Reflection Paper: Ethics in financial responsibilities

Ethics in Financial Responsibilities
Name:
Institution:
Course:
Date:
Ethics in Financial Responsibilities
The executive compensation is crucial when it comes to evaluating the investments opportunities along with equality and ethics at the work place. There is also the understanding that when the chief executive officers are compensated well, they may not perform to their best relative to the needs of the shareholders and this may be costly to the company in the end (Kara, 2015). As such, in most of the cases, the compensation is used as an incentive for the CEOs to act in the best interests of the shareholders. While this aspect is vital to consider, there are concerns that most of the CEOs are taking advantage of the shareholders and the staff at their company by amassing massive salaries, stock options and severance packages that are commensurate with the amount of work or contributions they bring to the stakeholders and the company in general. This is compared to the rest of the staff who work tirelessly to ensure that the company does not experience downfalls (Kara, 2015).
In the wake of the recession which had massive impacts on companies in the wake of the year 2008, there has been a concern that CEOs are unethically being awarded compensation package that hurt the financial health of the companies. The compensation packages are associated unethical behavior, unnecessary risks. When the deontological ethics are applied in this case and element of the fiduciary duty, cracks start to emerge in the level of compensation that goes towards making sure that the CEOs are incentivized to do their duties (Kara, 2015). This would explain where there has been mounting public pressure, media sc...