Itis not ethical for tobacco companies to sell a product that is known to beaddictive and a danger to the health of its users.
Financial managers areexpected to be conversant with business ethics, what they are and theirsignificant impact on the business. In the event that the company gainsnegative publicity because of its product lines such a s tobacco, then afinancial manager’s principle task becomes to save the business without loosingthe company. Carlos Ghosn acknowledges that it is an extremely delicate role toprotect the identity of the company at the same time the self-esteem of thepeople working in it (Parsons221).A financial manager needs a precarious balancing act to be able to make changeand restore the company through making relevant changes to safeguard itsidentity.Afinancial manager is ethically responsible for safeguarding the employer’sconfidentiality while operating within the set laws.
When this situation is lookedat from a legal perspective, if the financial manager was aware that thecompany was breaking the law by producing substances that are of a destructivenature to the environment and the human body, then he would be held accountableand responsible. Therefore, before officially responding to this issue, thefinancial manager should look for any laws that the company may have knowinglycrossed before addressing the public. There have been many ethical disasterswhere financial managers have plunged their companies to the ground because ofnot researching on the ethical dilemma being faced (Schaltegger, and Marcus 250).For instance, it will take years for Wells Fargo to recover because of theconflicting and contradictory responses given by the management when trying tosolve their systemic corruption scandal.
Thefinancial manager is responsible for compliance, hence he or she shouldinvestigate and track business procedures since it was set up to rule out any suspicionof their products being a danger to human health. Approvals from various healthorganizations should shield the business and its operation unless the terms arechanged (Parsons 320).