Purpose:
Demonstrate capacity to recognize and evaluate ethical dimensions of financial decisions and effects on stakeholders
Background:
Practice standards are built upon the pillars of ethics, disciplinary rules, and regulatory priorities (e.g., FINRA). Practice standards are overarching guidelines that in effect assist individuals working inside a much larger industry. Whether an individual financial advisor or a partner in a large financial planning firm, all ‘should’ follow and adhere to these guidelines, which creates a myriad of questions. What ethical issues surround financial planning firms trying to optimize profits while also trying to maximize client portfolios? How does a client know that their respective financial advisor/planner is making decisions in their best interest? How does a financial planning firm owner ensure their profits are maximized for long run sustainability? What is the role that financial planners serve in potentially mitigating ethical issues ensuring positive corporate governance performance outcomes?
Many different avenues can be explored to identify potential ethical issues existing within the operating framework and dynamic environments of financial planning. Part of the challenge of this assignment is to identify an ethical issue (potential or existing) within the financial planning industry and its relation to corporate governance & ethical frameworks. There are a host of ethical frameworks, and, three commonly utilized and referenced are: The Blanchard-Peale Framework, Markkula Center Framework, & The Issue Contingent Model of Ethical Decision Making. Should you need additional information on ethical frameworks, search the WT Library Website, the Helpful Links area of the course, as well as other academic/scholarly sources as applicable.
Instructions:
Once an ethical issue has been detected, explore and write about how the financial planner and the financial planning industry utilizes corporate governance, for example, CFP® Board of Directors Financial Planning Practices Standards and fiduciary rules to mitigate ethical issues. Thus, focus on the following:
1) Demonstrate your ability to describe the ethical issue in detail and ascertain exactly what must be decided,
2) Demonstrate your ability to compare and contrast multiple ethical frameworks in describing the legitimate rights and responsibilities of multiple stakeholders within business activities, and
3) Formulate an appropriate plan of action reflecting the benefits and risks of action and multiple stakeholder considerations in your analysis.
You will construct a written work with the following sections (each will be scored accordingly): Introduction, Detection, Stakeholders, Action, Conclusion.
Format:
1) Responds fully to what the assignment asks–A) Demonstrates ability to describe the ethical issue in detail and ascertains exactly what must be decided; B) Demonstrates ability to compare and contrast multiple ethical frameworks in describing the legitimate rights and responsibilities of multiple stakeholders within business activities; C) Formulates an appropriate plan of action reflecting the benefits and risks of action and fully integrates multiple stakeholder considerations in the analysis;
(2) Presents a manifest topic statement containing the issue to be analyzed and the position to be taken;
(3) Exercises good critical thinking that is clear, logical (coherent & relevant), deep, broad, and discriminating;
(4) Expresses its purpose clearly and persuasively;
(5) Invokes and uses disciplinary facts correctly;
(6) Provides adequate supporting arguments with reasons, evidence, and examples;
(7) Is focused, well organized, and unified;
(8) Uses direct language that is appropriate for the audience;
(9) Invokes discerning sources when appropriate; (
10) Correctly documents and cites sources via APA standards;
(11) Is free of errors in grammar, punctuation, word choice, spelling, and format; and (12) Displays originality and creativity in realizing items (1) through (9) above.
Grading Rubric:
TRAIT
UNACCEPTABLE
ACCEPTABLE
EXEMPLARY**
Detection
Little or no recognition of the ethical issue and unable to ascertain what must be decided.
Demonstrates ability to recognize the ethical issue and ascertains what must be decided.
Demonstrates ability to describe the ethical issue in detail and ascertains exactly what must be decided.
Considers Stakeholders
Inability to describe the legitimate rights and responsibilities of multiple stakeholders within business activities.
Demonstrates ability to use one or more ethical frameworks in describing the legitimate rights and responsibilities of multiple stakeholders within business activities.
Demonstrates ability to compare and contrast multiple ethical frameworks in describing the legitimate rights and responsibilities of multiple stakeholders within business activities.
Chooses an Action
Summary
Has difficulty identifying appropriate course of action among alternatives. No integration of actions across multiple stakeholders.
Formulates an appropriate plan of action that partially integrates multiple stakeholder considerations in the analysis.
Formulates an appropriate plan of action reflecting the benefits and risks of action and fully integrates multiple stakeholder considerations in the analysis.
