How can you be an Ethical Investor?

Ethics is a way of life. With improving technologies in the trading industry, ethics is becoming a question in consideration to many defaulting trade systems. But the automated trading robot follows the most ethically best practices to ensure safe and healthy trading systems. But you may think what has ethics got to do with trade? Yes, this is an important factor which needs to be well accompanied with any height of success you reach.

These ethics in this trading industry can be broadly mentioned under these three headings for a better understanding. They are :

  • Compliance based code of ethics: every business comes with a certain set of rules for hiring and safety standards and also for the entire functions. Compliance based code of ethics not only contain the basic rules but also the penalties for violation of these rules.

The employees during their induction process need to undergo a training to understand the company’s compliance policies and rules. This is ensured in a very perfect manner as noncompliance of rules can affect the entire company in many ways. Thus these have to follow.

Some companies also have a compliance officer to take charge of this policy. The same applies to the trading methods in the firms which operate in this cycle.

  • Value-based code of ethics: this will focus on the core value system of a company.it will provide the outline of the company’s functions and rules of working keeping the public and environment in mind. This plays a vital role in benefiting the society in which it functions as well as to the employees.

These ethics can range from the safety standards, the health hazards and also the employee behavior in the organization. This is more of a self-regulated compliance rather than like focused on the rules or regulations.

Taking trading into consideration, this type of value-based ethical behavior will bring a lot of peaceful trading and help everyone to trade and win better rather than spending time in conflicts and finding solutions for those. Thus the core values of humanity need to be held high while working in a big group.

  • Ethics among professionals: when it comes to dealing with a huge group of people, ethics also gets a larger and broader meaning. The people in the trading industry the financial professionals who are a part of the Securities Exchange Board of India should have an ethical code called as the fiduciary duty which means they should be loyal in the best of their client’s interests.

Therefore it is important to understand that ethics play an important role in all facets of life.

    Vanessa Chambers