Each of us is a member of a society in which there is traditionally a certain pattern of behavior that is considered normal. It is enshrined in the concept of universal human values. And most importantly, it does not violate ethics, does not harm others. However, there are people who do not follow it. On the contrary, they, disregarding moral principles, commit immoral acts harming the rest of society. Such people are called deviants, and their behavior is unacceptable.
Turning to spirituality
Many immoral acts are immoral not only from a human point of view, but also from a religious point of view. Take greed, for example. An unhealthy craving for material goods often pushes people to commit terrible acts, with the help of which they manage to satisfy their greed.
Pride, which is one of the seven deadly sins in Catholicism, also refers to immoral qualities. Excessive arrogance and disrespect for other people do not make anyone better. Just like adultery. Adultery is a sin, an immoral act, betrayal and humiliation of the one to whom the oath of allegiance was given. The person who committed it is not worthy of trust, respect and good attitude.
Vanity is perceived by many as a socio-psychological property of a person, which, however, does not paint people. Often they are selfish, arrogant, constantly yearning for conviction of their own superiority. It would seem, is it really bad to appreciate and love yourself? No it's okay. But vanity alone implies flaunting all of the above, which is usually done through humiliation or neglect of other people.
Notable examples
Many of us have long ceased to notice the immoral actions of people that are found almost at every step. A striking example can be considered the use of obscene expressions, observed everywhere. Foul language is speech saturated with obscene expressions. They are also called obscene. Why? Because they are shameless, which means they violate public morality.
The abuse, which has long become habitual and has lost the ability to shock the members of modern society, has practically ceased to fall into the category of immoral acts. In contrast to insults, which are deliberate degradation of the dignity and honor of the person. And such immoral acts as insults are punishable by law. All provisions regarding this are spelled out in article 5.61 of the Code of Administrative Offenses of the Russian Federation.
Conflicting Behaviors
If a person commits an immoral act, then he definitely does not fit into the generally accepted moral framework. But it matches certain forms behavior contrary to the norms. There are several of them. These are drug addiction, substance abuse, prostitution, crime, alcoholism and suicide.
It is believed that a person adheres to one or another form of behavior for one of three reasons. To the first, the most common in modern society, refers to inequality on the social ladder.
Everything is simple here. The behavior and upbringing of a person is influenced by his income. The smaller it is, the higher the likelihood of personality degradation. Many people try to cope with disappointments in their lives with drugs or alcohol. They cannot be blamed for the lack of an inner core. Poverty is indeed a psychologically difficult ordeal.
External factors
The commission of an immoral act by a person who follows one or another form of behavior may also depend on his environment... It is no secret to anyone that the thoughts and actions of an individual are often formed under the influence of family, friends, colleagues, and classmates. Unfortunately, those people who grew up surrounded by individuals with immoral behavior and saw nothing but deviant actions begin to consider everything like that to be the norm.
The environment and society is one of the fundamental reasons that shape human consciousness. Often, to eradicate immoral acts, the help of sociologists is required, who work not with one guilty individual, but with a whole group of people.
The level of education is also important. Sometimes people do not know about such elementary concepts as "morality" and "morality" because of their ignorance. Rules, norms and traditions should be passed from generation to generation, and this is the task of parents. But some people simply forget to educate their children and instill in them the awareness of how to act and how not to.
Attitude towards animals
It is impossible not to pay attention to the immoral actions of people regarding our smaller brothers. Cruelty to animals is not only a crime, but also a burning moral issue. Individuals who allow themselves to mistreat our smaller brothers are not accepted by normal, modern society. They are condemned and condemned by other people.
It is the most real immoral act. It does not pose a threat to public safety. But nevertheless it is unacceptable and unacceptable from another, moral point of view.
Real cases
A variety of immoral acts take place in our life. And you will not wish even the enemy to become their victims or witnesses.
How many situations are known when sons got drunk to the point of insanity and threw their fists at their mothers. Or when a pet beloved by someone was subjected to cruel actions by juvenile deviants for the sake of entertainment. Often, many people have witnessed suicide, which also belongs to the considered category of behavior. And of course, none of us is immune to betrayal for the personal gain of a trusted person.
When you realize how often these and similar cases occur, it becomes extremely clear that morality in modern society, unfortunately, is by no means in the first place in the value system.
Bad manners
Speaking about moral and immoral acts, it is worth mentioning that the latter also includes behavior that is perceived by many as elementary rudeness and bad manners.
And examples of this accompany us in Everyday life... In public transport, you can often observe a picture of how ill-mannered individuals push in the back those in front, just to quickly leave the salon. When leaving the premises, many do not hesitate to slam the door right in front of the noses of those who follow them, and without even looking back.
But most often, perhaps, there are individuals who openly violate the rules of community. They put trash on staircase, smoke in the entrance without opening windows, violate sanitation and hygiene in other ways. These are also immoral acts. Examples surround us everywhere, but we stopped noticing many of them, because, no matter how sad it may be, they have passed into the category of everyday life.
Ethical or unethical? - this is a subject of controversy for the philosophical discipline - ethics. In everyday life, we usually talk about morality and moral criteria for human behavior, about good and evil, relying on the traditions and rules that have developed in society. And when scandals break out in the business environment, sometimes turning into a subject of global discussion and condemnation, experts, and we ourselves try to determine the degree of morality or immorality of the actions of the management of a particular company.
Most often, scandals break out in connection with corruption, financial fraud, tax evasion, fraudulent information, attribution of personal expenses to economic items, and a number of others. All of them are of the nature of an economic offense, but the reason that gives rise to them is always associated with behavioral components.
Descending road
“The surest road to hell is the one along which one descends gradually, the road is gentle, soft, without sudden turns, without signposts,” noted the writer and theologian Clive S. Lewis. In business, everything also starts with petty theft and fraud, “innocent” use of office supplies brought from work in the home. Research by the Harvard Business School found that about 75% of firms surveyed said they had witnessed unethical and sometimes illegal behavior by their colleagues.
The problem of unethical behavior is aggravated by the fact that, noticing unethical behavior, many employees tend to “ignore” the immorality of actions, considering them a trifle. Role-playing game in the course of the study, reproducing the audit, clearly demonstrated that the “auditors” did not report a gradual and insignificant overestimation of the reporting data, and that the “accountants” who immediately prescribed a large figure were required to report.
Unethical leadership
Experts note that overestimated self-esteem is inherent in leaders at all levels of the corporate hierarchy, sometimes leading to a disconnection from reality and pushing them to permissiveness. And this at a time when their ethics, values and behavior have a direct impact on the attitudes and behavior of those whom they lead, i.e. on organizational culture. This impact can be positive or negative.
The ethical behavior of the leadership must be specific enough to remain within the boundaries of leadership behavior and decision-making based on fairness and morality. Unethical leadership is a broad concept that includes many ways to “prove yourself”.
The “moral” standards of an unethical leader can be defined as illegal behavior, actions and decisions that violate moral standards, incl. contributing to unethical behavior of subordinates. A leader must resist to be ethical and effective.
Moral behavior is a set of actions, actions of people that meet the norms of morality, consciousness, order, formed in society, or towards which it is directed.
In the process of entrepreneurial and managerial activity, there are cases of deviation from social norms, that is, unethical behavior, it can be caused by various factors:
1.competitive struggle;
2. the pursuit of large profits;
3. inept incentives for leaders for ethical behavior;
4. underestimation of ethical norms in society;
5. an attempt to achieve the goal and realize the mission of the organization at any cost;
6. unethical behavior of partners;
7. conflict, stressful situations in the organization;
8. unsuccessful selection and inept use of leadership styles;
9. complex system development and decision making in the organization.
To ensure ethical behavior, modern management offers the following measures:
Introduction of ethical norms that reflect the system of common values, social preferences, rules of conduct for employees of the organization;
Creation of ethics committees;
Application of incentive mechanisms that counteract unethical behavior and behavior;
Implementation of social audits to determine the impact social factors on the organization;
Organization of training on ethical behavior for managers and all personnel:
Continuously informing employees about cases of highly ethical behavior;
Conducting meetings, conferences, symposia, etc. on issues of ethical behavior.
The established norms of morality are the result of a long-term process of the formation of relationships between people. Without observance of these norms, political, economic, cultural relations are impossible, because one cannot exist without respecting each other, without imposing certain restrictions on oneself.
When faced with the problem of ethical choice, managers tend to rely on a normative point of view, that is, certain norms and values, in accordance with which decisions are made.
In normative ethics, there are several approaches to describing value systems and, accordingly, adopting ethically difficult decisions that can be applied in management practice: utilitarian approach, individualistic approach, moral and legal approach, the concept of justice.
Utilitarian approach. The basic principles of the utilitarian approach are based on the fact that moral behavior is most beneficial the largest number of people. The decision-maker must consider the impact of each of his options on all stakeholders and choose the option that brings pleasure to the largest number of people.
Individualistic approach. Assumes that a person's actions are morally acceptable that are beneficial to her in the long term. Self-control is considered the main driving force, and all external forces, which limit it, must be suppressed. Each person chooses for himself the most profitable solution in the long term, on the basis of which he judges the quality of his decisions. Individualism is reduced to behavior that is beneficial to other people, that is, a person's actions begin to correspond to the norms desirable for society. One of the features of this approach is that it presupposes (if necessary) the actions of the individual aimed at acquiring personal short-term benefits that are incompatible with social norms.
Moral and legal approach. The moral-legal approach asserts that a person is initially endowed with fundamental rights and freedoms that cannot be violated or limited by the decisions of other people. In the decision-making process, the following moral rights can be taken into account:
1. The right to freedom of consent.
2. Right to privacy.
3. The right to freedom of conscience.
4. Right to Proper Treatment.
5. The right to life and safety.
Justice concept. There is distributive justice (equal - equal), procedural justice (compliance with the rules), compensatory justice (compensation for damage).
In the global economy, there are seven main mechanisms by which norms can be put into practice. These include:
1) codes of ethics;
2) ethics committees;
3) training;
4) social audits;
5) legal committees;
6) services, consider claims of citizens on ethical issues;
7) changes in the corporate structure.
The most commonly used mechanism is a code of ethics. It is developed by a specially created body - a committee, a commission, and the like. About 90% of foreign companies have implemented ethical principles through such codes. They can be developed for the company as a whole and contain ethical rules common to all.
In the global economy, many companies are now creating divisions or hiring individual employees to develop codes of ethics: Steps are being taken to educate managers on the provisions of these codes; a system of incentives for managers is also being created, provided that they take ethical issues into account when making decisions and that their official conduct complies with the ethical standards set forth in the codes.
When monitoring official actions of employees, companies use lie detector tests, drug tests, etc.
More productive, in the opinion of managers of many firms and their owners, is the way of hiring graduates educational institutions, where there was a large and extensive program of teaching the basics of ethics. In this case, ethical standards are laid in the consciousness (and subconsciousness) of the future employee as part of the ideological complex and, one might even say, as unshakable axioms, are not subject to appeal. Then the cumbersome and expensive system for developing company codes, training employees in ethical standards of monitoring compliance with ethical requirements is largely unnecessary.
Why are high ethical standards so important to the investment industry and investment professionals? As shown by the 2008 global financial crisis, seemingly unimportant individual decisions, such as approving loans to individuals unable to provide proof of stable income, can collectively accelerate market crisis which can lead to economic hardship and job losses for millions of people. In an interconnected global economy and market, each participant must strive to understand how his or her decisions and unethical behavior, as well as the products and services he or she provides, can affect not only the short term, but also the long term.
The investment industry serves society by matching those who provide capital or money with those who are looking for it to finance their activities. Consider those who provide capital - investors and those who are looking for it - borrowers. Borrowers can seek funds to achieve long-term goals such as building or upgrading factories, schools, bridges, highways, airports, railways or other objects. They can also seek short-term capital to fund short-term goals and / or support their day-to-day operations. Borrowers can be businesses, schools, hospitals, companies and other legal entities and individuals. Some borrowers will turn to banks or other lending institutions to finance their activities; others will turn to stock exchanges to gain access to the funds they need to achieve their goals.
In exchange for providing capital to finance borrowers, investors expect their investments to generate returns, offsetting their use and associated risks. Before providing capital, diligent and disciplined investors will assess the risks and rewards of providing capital. Certain risks, such as a downturn in the economy or a new competitor, can negatively impact the expected return on investment. To help assess the potential risks and rewards of an investment, investors conduct research, assess borrower capabilities, conduct competitive analysis, read official statements, research management's business plan, research reports, and industry reports. Responsible investors will not invest their capital if they do not trust that their capital will be used to their advantage. Investors and society benefit from capital flows for borrowers who can benefit the most from capital through products and services.
Cash flows are more efficiently allocated to investors and borrowers when financial participants are confident that all parties will behave. Ethical behavior builds and reinforces trust, which has benefits for individuals, firms, and society as opposed to unethical behavior. When people believe that a person or institution is reliable and acts according to their expectations, they are more likely to accept the risks associated with those people and institutions. For example, when people trust their own, they are more likely to invest their money and accept the risk of short-term price fluctuations because they can reasonably believe that their investments will provide them with long-term benefits. Entrepreneurs are more likely to accept the risk of expanding their business if they believe they can attract investors with the necessary funds to expand at a reasonable cost. The higher the level of trust in the financial system, the more people are willing to participate in the financial markets. Wide participation in financial markets allows capital flow to finance the growth of production of goods, provision of services, infrastructure. All of this benefits society with new and often better built hospitals, bridges, manufactured products, services rendered and jobs created. Widespread participation in financial markets also means that the need and demand for investment professionals is increasing, resulting in increased employment opportunities for those seeking to use their specialized skills and knowledge of financial markets.
Ethics always matters, but ethics matters in investment because the investment industry and financial markets are built on trust. Unethical behavior repulsive, ethical behavior attracts. Trust is important for the entire business, but it is especially important in the investment industry, for several reasons. Reasons may include: the nature of customer relationships, differences in knowledge and access to information, and the nature of investment products and services.
In relations with clients, investors entrust their assets to financial intermediary firms to provide intermediary functions, helping to preserve their capital. Failure to protect clients' assets by the firm and its employees can have serious consequences for everyone involved. Without trust and ethical behavior, intermediary firms would have no business.
Those in the investment industry have specialized knowledge and sometimes better access to information. Having specialized knowledge and better access to information is an advantage in any endeavor, giving one side more power. Investors believe that those they hire will not use their knowledge to harm it. They rely on an investment specialist who uses specialized knowledge to serve the interests of the client.
Another reason why trust is so important in the investment industry has to do with the nature of the products and services. Other industries, such as transportation, manufacturing, technology, retail or food processing, manufacture products and / or provide services that are tangible and / or clearly visible. We can hold a tablet in our hands and test it. We can use software, dine at restaurant chains and watch movies in cinemas. We can judge the quality of a product or service based on many factors: how well will it perform its intended function? How effective is it? How durable is it? How attractive is that? Is the price reasonable or appropriate for the product or service?
In the investment industry, many investments are intangible and only appear as numbers on a page or screen. With no tangible products to verify and no guarantees of any kind to protect the product or service to perform as expected, investors must rely on the information provided about the investment - both before and after purchase. When they contact their financial advisor and ask for an investment report, they receive either an electronic or a printed statement listing the transactions. They believe the information is accurate and complete, and they trust the investment professionals with whom they advocate. The globalization of finance means investment professionals are likely to have business opportunities in new or unfamiliar places. Without trust and ethical behavior, financial transactions, including global transactions, are less likely. Unethical behavior can scare off the interaction of counterparties from different parts of the world.
Because of these factors. This trust is created, supported by the ethical actions of all individuals who work and / or precinct in the markets, including those who work for companies, banks, investment firms, sovereign companies, rating agencies, accounting firms, financial advisors and planners, and institutional and retail investors. When market participants act ethically, investors and others can trust that the numbers on the screen or report pages are accurate representations of information and be confident that investing and participating in the financial markets will be profitable. The ethical behavior of all market participants can lead to greater participation, customer protection and greater investment opportunities. The ethical behavior of firms can lead to more high levels success and profitability for both firms and their employees. Clients are attracted to firms with a solid track record, resulting in business growth, higher revenues, and greater profits.
There is another - unethical behavior. Unethical behavior is an action that goes beyond what is considered morally right or right for a person, profession, or industry. Individuals can behave unethically. Entrepreneurs, professionals and politicians can also behave unethically. Unethical behavior in the investment industry poses more threats than in any other professional field. And a number of factors contribute to this.
At the level of microeconomics. Firms with ethical behavior may also have lower relative costs than those with unethical behavior, as regulators are less likely to initiate costly investigations or impose significant fines on firms where high ethical standards are the norm.
At the level of macroeconomics. Unethical behavior dilutes and can even destroy trust. When clients and investors suspect that they are not getting accurate information or that the market is not a playing field, they lose confidence. Investors with low confidence are less willing to take risks. They may demand a higher return on the use of their capital, prefer to invest elsewhere, or choose not to invest at all. Any of these actions will increase costs for borrowers seeking capital to finance their operations. Without access for capital, borrowers may not be able to meet their targets of building new factories, bridges, or hospitals. Reduced investment can harm societies through job losses, growth and innovation. Unethical behavior ultimately harms not only clients, but also the firm, its employee and others who are in one way or another connected with the investment process. You can read an example of unethical company behavior in the article.
Declining confidence in the markets can dampen the growth of the investment industry and tarnish the reputation of firms and individuals in the industry, even if they did not engage in unethical behavior. Unethical behavior hinders the ability of markets to channel capital to borrowers who can create the most value from growth capital. Both markets and society are affected when unethical behavior erodes trust in financial markets. For you personally, unethical behavior can cost you your job, reputation and professional growth, and can lead to fines and possibly jail time. The unethical behavior of the company poses a threat both to the person / company who has undertaken such behavior, and to the subjects who did not directly participate in the process.
Questions to consolidate knowledge after reading the article "Unethical behavior in the investment industry"
Question 1
Which of the following statements is the most accurate. Investment professionals have a particular responsibility for ethical behavior because:
A) The industry is highly regulated.
B) they are tasked with protecting clients' assets.
C) the profession requires compliance with its code of ethics.
Solution 1:
B is the correct answer. Investment professionals have a special responsibility because clients instruct them to protect clients' assets.
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At all times in society it was condemned amoral behavior... Therefore, it is necessary to clearly recognize the difference and understand what it is. Morality is a collection of behavioral rules in society. Moreover, it should be noted that its norms differ in different cultures and nationalities. So, what is the norm for your family and culture, in another country it becomes an indicator of immorality and, accordingly, vice versa.
Deviant behavior
Immoral behavior is a subgroup in the classification of the deviant. Often these two concepts are confused and replaced with one another, which is naturally a mistake. To understand the meaning of "immoral", one should understand the concept and classification of deviant behavior.
Deviant behavior is a person's actions that do not correspond to the norm, that is, they are non-standard.
Deviant behavior can be conditionally divided into two groups:
- Human actions deviating from the norm due to mental disorders... This group includes people with psychopathic illnesses. The so-called category of mentally abnormal. This group also includes people with mental disorders, but within the normal range.
- Human actions that deviate from the accepted norms of morality and ethics, that is, immoral behavior. This view deviant behavior finds expression in crimes and misconduct. In most cases, individuals who are characterized by immoral acts, after their commission, are subjected to administrative, criminal liability. In case of minor violations of moral and ethical standards, social and medical workers are forced to work with a person.
Concept
Immoral behavior is a violation by a person moral principles through actions. Morality is a kind of requirements for people around and for oneself, which are considered correct during interaction. However, it should be noted that the concept of morality is rather vague. Since, for example, for one foul language is considered the norm, but for others it is outrageous and immoral.
An example of differences in different cultures- the concept of adultery in our country and in Japan. Married man who regularly cheats on his spouse with different women, causes us only negative emotions and indignation. In Japan, the opposite is true. The spouse has the right to come home in a state of alcoholic intoxication, in the company of geisha, and the wife will not only not make a scandal, but also thank the priestesses of love for accompanying, delivering the faithful to the family hearth. In Japan, the status of the head and earner of the family is extremely high.
In Japan, they have a favorable attitude towards same-sex marriage, which cannot be seen in European countries. The reason for this is the cult of the samurai, who on duty are obliged to abandon family ties. Therefore, it is believed that it was they who favored the development of homosexuality.
Forms of behavior contrary to morality
Immoral human behavior has the following basic forms:
- Addiction.
- Substance abuse.
- Prostitution.
- Law violation.
- Alcoholism.
- Suicide.
- Use of obscene expressions.
- Insults.
Immoral behavior: reasons
There are three main reasons for immoral behavior:
- Inequality on the social ladder. Mainly income affects the upbringing and behavior of a person. The less a person earns money, the greater the likelihood of his degradation. Due to disappointment with the level of his life, he tries to escape from reality with the help of alcohol or drugs. Poverty is a psychologically challenging ordeal.
- Education level. A person due to ignorance may simply not know about the rules of morality and ethics. Traditions, norms and rules must be passed on in society from generation to generation. Parents need to make the child understand from childhood what can be done and what is abhorrent to universal values and statutes.
- Environment. Undoubtedly, this reason is one of the fundamental ones. In many ways, a person's actions and thoughts depend on what and who surrounds him every day. The closest people have the greatest influence: family, friends, classmates, colleagues. If a person is often surrounded by persons with immoral behavior, and apart from them he sees nothing, then for him it becomes the norm. In such cases, in order to eradicate immoral acts, sociologists work with groups of people, and not with one specifically guilty person.
Behavior and law
As mentioned earlier, it is not uncommon for immoral behavior to be prosecuted. The punishment that threatens a person for acts contrary to morality ranges from the imposition of a fine to a prison term.
There is a concept of "immoral behavior of the victim". That is, when the person against whom the crime was committed behaved in an inappropriate manner and provoked another individual to commit an offense. In this case, the unmoral actions of the victim become a mitigating circumstance for the offender.