Elements of Business Ethics in the Financial Sector with an Emphasis on Investment Funds

Abstract

The paper gives a precise description of ethical problems in the financial sector. Following the preliminary exposition of ethical codes in the financial sector, honesty is identified as one of the key elements of success in the free market. Honesty includes giving adequate information to users on the successfulness of any business. Within the financial sector, the financial services sector has been emphasized, that is investment funds in Croatia. Aside from the legal requirements concerning the giving of adequate information to investors, there are also ethical requirements which involve reporting on the risks the investment funds are exposed to. Although these are not legal requirements, they are part of the social responsibility of investment funds towards investors. Investment funds in Croatia rarely meet the latter requirements.