Ethics In Financial Services Insights
Key Trends in U.S. Business Ethics
This analysis of the survey results highlights the current state of business ethics education in the U.S., offering valuable insights for financial services professionals.
The authors identified several key topics that are critical to business ethics education in the U.S., including leadership, ethics management, and corporate governance. For financial professionals, these areas are essential, as they emphasize common trends that highlight the need for ethics training that goes beyond compliance. Survey respondents stressed the importance of ethical leadership in setting the "tone at the top," ensuring that ethical behavior is embedded across all organizational levels.
Emerging Ethical Issues: ESG, AI, and DEI
Emerging ethical issues that are addressed in contemporary ethics education include topics that address the role of business in society, including systems-level implications of business activities. These include environmental, social, and governance (ESG) concerns, artificial intelligence (AI) ethics, and diversity, equity, and inclusion (DEI). As the U.S. Securities and Exchange Commission (SEC) has considered how to address investor demands for more climate-related disclosures, ESG considerations are becoming a crucial factor in how companies manage risk. Similarly, the increasing use of AI in the financial services industry raises ethical concerns around privacy, fairness, and preventing bias in automated systems. Addressing these issues is vital for businesses committed to long-term sustainability and trust.
Conclusion: Implications for Financial Services Professionals
The evolving landscape of business ethics in the U.S., as outlined by Filabi, Gustafson, and Warren, reflects both regulatory requirements and broader societal expectations. Financial services professionals and organizational leaders need to stay informed about key ethical issues, particularly leadership, AI, ESG, and DEI, as they are becoming integral to navigating the complexities of the modern business environment. Ethics is no longer a mere compliance issue; it is a strategic priority essential for long-term success and trust-building efforts across the financial sector.
More from The College
- Access the full report for an in-depth look at the research findings, including key insights discussed in Chapter 13 (p. 365).
- Learn more about AI ethics in financial services with research from the Center for Ethics in Financial Services.
- Access information on the Center’s research on trust's role in financial services.
Ethics In Financial Services Insights
Using Behavioral Science to Achieve Ethical Excellence
Moderated by Domarina Oshana, PhD, the Center’s director of research and operations, the panel highlighted how financial services professionals can leverage behavioral science to foster a culture of ethical excellence. This webcast was provided with media partner InvestmentNews.
The panel brought together four leading experts:
- Azish Filabi, Associate Professor & Charles Lamont Post Chair of Business Ethics, The American College of Financial Services; Managing Director, the American College Center for Ethics in Financial Services
- Katie Lawler, Executive Vice President and Global Chief Ethics Officer at U.S. Bank
- Todd Haugh, Associate Professor of Business Law and Ethics
Arthur M. Weimer Faculty Fellow in Business Law; Director, Institute for Corporate Governance, Kelley School of Business, Indiana University - Wieke Scholten, Founder, BR Insights B.V.
Key Discussions: Moving from Theory to Practice
The webcast commenced with an exploration of recent insights from behavioral science, emphasizing nudges towards ethical behaviors as subtle interventions that facilitate ethical decision-making while honoring individual autonomy. The discussion highlighted the importance of psychological safety in creating a workplace where employees feel safe to voice concerns.
A key point was the concept of "corrupted barrels," which shifts the focus from blaming individual "bad apples" for misconduct to recognizing systemic issues within organizations that may enable unethical behavior. This approach underscores the need to address cultural and structural weaknesses that could contribute to unethical practices.
The panel also explored the role of ethics education in financial services. Moving beyond compliance checklists, panelists advocated for integrating ethics into daily decisions. The Center for Ethics in Financial Services’ Trust Certificate Program was highlighted as an essential resource for professionals looking to build and restore trust. The Trust Certificate Program is designed to provide financial professionals with a deep and actionable understanding of trust and its underlying mechanisms. Participants will learn about the science of trust and how to apply various frameworks and models to real-life challenges.
The webcast concluded with an interactive Q&A, reinforcing the message that cultivating ethical behavior requires more than rules; it requires a deep understanding of human behavior, an ethical organizational culture, and committed leadership.
More from The College
- Learn more about the Center’s Trust Certificate Program.
- Access information on the Center’s research on trust's role in financial services.
Philanthropic Planning Insights
CAP Groups Are Fueling Philanthropic Communities
For many designations available at The College, the most apparent benefits are conferred upon the advisor who earns the designation. Higher earnings, rates of referral, and increased trust by clients are prominent among these benefits. One could also determine a high level of benefit is received by the advisor’s clients. They receive a greater level of expertise, and as such should achieve improved outcomes. However, some advisors are aiming for another goal: improving their entire community.
The Founding of CAP® Study Groups
One such advisor, Mark Weber, CLU®, ChFC®, CAP®, MSFS, serves as a philanthropic consultant with Legacy Spectrum Advisor. Based out of Omaha, Nebraska, Weber sought to “make Omaha more generous.” With help from the Omaha Community Foundation, Weber founded one of the first CAP® study groups in 2012. According to Weber, the idea was derived from Todd Healy, MSW®, CLU®, ChFC®, AEP®, CAP®, who founded the first CAP® study group in Dallas, Texas, just one year earlier. Weber stated the original intent of the study group was to form a group of CAP® participants that could help each other maintain accountability as they worked to stick with the program.
However, this organization turned into something much more than the “study group” name would imply. Weber’s study group offered CAP® participants opportunities for additional learning outside the CAP® curriculum. This included guest speakers who would serve as supplements to the learning materials, social events that allowed for networking with other local advisors in the field, and meetings with major philanthropists. All of these activities, along with actual meetings to review the CAP® course materials, created a group of advisors committed to the cause of philanthropy in Omaha. In fact, many of these advisors continue to participate in study groups past the point of earning their CAP® designation.
Weber’s study group resulted in several tangible benefits as well; not just for its members, but for the Omaha community. According to Weber, his study group boasts a 100% graduation rate from the CAP® program. Weber also shared that participants in the CAP® study group program refer three funds on average to the Omaha Community Foundation. In comparison, non-CAP® advisors average only one referral. Weber also stated that in 2023, the average size of an account opened with the Omaha Community Foundation by a CAP® advisor is about seven times larger than the average of a non-CAP® advisor.
To further measure the impact of the CAP® study group on the Omaha community, the study group conducted its own survey among 80 attorneys, accountants, and wealth managers that had completed the program. Weber stated, “They were asked to isolate those client situations where their involvement may have favorably disposed their client to make a charitable gift, and then, on a no-name basis, indicate the approximate dollar amount of the gift and whether it is a current gift, beneficiary designation, (or) bequest by will … Their responses indicated the total amount of gifts, current and anticipated, exceeded $9 billion. It was the first quantitative evidence we had that we were truly making a difference in our community.”
Making a Difference on the Community
Aside from this quantitative proof, Weber pointed out several aspects of the philanthropic community forming in Omaha he believes serve as qualitative proof of the CAP® study group’s impact. Weber stated, “For years, people could have multiple advisors who never met with each other.” However, with the popularity of the CAP® study group, Omaha’s philanthropic scene has benefited from an uptick in advisor collaboration. By networking and studying together, philanthropic advisors in the community have come to know one another, share effective strategies with each other, and work together to help clients reach their financial goals. Thanks to these results present in his own community, Weber has expressed the belief that “The CAP® Program has the potential to have a national impact on charitable giving seen in cities throughout the country.”
CAP® Communities in Florida
To Weber’s point, other CAP® study groups have sprung up across the country. One such group emerged in Central Florida after its founder, Kimberlee Riley, CAP®, heard about Weber’s study group and was inspired to make a similar difference in her own philanthropic community.
Citing a desire to be part of a team that supports the aspirations of donors, Riley developed the group to aid in the professional development of philanthropic advisors in the area. Requiring donor-facing advisors in her organization to take part in the program, Riley’s study group provides participants with opportunities such as guest speakers and networking opportunities known as “NightCAPs.”
Riley has also used her CAP® study group to bring together multiple disciplines so they can share their unique perspectives with one another. When discussing the benefits of the program, Riley stated, “It enhances the opportunity for the student to get the experience they might not during self-study, and those relationships are there for life.”
“It enhances the opportunity for the student to get the experience they might not during self-study, and those relationships are there for life.”
Building Better Relationships
By combining the perspectives of professionals from across the field of philanthropy, specifically those of nonprofit, financial, and legal professionals, Riley believes the members of her CAP® study group are able to develop a stronger understanding of their clients and their goals, ultimately building stronger client relationships and empowering them to approach their clients’ situations using a greater number of methods. As Riley states, the marriage of these perspectives “is so focused on values and making sure you’re guiding your clients based on those values.” By considering each of these unique viewpoints when working with clients, Riley believes study group participants not only build better relationships with clients, but also with their families. As such, Riley’s study group has made a large difference of its own to the Central Florida philanthropic community.
By coming together, Riley believes her study group has made a significant emphasis on the team element of being a philanthropic advisor. By increasing the number of philanthropic professionals bearing the CAP® designation in her region by over 60%1, Riley has cultivated a community in which advisors can collaborate, share tips, and help each other meet their professional goals.
In both situations, CAP® study group members have come together to better their community, improving outcomes for their clients through collaborative learning and a deep commitment to their cause. As Weber stated, “In Omaha, when people say they’re a CAP®, that’s a badge of honor.” With the difference holders of the CAP® are making in their communities, it isn’t hard to see why.
More From The College:
2024 NextGen Financial Services Professional Award
The NextGen Financial Services Professional Award honors young professionals under the age of 40 who made a significant impact in the financial services industry and have shown outstanding performance and leadership in their careers, with a desire to give back to the community.
The winners from 2024 include:
Gloria S. Garcia Cisneros, CFP®
Gloria Garcia Cisneros is a wealth manager in Los Angeles with the firm LourdMurray. As a first-generation Mexican immigrant, she's passionate about empowering underserved communities through financial education. Gloria holds various degrees from UCLA in applied mathematics and Spanish community and culture. She is actively involved in various professional and community initiatives, serving on committees and advisory boards for organizations where she contributes to developing financial education programs and increasing diversity within the finance industry.
Brandon Lovingier, ChFC®, MQFP™
Brandon Lovingier has a passion for helping people with their finances. While on active duty in the Army, he pursued his education, earning the Chartered Financial Consultant® (ChFC®) designation in 2022. He’s also one of the first to hold the Military Qualified Financial Planner™ (MQFP™) designation. He’s currently pursuing the Accredited Financial Counselor® (AFC®) designation. His blog, Enlisted Money, helps enlisted service members on their own personal finance journey, while his book, Enlist to Wealth, is currently in the editing stages. Brandon is set to retire from the Army in February 2026, when he will return to Kansas City with his wife and son to continue pursuing his passions.
2024 Women Working in Wealth Award
The Women Working in WealthSM Award was created to showcase and celebrate women who have rolled up their sleeves to advance women in financial services through mentorship, sponsorship, and advocacy. The American College of Financial Services presents the award to a mission-driven and passionate female professional who is making a significant impact in financial services. The College is proud to announce Leslie Susanne Calkins, MSFS, CLU®, ChFC®, CASL®, RICP®, CAP® as the 2024 recipient.
Leslie has a passion for sharing and giving back. She utilizes the knowledge she gained from The College to better serve her community through her career at State Farm. Education and philanthropy were key values in her family, which continue to inspire her today.
Since receiving her MSFS degree, Leslie is proud to share how each course has made her more confident, knowledgeable, and able to help others in so many ways. She continues to give back by serving as an annual senior counselor at the Rotary Youth Leadership Awards. This leadership conference changes the lives of high school students in Colorado and Wyoming and is the highlight of her year.
Honoring 2024 Hall of Fame Inductee Jim Petersen
The American College of Financial Services’ Alumni Hall of Fame was established in 2005 to recognize graduates of The College's designation, certification, and degree programs who have made extraordinary contributions in time, treasure, effort, and energy to the institution, their community, and the financial services industry as a whole. The College is proud to announce Jim Petersen as the 2024 inductee.
Jim is the chief executive officer (CEO) and founding principal of Diversified Professional Coaching, LLC. Jim is also the president and owner of the Professional Business Coaches Alliance, LLC, which is committed to training and supporting the future of professional business coaches. In addition, Jim is a serial entrepreneur who is involved in a variety of businesses including a car wash and a bio-hazard cleanup company.
As Roger Hull/James S. Bingay Chair of Leadership at The College, Jim is the program director for the Chartered Leadership Fellow® (CLF®) Program and serves in an emeritus role on the Alumni Council, as well as the outgoing chair of the American College Center for Military and Veterans Affairs’ Advisory Council.
A seasoned financial services executive with more than 41 years of experience in the investment and financial services industries, Jim is an expert in the fields of financial planning, retirement planning, and leading large financial planning organizations.
2024 Second Century Society Inductees
Founded in December 2019, the Second Century Society recognizes generous benefactors who have made lifetime gifts reaching $1 million or more of philanthropic impact. The College is proud to announce Charles R. (posthumously) and Mary M. Wright as the 2024 inductees.
Charles (Chuck) and Mary Wright met at Yankton College in Yankton, South Dakota. Together, they were leading donors to The College, with an emphasis on the American College Center for Women in Financial Services.
Chuck was senior executive vice president and chief agency and marketing officer at State Farm Insurance Companies. He later served as chairman of the board of trustees and was a driving force behind the creation of the Chartered Advisor in Philanthropy® (CAP®) and Chartered Advisor of Senior Living® (CASL®) designations.
Mary’s years of service through philanthropy led her to complete her CAP® designation, which she would use to help others engage in philanthropic work as well. As a passionate lifelong learner, Mary continues to carry on Chuck’s legacy by laying the foundation for the Wright Fellowship under the Center for Women in Financial Services.
The College is proud to recognize Chuck and Mary’s continued impact.
2024 President’s Award Recipient
Conferred by The American College of Financial Services’ President and CEO, the President’s Award recognizes the leadership and generosity of select benefactors and volunteers. The College is proud to announce the 2024 winner: R. David Fritz Jr., CLU®.
David is the co-founder and managing partner of Executive Benefits Network and a 38-year veteran of the financial services industry. He began his career in the insurance industry in 1986 after graduating from Williams College with a BA degree. He started at UNUM Life Insurance Company as a group sales representative in Washington, DC, then later became an employee benefits manager in UNUM’s Milwaukee, WI office. He joined Northwestern Mutual in 1993 and founded Executive Benefits Network 23 years ago. He specializes in the design, funding, securing, and administration of non-qualified deferred compensation plans and bank-owned and corporate-owned life insurance programs.
David and his wife Molly are very active in philanthropic efforts. He is a past trustee of The American College of Financial Services and currently serves on The College’s President Council. He and Molly live in River Hills, Wisconsin with their six children.
2024 Huebner Gold Medal Recipient
In 1975, as The American College of Financial Services approached its 50th anniversary, the Board of Trustees decided to honor those whose role in the development of the institution was of special significance. The Huebner Gold Medal, named for Solomon S. Huebner, is The College’s most prestigious honor and is awarded to people who have moved the institution forward in its mission. The College is proud to announce Sy Sternberg, CLU® as the 2024 honoree.
Sy Sternberg is the former chairman and chief executive officer of New York Life Insurance Company. He joined the company in 1989 as a senior vice president, was elected vice chairman of the board in February 1995, and became president and chief operating officer in October 1995. He became chairman and CEO in 1997 and remained CEO until his retirement in 2008.
Sy is a former chairman of Northeastern University’s board of trustees. He is also a former director of CIT Group and Express Scripts. He currently serves on several non-profit boards including NewYork-Presbyterian Hospital, the Hackley School, the New York Historical Society, Big Brothers Big Sisters of New York City, and the Foundation for City College. He is also a member of the Council on Foreign Relations.