The finance department of any firm or institution plays a significant purpose in any decision making, operations and the running of a firm. Its major duties are to give financial advice to the CEO, other managers and customers. The advice helps them in making healthy decisions in their businesses.
The sector ascertains any decisions made by a firm leads to the profitability of the firm and growth of the company. As a division manager of the athletic team, the finance department will give information on the previous sales and provide a detailed report on how the products in the sale were fairing in any of the markets. This information is useful in guiding the division manager in the decision of making on new opportunities (Vengel 45).
This information through data mining skills in the information system would help assess the opportunities presented by the different markets. From the information gained the marketing department can tell which product will require sales promotion or product awareness campaign.
The data on sales and revenue presented by the accountants will assist in calculating the net profit made from the sales. Information on the profits will guide in allocating a given amount of money to each sector of the company through effective budgeting. The accountants will give relevant information on the expected expenditure and the expected gain from all the investments made by the company in all fields.
The finance department will assist in evaluating the business opportunities by carrying out an economic evaluation. This will consist of profit statements, cash flows and income statements evaluation guided by the business plan provided. The business plan will show the product/service to be provided, a list of suppliers expected to provide the materials and the method used for acquisition. The market targeted and the business operation will also be discussed by the board of shareholders of the company.
Ethical issues from any finance department of an industry affect all the shareholders of the business. Many people think that the finance sector is the most unethical sector of any industry. This could be true considering that crucial decisions in most firms are made by the finance department.
One of the ethical responsibilities of the finance department is to protect its clients by ensuring that they comply with the various tax laws. This helps clients to adhere to the state laws and rules by the finance maintaining their independence in making proper ethical decisions. The finance department should not equate legal behavior or decisions with moral behaviors. Most decisions may be legal but that does not make them ethical.
To the employees, the business should not make profits while exploiting their employees. This means that they should not cut the employee’s benefits. This come as a result of the company needs conflicting with the professional duty. They should balance the employee’s needs with those of the company.
The customer must also be considered in any ethical decision making process (Clifford, 203). If consumers think that the finance sector ignores its ethical responsibility, then they move to other businesses. Decisions made by the finance department should rarely affect the costumer, if possible.
The business should offer enough information on their services and products to the customer. The community also should be considered before making decisions avoid unethical issues from the business. The community provides the necessary infrastructure to any business, so the principal finance decisions should cater for the community needs too.
As a division manager, a good relationship with the finance officers would be maintained by willing to learn the concepts and skills used by the accountants. The relationships can be enhanced by serving others and helping out without any excuses.
As a manager, one ought to know how to persuade and influence other employees to assist you hence helping you to achieve goals. The skills learnt would help in future decision making and implementing policies that will earn profits for the company. The finance sector will also help one acquire leadership skills and utilize them in the manager post (Audi, 102).
Audi, Robert. Business Ethics and Ethical Business. New York: Oxford University Press, 2008, Print.
Clifford, Bernard. Test Policy and the Politics of Opportunity Allocation: The Work Place and the Law. London: Springer, 1989, Print.
Vengel, Allan. The Influence Edge: How to Persuade Others to Help Achieve Your Goals. San Francisco: Berrett-Koehler, 2001, Print.