Explain the relevance of responsible stewardship and integrity in the context of financial management.

Asked on by soman2006

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readerofbooks | College Teacher | (Level 2) Educator Emeritus

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This is an incredibly important question. When you are dealing with other people's money, as happens in financial institutions, what is central is not only financial acumen, but also integrity and and honesty. The scandals of the last few years shows this point all too well. Think of how many people lost money with Bernard Madoff. When we add things like people's life saving and pension, financial integrity is even more important.

In light of this, people in finance must be transparent. They must divulge risks, assests, who stands to gain, and anything else that might have a bearing on the finaces of their clients.

Some in the finance realm has even made the case that bankers should not get bonuses until after a few years to see if their investments made any good sense. This will prohibit people going for merely short term gains.

Finally, you use the word, "stewardship," which is great. Finance managers should invest other people's money as if it were their own and not only care about commissions.


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