What are ethics and its importance in business today?
Ethics is “a system of moral principles”1 and depends on each individual culture of what it’s considered ethical. Ethics is an important part of every business because following the principles of moral gives a promising image of the company to stakeholders. Moreover, ethics, legalities and other situations are what drive personnel to make the right decision.
What was the case about? Bank New York (BNY) Mellon an “Investment company providing investment management, investment service and wealth management”2 did not comply with the fiduciary duty to benefit their clients in foreign exchange rates. As a result, according to federal and state officials allegations3, for about 10 years BNY …show more content…
In addition, a few months later BNY Mellon agreed to pay $180 million for additional foreign exchange settlements. According to Jean Eaglesham and Michael Siconolfi the Standing instruction service that BNY Mellon offers foreign exchange transaction, is the path that Bank of New York Mellon used to take advantage of their clients3. According to BNY Mellon website Standing instructions is a service that transfers some risks of a foreign exchange transaction from the client to BNY Mellon.5 In addition it depends on the custody bank to “pick the exchange …show more content…
4 they have also modified the way that they profit from the foreign exchange transactions by offering a fixed spread.4 BNY Mellon has made it clear that they do not have fiduciary duty with the clients using their Standing instructions services for foreign exchange transactions, according to the BNY Mellon website. In addition, BNY Mellon still offers the standing instruction service, according to them is because their clients “have made it clear” that they like the service.4
How could this case been avoided?
BNY Mellon could have avoided this scandal by complying with their legal and ethical standards of the company. Therefore, BNY Mellon should have
What can we learn from the case?
This case show that it doesn’t matter how long a company does their “crimes” they will get caught, so it’s better not to do it. Incidents like these will tarnish their image forever, now clients will think twice and ask themselves …does this bank really care about my financial well-being? Which theoretically they should, client should feel inclined to leave their money there where they feel that their money will be
Ethics is “a system of moral principles”1 and depends on each individual culture of what it’s considered ethical. Ethics is an important part of every business because following the principles of moral gives a promising image of the company to stakeholders. Moreover, ethics, legalities and other situations are what drive personnel to make the right decision.
What was the case about? Bank New York (BNY) Mellon an “Investment company providing investment management, investment service and wealth management”2 did not comply with the fiduciary duty to benefit their clients in foreign exchange rates. As a result, according to federal and state officials allegations3, for about 10 years BNY …show more content…
In addition, a few months later BNY Mellon agreed to pay $180 million for additional foreign exchange settlements. According to Jean Eaglesham and Michael Siconolfi the Standing instruction service that BNY Mellon offers foreign exchange transaction, is the path that Bank of New York Mellon used to take advantage of their clients3. According to BNY Mellon website Standing instructions is a service that transfers some risks of a foreign exchange transaction from the client to BNY Mellon.5 In addition it depends on the custody bank to “pick the exchange …show more content…
4 they have also modified the way that they profit from the foreign exchange transactions by offering a fixed spread.4 BNY Mellon has made it clear that they do not have fiduciary duty with the clients using their Standing instructions services for foreign exchange transactions, according to the BNY Mellon website. In addition, BNY Mellon still offers the standing instruction service, according to them is because their clients “have made it clear” that they like the service.4
How could this case been avoided?
BNY Mellon could have avoided this scandal by complying with their legal and ethical standards of the company. Therefore, BNY Mellon should have
What can we learn from the case?
This case show that it doesn’t matter how long a company does their “crimes” they will get caught, so it’s better not to do it. Incidents like these will tarnish their image forever, now clients will think twice and ask themselves …does this bank really care about my financial well-being? Which theoretically they should, client should feel inclined to leave their money there where they feel that their money will be