Increasing numbers of business schools are requiring their finance majors to take courses in ethics. Despite the substantial list of well-respected business schools that have had long-standing policies requiring their master degree candidates to study ethical issues, there are students who question this requirement. After all, ethical beliefs and finance are two disparate subjects; it isn’t like an MBA student is seeking to be a spiritual leader or preparing for a career in ministry. So what’s the deal with the mandatory ethical coursework? Read on for a discussion of why so many business schools emphasize this topic in their degree program requirements.

US Law Dictates Ethical Standards That Financial Industry Professionals Must Uphold.

US financial law has many nuances that would not necessarily be obvious to the average industry professional. Someone has to educate the industry’s incoming leaders about what the current ethical standards are, and it’s only logical that business schools are stepping up to tackle this challenge.

Some Examples of Ethics-Based US Regulations, Laws and Rules Affecting the Country’s Business and Financial Markets:

  • The US Senate places restrictions on insider trading that might not be obvious to the uneducated. Coursework can enlighten aspiring professionals on the intricacies of these important ethical restrictions.
  • The US Federal Trade Commission (FTC) has defined numerous rules intended to protect the country’s consumers from unethical business dealings. One example is the Safeguards Rule, which deals with how financial institutions secure and use their customers’ sensitive personal information.
  • The US Federal Deposit Insurance Corporation (FDIC) dictates that financial institutions must communicate written corporate codes of conduct. They mandate that each corporate policy must address how the institution will handle issues such as keeping confidential information safe, maintaining honest and accurate records and prohibiting members of their staff from accepting bribes.
  • The Bureau of Consumer Financial Protection has enacted rules and standards regarding ethical conduct for their employees.

The Public Expects Their Financial Advisors, Accountants and Financial Analysts to Be Ethical and Trustworthy.

Nobody wants to hire an unethical financial advisor, accountant or financial analyst. When it comes to hiring professionals who will handle their money, most investors diligently seek out candidates who have reputations for integrity and fair, honest dealings with their clients. College coursework can help aspiring money managers understand the ethical standards their future clients will hold them accountable to.

College Coursework Should Prepare Students for All Aspects of Their Careers.

Studying ethical standards in a business school classroom will not magically transform an unethical student into an ethical one, but it can at least have the affect of making all the students aware of the industry’s expected ethical standards and best practices. This is one of the most important aspects of an aspiring financial industry professional’s career. Many industry experts feel strongly that ethical considerations should not be glossed over in academia, which is the training grounds where professional standards for behavior are taught. For people who are already inclined towards wanting to perform their work in an ethical manner, appropriate coursework will impress them with all the right benchmarks to aim for.

College students generally expect their education to adequately prepare them for their future careers. Sufficient career preparation includes gaining an understanding of relevant laws, regulations and typical client expectations. These are a few of the most compelling reasons many academic institutions require their finance majors to take classes in ethics; if this is a career path that interests you, studying the accepted moral code in business is likely to be of substantial benefit to you in your future career.