Reflection

CHRISTIAN ETHICS IN FINANCIAL ANALYSIS 1

CHRISTIAN ETHICS IN FINANCIAL ANALYSIS 2

Christian Ethics In Financial Analysis

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Brief Introduction

Fundamental analysis is a method of examining firms, initiatives, budgets, and other financial planning and analysis operations to assess their effectiveness and suitability. Generally, macroeconomic analysis is used to examine whether an organization is steady, viable, fluid, or lucrative enough to sustain a monetary investment. The main duty of a financial analyst is to comb over data to uncover possibilities or evaluate consequences for corporate choices or plans offer. Financial analysts can operate in both junior and senior roles within a company, and it is a specialty that often extends to further career prospects.

Thesis

There is a long history of Christian ethics being applied to business and economics. Since the thirteenth century, there have been notable developments in this area, as well as in the previous century. A set of virtues relevant to economic activity emerges from the interplay between Christian faith and rationality. Christian spirituality has been a part of Christianity since its inception, but it has only recently been applied to current business practices. Articles such as this one aspire to make a contribution to the advancement of Christian ethics and spirituality among the world's major businesses (Alhazmi, 2019). We begin with a brief history of Christian ethics and spirituality in business and a look at where things stand right now.

Body

Truth and falsehood, good and wrong, are the subjects of ethics. A study of human morality, human nature, and their attempts to distinguish between right and wrong is thus the focus of ethics. Because it affects everyone in the town, this is a public issue. Priority should be given to the well-being of the general population rather than any individual's self-interest. Public interest means acting in the best benefit of all parties involved. In accordance with the principle of ethical relativism, this action is also unethical (Duska, 2018). An ethical society is defined by the actions of its people, according to this notion. It is unethical to do anything that goes against the accepted norms and values of that society. Revenue management is another area where ethics come into play. As long as the revenue team has been increasing revenue, they have ignored the public's objections. The notion of profit vs reputation states that an institution should focus on the long-term aim, which is attained by maintaining the company's reputation. This can be done by an institution that places more importance on the company's reputation than on producing money.

The ethical and moral manner to conduct oneself is defined as ethics. It is the responsibility of finance managers to establish and maintain all financial records, such as investment plans, managing direct cash operations, and overall accounting operations. To be a successful financial manager, one must adhere to the highest ethical standards. They are expected to adhere to a set of rules and guidelines. To be a good financial manager, one must maintain a professional demeanor and avoid endorsing personal interests (Gutsche, 2019). They must be able to maintain confidentiality at all times and avoid any conflicts of interest that could jeopardize the investigation. There must be complete, correct and understandable information in order for the information to be made public. All of these things need to be done in good faith and in accordance with the laws of the land.

It might be difficult, yet rewarding, to live and work according to Christian beliefs. However, it is possible to be both a good Christian and a successful businessman.. The billionaire is a firm believer in the value of morality and honesty in business. Hold tight to your values and treat your employees, customers, and even competitors the way you want them to be treated while you go after your own goals and dreams. If you're still unsure about how to put Christian beliefs into practice in your business transactions, consult the Bible (Baselga-Pascual, 2018).

All of one's actions should be based on honesty. If you want to bring your Christian principles to the workplace, this is the best way to do it. In addition, it serves as a model for others and ensures uniformity in the office. Being able to rely on the word of others increases your chances of development, opportunity, and colleagueship as your profession progresses.

While it may be natural to care for the employees, it is also necessary to be fair in your commercial dealings with your competition. There are times when it's difficult to do what is right, but a good reputation and long-term business ties are worth the effort. It is not uncommon for companies that view their rivals as adversaries to spend a fortune in courtrooms instead of in the boardroom.

A financial manager's job is in jeopardy when he or she is aware of any unethical conduct that may contravene the law. Then legal action will be taken for the violation of the law. This can be challenging for a finance manager since they don't want to disobey the law, but they also don't want to break the employer's trust. Because of this, it is possible that an employer's desire to maximize profits will lead to a decrease in employee morality (Ibrahim, 2020). To file a government complaint, the finance manager must first contact their company to express their displeasure. Employees won't have to worry about losing their jobs if they bring attention to a problem.

To put it another way, financial reporting is critical because financial statements are the result of the managerial accounting, a formal manner of presenting financial information that may be used by a range of parties in making choices about a company. Monthly, quarterly, and annual financial reports are essential for any company. Shareholders and the general public may see exactly how an organization is running thanks to this form of communication. For a manager to accomplish the company's objectives, financial reporting is a necessary.

Any managerial choice must be based on factual information gathered about the organization. There are many decisions to be made by financial managers in order to identify the optimum asset composition and capital structure for the long term, and they are constantly confronted by the fact that their job is to represent shareholders. Without proper organization, financial managers typically face issues with the need to incorporate several financial management components into a single, well-coordinated system. Keeping track of fraud and other criminal attacks is also a function of financial statements. Financial reporting is required by law. Using financial accounts and balance sheets, a company may forecast its future operations and income statements.

When financial information is reported, it can be used as a form of security. According to the Sarbanes- Oxley Act, which was enacted into law in 2002, the goal is the protection of shareholders who purchase stock in publicly traded firms against accounting fraud. Investors and the general public can be protected against company financial fraud and mismanagement thanks to the law's encouragement of openness in financial reporting and corporate governance.

It doesn't matter what else the Bible is, it's an excellent source of financial advice. The Bible has numerous stories and sayings that explain fundamental financial themes that are still applicable today. Proverbs 23:27 tells us that. When applied to today's world, this adage suggests that you must prioritize your financial resources. Before one spend money on luxuries, be sure you have saved enough to cover the necessities what one need to keep yourself alive and able to work. To put it another way, save enough for all of your upcoming expenses before one goes shopping for new clothes.

Conclusion

Many Christian scholars have contributed significantly on ethics in business and economics, not only in the last few centuries, but for millennia as well. A lot of the debate about corporate ethics has come from Christian institutions, primarily the Roman Catholic Church, as well as solitary academics. Important concepts extensively utilized in business ethics have their origins in the Christian faith or have gained significant attention there (Van Buren III, 2020). Finally, financial reporting is mandated by law. It is a rule that must be adhered to in order to safeguard a business. It also serves as a roadmap for the company's objectives. Financial reports are used to make decisions. If a corporation keeps its reports up to date, it will always be ready for unexpected audits or last-minute decisions. Sarbanes-Oxley Act safeguards financial reports from any method. It safeguards the interests of the corporation and its shareholders. It safeguards the company's and its employees' decisions.

References

Gutsche, G. (2019). Individual and regional Christian religion and the consideration of sustainable criteria in consumption and investment decisions: An exploratory econometric analysis. Journal of Business Ethics, 157(4), 1155-1182.

Duska, R. F., Duska, B. S., & Kury, K. W. (2018). Accounting ethics. John Wiley & Sons.

Baselga-Pascual, L., Trujillo-Ponce, A., Vähämaa, E., & Vähämaa, S. (2018). Ethical reputation of financial institutions: Do board characteristics matter?. Journal of Business Ethics, 148(3), 489-510.

Ibrahim, T. A. F. T., Hashim, H. A., & Ariff, A. M. (2020). Ethical values and bank performance: evidence from financial institutions in Malaysia. Journal of Islamic Accounting and Business Research.

Gutsche, G. (2019). Individual and regional Christian religion and the consideration of sustainable criteria in consumption and investment decisions: An exploratory econometric analysis. Journal of Business Ethics, 157(4), 1155-1182.

Van Buren III, H. J., Syed, J., & Mir, R. (2020). Religion as a macro social force affecting business: Concepts, questions, and future research. Business & Society, 59(5), 799-822.