EiF Curriculum Overview
The teaching materials assembled as part of this Ethics in Finance (EiF) project curriculum include recommended readings, classroom activities, links to videos, case studies, and teaching notes. They are designed to be used in colleges and universities at both the undergraduate and graduate level. The full curriculum consists of four modules: M1 Philosophical Perspectives on Ethics and Finance; M2 Foundations of Ethics in Finance; M3 Behavioral Challenges to Ethical Action; M4 Ethical Decision Making in Practice.
Module 1
The Ethics in Finance initiative begins in Module 1 (Philosophical Perspectives on Ethics and Finance) by reviewing the philosophical foundations of ethics and giving an overview of ideas related to ethics within business and finance. It includes a brief introduction to perspectives of Eastern and Western thought based on virtue ethics, and other schools of thought, including deontology, utilitarianism, and Adam Smith. The Madoff case study provides a focus for linking theory to practical application.
Module 2
In Module 2 (Foundations of Ethics in Finance) the initiative turns to the basic ethical values that support well-functioning financial markets, professionally rendered financial services and responsible financial management. The Abacus case study is used to help deepen the students’ understanding of theory and application. The basic ethical values in these three areas include: honesty, welfare, justice/fairness, respect, duty and integrity. The module also provides insight in to the nature of ethical decision making and the challenges faced by individuals and firms in dealing with ethical challenges in the area of finance.
Module 3
Module 3 (Behavioral Challenges to Ethical Action) turns to illuminating how psychological factors (influences, biases) can affect ethical decision making, drawing on the insights of behavioral scientists like Daniel Kahneman and James Rest. The module begins with a short history of financial market scandals and concludes with small case studies based on real-world scenarios presented as classroom exercises to help students understand and apply their knowledge.
Module 4
Module 4 (Ethical Decision Making in Practice) follows by introducing frameworks to help guide ethical decision making and actions (such as articulated professional principles and codes of ethics and standards), and an opportunity for students to practice their skills through further short in-class case study exercises. These materials also include an introduction to CFA Institute's Code of Ethics and Standards of Professional Conduct, which will prove valuable to instructors who wish to integrate them with their own institution's focus on preparing students for CFA exams.