Which of the following best describes financial ethics?

Financial ethics refers to the principles and standards that govern the conduct of individuals and organizations in the financial sector. It encompasses the moral values and judgments that guide decision-making and behavior in financial practices. This includes honesty, integrity, transparency, and accountability in all financial dealings, ensuring that stakeholders are treated fairly and that financial reporting is done accurately.

Focusing exclusively on maximizing profits, budgeting, or reducing employee costs does not encapsulate the broader and more critical aspects of ethical conduct in finance. While these elements are important in business operations, they are not fundamental to the definition of financial ethics, which is specifically concerned with how financial decisions impact various stakeholders and society at large.