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AOF Principles of Finance

Lesson 11Ethics in Finance

Teacher Resources

Resource Description

Teacher Resource 11.1 Presentation and Notes: Effective Business Email (includes separate PowerPoint file)

Teacher Resource 11.2 Assessment Criteria: Response to an Ethical Scenario

Teacher Resource 11.3 Key Vocabulary: Ethics in Finance

Teacher Resource 11.4 Bibliography: Ethics in Finance

Copyright © 2009-2016 NAF. All rights reserved.

AOF Principles of FinanceLesson 11 Ethics in Finance

Teacher Resource 11.1

Presentation Notes: Effective Business EmailBefore you show this presentation, use the text accompanying each slide to develop presentation notes. Writing the notes yourself enables you to approach the subject matter in a way that is comfortable to you and engaging for your students. Make this presentation as interactive as possible by stopping frequently to ask questions and encourage class discussion.

This presentation covers the following topics:

• Why email is a useful medium for communication

• When not to use email

• The basic rules of email etiquette

Presentation notes



Email is short for “electronic mail.” It is one of the most commonly used methods of business communication. Research has shown that most employees spend at least two hours each day on email.

Some of the advantages of email:

• It is quick and easy. Tracking down someone by phone or in person could take you hours; sending an email takes minutes.

• It allows you to communicate with many people simultaneously. Companies can send out marketing emails to thousands of customers at once, and a manager can deliver information to his or her entire team at once.

• It leaves a trail so the history of a conversation can be tracked. Sometimes we need to revisit a discussion. Unless a phone call is recorded, it’s not possible to do this by phone or in person. Email lets you go back to the information hours, days, or even months later.

• It can be used 24 hours a day regardless of where the recipient is. For example, if your customer is in Japan and you are in New York, you can email that person at any time of day without having to worry about what time it is there and whether or not the person is available.

• It is efficient. Unlike phone and face-to-face discussions, small talk is not necessary; in fact, it’s not good etiquette to include unnecessary information, like small talk, in a business email.

Presentation notes



It is said that the French King Louis XIV’s gardener put up signs, or étiquets, to keep members of the nobility from walking on the grass. Nowadays, the word etiquette means the set of manners that are appropriate for a certain situation. There’s etiquette for dining, socializing, letter writing, email writing, and much more.

Etiquette is based on the situation you are in; business etiquette is different from appropriate behavior in your personal life. Think about it this way: you wouldn’t dress or talk or behave on a first date the way you would dress, talk, or behave when you’re just hanging out at home with your family. In the same way, how you write an email to your friends or family is not how you would write an email to your boss.

Presentation notes



There are disadvantages to using email:

• Email is not private. The recipient can easily forward your email to anyone. Not only that, but email may sit in somebody’s inbox, or even trash, for years for anybody to read. For confidential, private discussions, it’s best to use the phone or talk face to face.

• Once you’ve sent an email, it’s out of your control. If you send an angry email, you might regret what you said once you’ve cooled off, but there’s nothing you can do to take it back.

• Email is usually not appropriate for really big news—negative or positive. For example, imagine getting an email that says the president of the company just resigned. Or the company was bought out by a larger company. Or even that you are getting a promotion. Some news is so important that it requires a live person to deliver it so the recipients can interact, ask questions, and so on.

• If a matter is urgent, don’t use email. You can’t expect everyone to check email throughout the day, every day—particularly if that person is traveling, or if the person does not have a full-time job that requires being at a computer most of the day. If the matter is urgent, make a phone call or find the person to discuss the matter.

• Sometimes emails don’t get read. They end up getting caught in a spam filter or accidentally deleted, and your information never reaches the recipient.

• Just like big news, sensitive matters need a personal touch. If an issue with a customer or an employee requires prompt, sensitive action, use the phone or find the person for a face-to-face discussion.

Presentation notes



If you are using an email address for your job, your employer has a right to monitor how you use that email address and what kinds of emails you send.

Would you want your boss to see emails calling him an idiot? Probably not, unless you want to start looking for another job. Also, most companies frown on forwarded emails that include jokes or pictures, especially if the jokes or pictures can be interpreted as sexist, racist, homophobic, or biased. Employees who demonstrate sexist, racist, or homophobic behaviors are frequently disciplined and may even be fired.

In the same way, it’s important to think about what your email address says about you. Avoid things like [email protected] or [email protected], which will not create a good impression. Many businesses have standard email address conventions that require you to use a combination of your first and last name or your job title, specifically to avoid having embarrassing email addresses.

Since your emails represent your company, it’s important to pay attention to any and all policies your company has about using email. Some companies have a response-time policy that requires employees to respond to requests from customers within a specific timeframe, such as “Respond within 24 hours during regular business hours.” Businesses also often have rules about using work emails to send and receive personal information, like family pictures or orders from online shopping.

Presentation notes



The subject line is the first thing the recipient reads. A lot of people decide whether to open an email based on the subject line. So it’s very important to make it good! It should tell the reader what the email is about and set the tone—positive, negative, or neutral. A one-word subject line is usually too short; a good subject line is less than 50 characters long, which is about five or six words.

Presentation notes



Your greeting tells the recipient how formal your email is and creates rapport. Remember, an email can’t convey nonverbal cues. So the words you choose are even more important. A greeting is one of the few ways you can convey tone through your email. It’s not okay to skip a greeting in most business emails. An exception to this rule is this: when you are emailing back and forth in an ongoing conversation with somebody you know well, then it’s okay to skip a greeting after your first reply.

Presentation notes



Acronyms and emoticons are informal ways to express feeling and emotion through email. They can be very useful. However, they are informal and should not be used in most business communication. And when you do use them in informal emails, be sure you only use ones that are most commonly used and understood. Here are some examples:

FYI = for your information

FAQ = frequently asked question

BTW = by the way

IMO (or IMHO) = in my (humble) opinion

AKA = also known as

:-) is a smile

J is also a smile

:-( is a frown

Presentation notes



Don’t use all capitals in emails. It is bad nonverbal email communication. Even doing this for one word can be offensive. Instead, choose language that highlights or emphasizes a point, such as “very,” “especially,” and “particularly.”

Presentation notes



Write clear and concise sentences and paragraphs. You should avoid run-on sentences, repeating yourself, as well as lengthy paragraphs. People tend to skim or gloss over sections that seem overly long or complicated. If everything is kept short and clear, your message is more likely to get across to the reader.

Presentation notes



Research has shown that many people don’t read past the first paragraph, so make it a good one! This is where you tell the reader why you are writing. Start with an introductory sentence that sets a pleasant tone and provides context. Examples include:

“It was a pleasure meeting you yesterday.”

“In response to your email…”

“Thank you for contacting us regarding...”

“I really appreciate the help you gave our team at the meeting.”

“Our phone call raised some important points to go over.”

Presentation notes



And, of course, it is always important to use proper grammar, spelling, and punctuation. You want readers to focus on the point you are making, not any misspellings or grammatical errors. It’s usually a good idea to proofread your email before hitting the Send button.

Presentation notes



End your email on the same note you started it. This will leave the reader in a positive frame of mind. In very informal emails, it’s okay to skip a closing and just write your name. However, this should not be done in most business communications.

Formal closings include “Sincerely” or “Thank you.”

Informal closings include “Best” or “Thanks.”

Presentation notes



Consider the rules of business etiquette you just learned. How does this email follow, or not follow, those rules? Here’s an abbreviated list of rules:

• Write a clear subject line.

• Use an appropriate greeting.

• Avoid acronyms and emoticons.

• Don’t use all capital letters.

• Write clear, concise sentences and paragraphs.

• Use the opening to provide context.

• Be friendly and cordial, and don’t joke.

• Use proper grammar, spelling, and punctuation.

• Use an appropriate closing.

Presentation notes




Assessment Criteria: Response to an Ethical ScenarioStudent Names:______________________________________________________________

Date:_______________________________________________________________________

Using the following criteria, assess whether students met each one.

Met Partially Met

Didn’t Meet

The email presents a brief summary of the situation and the circumstances. □ □ □The email explains why the behavior involved is a breach of ethics and whether the behavior is also illegal. □ □ □The email provides an explanation of how the business should respond to the unethical behavior and how the business could prevent the problem in the future.

□ □ □

The email follows appropriate business email format and style. □ □ □The email is neat and legible, and uses proper spelling and grammar. □ □ □

Additional Comments:

_____________________________________________________________________________

_____________________________________________________________________________

_____________________________________________________________________________

_____________________________________________________________________________




Key Vocabulary: Ethics in Finance

Term Definition

ethical dilemma A situation in which a person is faced with two convincing yet conflicting alternatives for the solution to a difficult problem.

ethics A set of values relating to human conduct concerning the rightness and wrongness of certain actions.

ethics in business The process of applying a set of values concerning right and wrong to a business context, including the various moral and ethical problems that can arise in a business setting, and duties and obligations of those who engage in commerce.

lawfulness Behavior that is determined by social institutions and is enforced for the general good. It requires decision makers to resolve issues by applying legal rules.

morals Principles concerned with the goodness or badness of human action and character.

profit maximization The process by which a firm makes the most income.

values A person’s or a group’s deeply held beliefs.




Bibliography: Ethics in FinanceThe following sources were used in the preparation of this lesson and may be useful for your reference or as classroom resources. We check and update the URLs annually to ensure that they continue to be useful.

PrintBesley, Scott, and Eugene F. Brigham. Principles of Finance. Mason, OH: South-Western, 2006.

Keown, Arthur, John Martin, J.William Petty, and David F. Scott. Foundations of Finance. Upper Saddle River, NJ: Prentice Hall, 2002.

Random House Webster’s Unabridged Dictionary. New York: Random House, 1998.

Online“Business Ethics.” Wikipedia, http://en.wikipedia.org/wiki/Business_ethics (accessed June 9, 2016).

“Business Ethics Quotes.” Woopidoo! quotations, www.woopidoo.com/business_quotes/business-ethics.htm (accessed June 9, 2016).

“Discrimination.” WordNet Search - 3.1, Princeton University, http://wordnetweb.princeton.edu/perl/webwn?s=discrimination&o2=&o0=1&o7=&o5=&o1=1&o6=&o4=&o3=&h= (accessed June 9, 2016).

Federwisch, Anne. “Ethical Issues in the Financial Services Industry.” Markkula Center for Applied Ethics, Santa Clara University, http://www.scu.edu/ethics/practicing/focusareas/business/financial-services.html (accessed June 9, 2016).

Hannah-Jones, Nikole. "Housing Enforcement Group Sues M&T Bank for Discrimination." ProPublica, February 9, 2015, http://www.propublica.org/article/housing-enforcement-group-sues-mt-bank-for-discrimination (accessed June 9, 2016)

Huang, Andrew. “Who Kill the Bull of Wall Street? From the Ethical Viewpoint.” slideshare, http://www.slideshare.net/MBA_Community/subprime-under-ethics-980105-compatibility-mode (accessed June 9, 2016).

Huge Majority Believes Wall Street Bonuses Should Be Returned.” Business Wire, February 26, 2009, http://www.businesswire.com/news/home/20090226005022/en#.U1aQDVd7Skw (accessed June 9, 2016).

“International Business Etiquette, Manners, & Culture.” International Business Center, http://www.cyborlink.com/besite/ (accessed June 9, 2016).

“Mortgage-Backed Securities (MBS).” Investopedia, http://www.investopedia.com/terms/m/mbs.asp (accessed June 9, 2016).

Stolley, Karl and Allen Brizee. “Email Etiquette.” The OWL at Purdue, http://owl.english.purdue.edu/owl/resource/636/01/ (accessed June 9, 2016).

“The Ethics of American Youth.” Josephson Institute Center for Youth Ethics, https://charactercounts.org/wp-content/uploads/2014/02/ReportCard-2012-DataTables.pdf (accessed June 9, 2016).


http://owl.english.purdue.edu/owl/resource/636/01/

http://www.investopedia.com/terms/m/mbs.asp

http://www.cyborlink.com/besite/

http://www.businesswire.com/news/home/20090226005022/en#.U1aQDVd7

http://www.slideshare.net/MBA_Community/subprime-under-ethics-980105-compatibility-mode

http://www.propublica.org/article/housing-enforcement-group-sues-mt-bank-for-discrimination

http://www.propublica.org/article/housing-enforcement-group-sues-mt-bank-for-discrimination

http://www.scu.edu/ethics/practicing/focusareas/business/financial-services.html

http://wordnetweb.princeton.edu/perl/webwn?s=discrimination&o2=&o0=1&o7=&o5=&o1=1&o6=&o4=&o3=&h=

http://wordnetweb.princeton.edu/perl/webwn?s=discrimination&o2=&o0=1&o7=&o5=&o1=1&o6=&o4=&o3=&h=

http://www.woopidoo.com/business_quotes/business-ethics.htm

http://www.woopidoo.com/business_quotes/business-ethics.htm

http://en.wikipedia.org/wiki/Business_ethics

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