Financial Principles and Practices

Question: Describe about the Financial Principles and Practices. Answer: Session 4 Visser (2009) Islamic Finance: Principles and Practices. Thesis statement: A radical ethical and new approach of banking is offered by Islamic Banking which can be differentiated with profit extracted from customer because of the financial problems. There are various instruments of finance used by Muslims, those are Islamic requirement. Various instruments were developed by Muslim government on 1973-74. Islamic principles are based on economic system which is allocated on forces of assimilating globalizing western culture with Islamic economics. Islamic banks are facing financial crisis[1] . There Islamic financial instrument is developed in IDB. It is sketched that, rise of oil crisis has started. An author of book Bill[2] stated: The plan of action I had in mind was that I should first break the hold which Western culture and ideas had come to acquire over the Muslim intelligentsia, and to instil in them the fact that Islam has a code of life of its own culture, political and economic systems and a philosophy and an educational system which are all superior to anything that Western civilization could odder. I wanted to rid them of wrong notion that they needed to borrow from others in the matter of culture and civilization. Visser[3] said, maintaining the principles of financial ability of Muslims by taking loans forbidding the charge of exploitative gains or financial gains which is unjust. From the reflection this can be said, major importance is qualified with the principle of Islamic Banking by auditing frameworks of financial institute and banks. Ethical change with reflections of customized program is found in principle and practices which is related to Islamic financial strategy programs which is followed here. Session 5 Sternberg, E. (2013) Ethical Misconduct and the Global Financial Crisis, Economic affairs Thesis statement: Interchangeable Global Financial crisis with precluded securities analysed with bank shareholders are found here. Blame has been given to the financial service industry for Global Finance Crisis. The conduct underlies pervasive, fundamental and pernicious encouraged fiscal policy which is generated by moral hazards and government policies as opined by Elaine[4]. Turnover is vanity, profit is sanity and cash is reality --------------------City of London (FT 1992) Grey court said, in Atlantic business especial banking has been done with investment which effects internally. The root cause of crisis was gradual but ultimately completes collapse of ethical behaviour across the financial industry. There are special circle in hell reserved subprime banks. This is a serious ethical problem that crisis surrounds the Global Finance Crisis (GFC). The threatened failure of institutions of finance was faced by Global Finance Crisis in 2007 and 2008. Ethical conduct of business has been constituted which can be understood by this article and it seems that unethical conduct of Global Financial Crisis is sometimes faced here which is ethically wrong[5]. The philosophical approach is found through macroeconomics analysis. The contrast of analytical framework is identified in this case. Finally it is found that; explosion is surrounded with predatory financial services. Pervasive irrationality with systematic substitution of markets is found with economic policy. GFC exacerbated and fostered plethora in moral hazard which is created by government. These are related with mortgage insurance, deposit insurance, guarantees of government, affordable housing, credit rating and capital investments ("Ethical Misconduct and the Global Financial Crisis" 2013). Fostered economic plethora is identified here which is analyzed from the global crisis method. Session 6 Hacker .J.S Pierson (2010), Winner-Take-All Politics: Public Policy, Political Organization and the Precipitous Rise of Top Incomes in the United States Thesis Statement: Dynamism of politics in the USA led to appalling difference between the well to do and the impoverished because policies are made on basis of certain interests. According to Hacker and Pierson[6], The dramatic rise in inequality in the United States over the past generation has occasioned considerable attention from economists, but strikingly little from students of American politics. USA is reeling from extreme income gap which is only coming under the notice of the economists. However political science researchers are less unaware about the current issue. However change has begun to set in. A small group of researchers have started researching on growing difference in economic standards. These standards give importance to political metamorphosis of change in financial status. There are backdrops however attached- The study fails to identify the unique characteristic pertaining to money being concentrated in the hands of upper echelons of the bourgeoisie. It fails to identify the fault of the government in this concentration of money in few hands crisis. The slow and continual change in the contours of American political system affecting policies is getting ignored[7]. All the lacunae are intertwined coming out of a system which is bent or absence of bent of regular voters in the election based political system. They do not sprout out from a well balanced interest in method of rule creation[8]. Finally it can be concluded that extreme changes in policies have shook the financial stability. They have fuelled the upper echelons of society while ignoring the others. Session 7 Doane, Deborah; Abasta-Vilaplana, Naomi. (2005), the myth of CSR Thesis Statement: A lot of time is spent by company which requires the development of programs which is related with industry standards awarded by partnership and initiative aligned in business with responsibilities with negative impacts. Limitations have bounded the modern corporation which is corporate with social responsibility in CSR initiatives. Legal obligations are linked with the shareholders in corporations which is further restricted with the potential which is often found in a wide chasm captured with some keys of CSR[9] Firstly, long terms social benefits and short term financial returns which are driving the change of consumer choice. Competitive race is found with the competency of ethical practice. Broad efforts of corporation are bounded with the representation of incentive of business ethics. The truth is, the gap between green consciousness and green consumerism is huge ---------------Joel Maower (The Green Consumer Guide) CSR schemes are following the company rules which are followed while signing UN Global Compact which is changing the behaviour[10]. Popularity of CSR programs and market liberalization in multinational corporations are filed to uphold the voluntary programs which shows the sustainability of environmental issues of CSR which is written in the newspaper Guardian and in a book Financial Times Handbook of Management. The public interest and private interest is the purpose of the corporation. There are fair profits of shareholders which compromise the equitability and transparent accountability with participation in found here. Social responsibility of corporation and psychopath in disdainful manner is portrayed with values. In UK law the company directors follow the CSR values in their financial calculation[11]. Finally it has been reviewed that keys of CSR are explained thoroughly which demonstrated the market failure because of loss of long-term and short-term benefits. References: Hacker, Jacob S and Paul Pierson. 2016. "Winner-Take-All Politics: Public Policy, Political Organization, And The Precipitous Rise Of Top Incomes In The United States". Pas.Sagepub.Com.Libproxy.Murdoch.Edu.Au. https://pas.sagepub.com.libproxy.murdoch.edu.au/content/38/2/152. Deborah, Doane and Abasta Vilaplana. 2005. "The Myth Of CSR".Search.Proquest.Com.Libproxy.Murdoch.Edu.Au. https://search.proquest.com.libproxy.murdoch.edu.au/docview/217169049?accountid=12629. Doane, Deborah. 2005. "The Myth Of CSR".Ssir.Org/Articles/Entry/The_Myth_Of_Csr. https://ssir.org/articles/entry/the_myth_of_csr. "Ethical Misconduct And The Global Financial Crisis". 2013.Ideas.Repec.Org/A/Bla/Ecaffa/V33y2013i1p18-33.Html. https://ideas.repec.org/a/bla/ecaffa/v33y2013i1p18-33.html. Hacker, Jacob S. and Paul Pierson. 2010. "Winner-Take-All Politics: Public Policy, Political Organization, And The Precipitous Rise Of Top Incomes In The United States".Www.Kysq.Org/Docs/Hacker.Pdf. https://www.kysq.org/docs/Hacker.pdf. Sternberg, Elaine. 2013. "Ethical Misconduct And The Global Financial Crisis".Economic Affairs33 (1): 18-33. doi:10.1111/ecaf.12010. Visser 2009. "Islamic Finance; Principles And Practice (2009)".BBS150-Visser_H-Islamic_Finance%3B_Principles_And_Practice-Why_Islamic_Finance--Pp1-9.Pdf. Accessed 24th September 2016 https://file:///C:/Users/pc/Downloads/BBS150-Visser_H-Islamic_finance%3B_principles_and_practice-Why_Islamic_finance--pp1-9.pdf.. Musk A Bill. 2003. Holy War. London: Monarch Books