In a Short Essay, List Six Components of a Code

question 27

Essay

In a short essay, list six components of a code of conduct for financial institutions according to the publication "Corporate Codes of Conduct: Guidance to Implementing an Effective Ethics Program."

Recognize the significance of prioritizing customers based on profitability.

Understand the principles of delivering and establishing customer value for building good customer relationships.

Understand the concept of fraudulent misrepresentation in contract law.

Recognize and evaluate scenarios of undue influence as they relate to contractual agreements.

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Definitions:

Operating Income

This metric reflects the profits earned from a company's core business operations, excluding non-operating income and expenses.

Cost Of Capital

The essential return rate an enterprise has to produce on its investment activities to sustain its market assessment and appeal to investors.

Cost Of Capital

The essential profit ratio a company is expected to reach in its investing endeavors to keep its marketplace value and attract financial backers.

Securities

Financial instruments that represent an ownership position in a publicly-traded corporation (stock), a creditor relationship with a governmental body or a corporation (bond), or rights to ownership as represented by an option.