Elucidate the following: (b) Ethics in finance

Ethics in finance includes the ethical issues that companies and employees are confronted with in regard to finance. Finance is the most vulnerable ethical area in business organisations as has been confirmed by a spate of unethical business practices taking place in this area in different organisations across the world including India over the period. Unethical practices in finance, also termed as frauds and scandals, have been omnipresent everywhere in the globe, of course, in varying scales and degrees. But its ever increasing tendency has called for the increasing attention and concern in the recent times because of its varied types of impending effects on the economies. The ethical issues in finance include: In accounting - window dressing, misleading financial analysis Related party transactions not at arm length Insider trading, securities fraud leading to manipulation of the financial markets Executive compensation Bribery, kickbacks, over billing of expenses and facilitation payments Fake reimbursements