliance standards. The article revealed that the lax management oversight generated a business culture in which the employees of the company falsified the data to obtain unrealistic business profits. It was also revealed that at the time the employees of the company showed concerns regarding the possible data mis-statements it was not taken into consideration by the management. The case evaluation of Mitsubishi Motors indicated that the company dealt with issues of unethical business practices for increasing profits that necessitates maintenance of code of ethical conducts by the financial manager of the company (Deegan 2013). Based on the case of Mitsubishi Motors it can be stated that a financial manager must disclose information to its stakeholders and offer them with data those are accurate, understandable, timely and important. The role of the financial manager also includes complying with regulations of private and local governments along with regulations of regulatory agencies. The financial man ager must report any kind of violations in the code of unethical behavior of the board of audit or from compensation committee. They are expected to cooperate in further internal, investigations on the ethical misconduct and must follow the whistle blower policies and procedures accordingly (Aktar 2013). Reference List Aktar, I., 2013. Disclosure strategies regarding ethically questionable business practices.British Food Journal,115(1), pp.162-193. Bennett, V.M., Pierce, L., Snyder, J.A. and Toffel, M.W., 2013. Customer-driven misconduct: How competition corrupts business practices.Management Science,59(8), pp.1725-1742. Deegan, C., 2013.Financial accounting theory. McGraw-Hill Education Australia. McLain, C., 2016.Mitsubishi Motors Halts Sales of Some Models as Fuel-Economy Scandal Spreads. [online] WSJ. Available at: https://www.wsj.com/articles/mitsubishi-motors-halts-sales-of-some-models-as-fuel-economy-scandal-spreads-1472559171 [Accessed 19 Nov. 2016].