
Answers to some of the most frequently asked questions in the Global economy.
As we continue our discussion on The importance of Ethics in the marketplace, we will address today in this Q&A session, some rules that the broker should follow. Some of it you may find to be common sense, and some of it you may find to be new to you. However, it all boils down to putting into practice those things that will encourage habitual ethical behavior which will lead to a long term career built on integrity.
Here is a synopsis of what we covered on question 1 : How do ethics affect the stock broker on Wall Street?
We addressed several areas that the stock broker should examine and seek to improve where improvement is necessary. They are:
a. Misleading the client
b. Lack of full disclosure
c. Breach of Confidentiality
d. Neglecting to offer Alternatives
OK, now you’ve closed some great deals and you’ve been doing this for some time. You may say that you are just like the average guy that’s trying to provide for their family. You have a mortgage and school fees to pay for your kids that’s in an elite private school. Why would you need to give thought of rules. You are doing a good job. You’re winning awards at the office as one of the top performers and your boss likes the results you are getting for the company, who cares about rules. Rules are made to be broken.
Everyone does it anyway. After all, you need that bonus that you’ve been working so hard towards all year. You want to maintain or improve your lifestyle and afford or buy some of the finer things in life for you and your family. Like take that great vacation to the Bahamas or that nice European car you been planning to buy.
God’s word declares “A man without self-control is like a city broken into and left without walls.” (Prov. 25:28 – esv). Also, James 1:14-15 (esv) says, “But each person is tempted when he is lured and enticed by his own desire. Then desire when it has conceived gives birth to sin, and sin when it is fully grown brings forth death.” We have seen the evidence of when these scriptures are violated in light of what recently took place with Bernard Madoff in March 2009.
John Piper has a saying, “God is most glorified in us, when we are most satisfied in Him”. That being said, let us look at some basic rules that you may want to follow from a biblical perspective, that will serve as a guide and that will aid you in becoming the greatest stock broker God intended you to be.
Q & A:
2. What are some rules a broker should follow?
God has put in place some precepts that if violated, would produce dire consequences for the one who neglects them. Some of them are as follows:
a. Respect the code of conduct
The NASB has put in place Conduct Rules for Registered Representatives and Investment Bankers to be guided by. Even though these rules are in place, for some reason, some people see it as a pleasure to take liberty in challenging these rules. Doing whatever they can seemingly get away with – for the moment. However, we as children of the Kingdom, are to show Christ’s character as we work “as unto the Lord” in the workplace. Let make sure that our conduct is in keeping with “children of the light” amidst this darkened world (Prov 20:11; Jam 3:13). Here is the standard we are called to in God’s word, “but as he who called you is holy, you also be holy in all your conduct” (1Pet 1:15 esv).
b. Avoid greed
When you are servicing a customer that you have come to know, it is very easy to become presumptuous in our actions. Making assumptions especially when we are processing applications and fulfilling the clients wishes or instructions. In this case, the opportunity may present itself where you are required to charge fees for certain services as is necessary. This is where your discretion is depended upon to be fair and reasonable. However, in most cases, you are required to inform the client of your fees up front at the time of opening the investors account. Those being said don’t take advantage of people’s trust in you by manipulating fees charged. 1 Kings 8:61 declares, “Let your heart therefore be wholly true to the Lord our God, walking in his statutes and keeping his commandments…”
c. Flee unethical behavior & practice
The Apostle Peter penned these words in 1Pet. 2:12, “Keep your conduct among the Gentiles honorable, so that when they speak against you as evildoers, they may see your good deeds and glorify God on the day of visitation.” Let us make sure that our conduct exudes Christ that when our deeds are examined under the ever watchful eyes of those in authority over us, both corporate and governmental, our works may prove to be that of veracity.
d. Don’t engage in fraud
In the case of Bernard Madoff we can see how the mighty falls. His story conveys the message that when you gain the trust of another and betray that trust you capture God’s attention – that justice may be rewarded (cf. Psa 103:6; Jam 5:4). The things that you might have thought you had gotten away with, surely will come back to haunt you and you will be repaid. Proverbs 28:6(esv) says, “Better is a poor man who walks in his integrity than a rich man who is crooked in his ways”.
e. Avoid bribes & exorbitant gifts
A good example of how this can tarnish your name and ruin your legacy is the damage the act of engaging in or taking bribe has caused an otherwise productive citizen in the person of former Senator Ted Stevens from Alaska.
When we as children of God adhere to the things that please the Lord, we will preserve our good name and a good character will be the hallmark of our reward both among men and in the sight of the Lord (cf. Deu 16:19, Psa 15:2-5; 31:24; Prov. 22:1; ). The Lord calls those that receive bribes – “the wicked” (cf. Prov 17:23).
Thought for consideration
We must at all times posses a kingdom focused mindset, living a life ever Before the Face of God, displaying Christ in our deeds and actions. In this world today it’s not easy to live up to the standards of Christ in our workplace and business, especially given the fact that we are dealing with so many personalities and pressures of this competitive marketplace. Beside, nothing worth having is ever easy. We are called to be perfect (cf. Matt 5:48). Let us continually press toward the goal of sanctification in Christ.
In our NEXT ISSUE The importance of Ethics in the marketplace (part three), we will address the question:
Is there a relationship between theology, philosophy, and ethics?
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