ETHICS AND PROFESSIONALISM IN CORPORATE CREDIT SYSTEM FOR SUSTAINABLE ECONOMIC GROWTH
Authors:
Engr. Dr. Amieye-ofori Valentine Felix
Abstract:
This paper examined the import of sound ethical and professional practices in the financial sector with an emphasis on credit system management in view of the consequences of unethical and unprofessional practices in the sector. Unethical practices were found to be the cause of many corporate bankruptcies such as the celebrated Enron failure, and the potential of causing reputational risks, and loss of business opportunities. Credit unarguably has been the lifeblood of any economy as back as far as 3500 BC, and with increasing disruptive business environment caused by technological evolution and competitive market space, those involved with dispensing and handling credits sometimes find themselves in unethical practices in order to deliver dividends to shareholders. However, in the midst of these challenges, and technological disruptions, it has become imperative for those working in the financial and other non-financial credit systems to be very creative in order to catch up with the ever-changing business environments within the sector. They must, without doubt, be very dexterous with a “Fit-for All” mind-set in a globalized financial village. The paper identified some causes of unethical practices in organizations, of which self-centeredness, greed and the desire to outshine the competition were the primary culprits. As a remedy, the paper recommends the need for organizations to set up a well-thought-out and structured corporate-wide and all-inclusive ethical codes that involve all stakeholders from the board to employees. It further recommends that such codes must be strictly enforced under a leadership-by-example model, with incentives to encourage good practices, and punitive measures for erring employees. Again, the business environment must be open and transparent to allow employees unfettered opportunity to speak up on any observed unethical practices without the fear of intimidation. Also, the government should form collaborations, just as the CBN with the Bankers Committee to confront this monster in the financial sector if they must avert another financial crisis. Finally, given that, ethics deals with the morality of humans, the paper further recommends the involvement of all segments of society starting with the family, schools, religious houses, non-governmental agencies, and the timely regulatory interventions of government, and of course the professional bodies within the economic and financial sectors.