We're using cookies, but you can turn them off in your browser settings. Otherwise, you are agreeing to our use of cookies. Learn more in our Privacy Policy

Bridge over ocean
1 May 2004 Financial Analysts Journal Volume 60, Issue 3

Ethics and Unintended Consequences

  1. Robert D. Arnott

The gravity of the ethical lapses and illegal behavior confronting the financial community is undeniable. Equally important is that in dealing with the problems, the community avoid harmful unintended consequences of actions to eliminate the problems. Arnott raises questions about some of the rules and legislation already proposed, the capricious enforcement of some rules, and vast areas (such as aggressive accounting) that are almost being ignored. He then calls on the financial community to forestall heavy-handed laws and rules by taking a stand for ethical business dealing. The community can, for example, make unethical conduct unprofitable by selling holdings in companies that engage in unethical activities or accept ethical ambiguity.

Read the Complete Article in Financial Analysts Journal Financial Analysts Journal CFA Institute Member Content