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In this instance, it was noted that an individual is employed as a financial analyst at the largest financial advisory and analysis organization. This business often generates specific research articles at both the industrial and academic levels, which substantially impacts the overall financial market. Furthermore, Kim Watts, a prominent researcher at this organization, has extensive knowledge and ability in forecasting the financial performance of big companies, supplying this data to certain institutional investment firms. However, the analyst notes specific inaccuracies about the data supplied by Kim for further research, since it does not adhere to fundamental statistical assumptions, and the origin of this data remains unidentified. Furthermore, the confidentiality agreement that prohibited Kim from disclosing this information was also deemed odd. Furthermore, the boutique investors often presented presents to Dr. Kim.
The individual must handle confidential data that is often not publicly shared. Kim Watt, her team leader, disseminates raw data to the university's finance and accounting departments at elevated subscription fees to generate more revenue for the company. The analyst routinely performed data checks and concluded that the data supplied by Dr. Kim did not meet the fundamental statistical assumptions. The analyst inquired with Kim, but she declined to reveal the source of the data, citing stringent confidentiality agreements as the reason for her refusal. This private agreement prohibited her and her assistant, David Smith, from revealing the actual data or the identify of the business from whom it is being collected. The analyst spoke with the firm's legal team about the non-closure and secrecy agreements, discovering many contradicting dates, atypical terms, and evidence indicating that the terms of the confidentiality arrangements had been considerably altered. Furthermore, specific rumors about the intimate relationship between Kim and her aide were also acknowledged. Furthermore, the insights and suggestions derived from the study examination of this data empowered some top-rated investors to dominate their respective marketplaces. Kim had received specific presents from boutique investors and saw this as an effective method for cultivating long-term relationships with prominent investors.
The main stakeholders in the case study are Kim Watts, shareholders, institutional investment firms, leading companies, financial analysts, regulatory agencies, and workers of the company, particularly those on Kim Watts's team.
Ethical problems have been identified inside this financial advisory and analysis organization. The primary ethical concerns in this case were professional competence, due diligence, and professional conduct. The notion of professional competence and due care imposes specific requirements on all professionals in the accounting and financial sectors, as outlined below:
Consequently, it was established that experts must comply with all requisite technical and professional requirements for the service and operate in the best interest of their customers. Kim Watt acted in the best interest of the customer, and every advise supplied by her team proved to be lucrative and beneficial for these clients. It was revealed that the financial analyst who joined Kim Watts' team identified discrepancies in the data supplied by Kim Watts for further examination; specifically, the data collected by Kim Watts and her assistant did not conform to fundamental statistical assumptions. Furthermore, when the analyst inquired about the source of the data, Kim declined to provide both the data and its source, citing stringent non-disclosure and confidentiality agreements. This suggests that she has shown unethical behavior by failing to adhere to professional and technical norms, such as the fundamental statistical assumptions. Therefore, she may be seen as professionally inept in this regard. She has shown unprofessional behavior, which is an ethical concern. As previously noted, she has not adhered to the requisite laws and standards during data collection, which contravenes the principles of professional conduct.
The norms, values, principles, and codes that have been violated in the provided case study are outlined below:
It has been noted that Kim Watts has many significant alternate courses of action available. The main different courses of action accessible in the provided case study are outlined below:
Alternative 1: Kim Watts may provide the real data and its source to ensure reliability and mitigate any legal repercussions stemming from non-disclosure of this information. Furthermore, she is capable of adhering to the fundamental principles for collecting the necessary data to uphold professional conduct.
Alternative 2: Kim Watts may maintain the confidentiality of the material and its source to prevent any potential lawsuits against her and the firm for violating the non-disclosure agreement.
Alternative 3: Kim Watts may get legal counsel from either the legal team or the monitoring body about this issue to achieve an appropriate resolution in accordance with basic ethical norms.
Seeking legal counsel from the firm's legal team or the regulatory authority is deemed the most effective line of action for Dr. Kim Watts. This will allow her to adhere to almost all essential ethical principles. Accept confidentiality, as Dr. Kim Watts may need to reveal the agreement to the legal team or relevant parties to get the best feasible outcome. Consequently, the financial analyst may articulate her viewpoint and advise Dr. Kim Watts to get legal counsel over the whole issue to ensure ethical conduct.
If Kim Watts discloses the actual data and its source, she would violate the concept of secrecy due to her stringent non-disclosure agreements, perhaps exposing herself to legal action from the affected party. However, if she fails to reveal this information, there is a significant likelihood that she may face litigation in the future owing to the inadequacy of such data and its source. Furthermore, if she seeks legal counsel from the legal team or oversight entity, she will adhere to the majority of ethical principles; nonetheless, she may encounter specific confidentiality concerns.
Upon thorough analysis of the situation, it has been determined that Dr. Kim will be consulted to seek legal counsel from the firm's legal team or the code monitoring body to address the matter and identify the most ethical course of action.
It is essential for anybody involved in financial services to adhere to and operate in accordance with the core ethical principles outlined in the FASEA and APES 110 Code of Ethics. These basic principles typically provide the requisite level of conduct for the members (Wijesinghe 2017). The Accounting Professional & Ethical Standards Board Limited (APESB) is the governing authority that produced the APES 110 Code of Ethics for Professional Accountants (Henderson et al., 2015). The primary function of this monitoring entity in the specified case study is to detect the infringing acts of Dr. Kim occurring inside this organization. It is essential for the regulatory agency to monitor the activities occurring inside this company to implement necessary measures to halt such conduct. Furthermore, the monitoring entity has an additional responsibility in this instance, which is to assist the relevant enterprise or member in adhering to the established core ethical principles outlined in the APES 110 Code of Ethics (Martinov-Bennie and Mladenovic 2015). The code monitoring body is primarily responsible for addressing ethical concerns of company members and identifying effective methods for adherence to the fundamental code of ethics.
The preceding discussion indicates that Kim Watts is in significant difficulty owing to her behavior while directing a research team at a prominent financial advisory and analysis business. She has been identified as violating fundamental ethical principles, including the principles of honesty and professional behavior, according to the FASB and APES 110 Code of Ethics. Consequently, the aaa method for decision-making facilitated the identification of the optimal course of action for the individual, Kim Watts, to adhere to the fundamental concept of ethics. The recommended course of action in the case study was to seek the opinion or legal counsel from the legal adviser or relevant authority to eliminate unethical behavior and adhere to the established code of ethics. This course of action is the most successful of all possible options, since it enables her to adhere to the essential principles of ethics without intentionally violating any of them. This type of action will also allow Kim Watts to evade any potential legal actions against her or the corporation.
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