Chapter 14: Ethical Issues in Financial Markets

In the wake of the financial crisis of 2007–2008, new attention has turned to financial markets. The added scrutiny focuses on the ethical framework in which market participants engage. New regulations have emanated from Washington and other centers of commerce, to mixed reviews. Yet many of the most critical ethical issues that surround financial markets are far from the forefront of the public’s attention and are subject to virtually no scrutiny. Often, the cases that have been at the center of popular controversy gain fleeting attention, but the public tends to overlook equally troubling cases that may have impact on smaller segments of society, or which have embedded minefields that have yet to be fully understood. Thus, in these cases particularly, it is incumbent upon executives and practitioners to take notice of the ethical issues implicit in the market.