Which of the following is a consequence of failing to adhere to ethics in finance?

The consequence of failing to adhere to ethics in finance often manifests as major financial penalties or legal action. This is due to the regulatory frameworks and laws in place that govern financial practices. When individuals or firms engage in unethical behavior—such as fraud, misrepresentation, or insider trading—they may face serious repercussions from regulatory bodies like the Securities and Exchange Commission (SEC) or other financial oversight authorities. These repercussions can include hefty fines, litigation costs, or even criminal charges, creating a significant impact on the financial standing of the involved entities.

In contrast, options like think tank creation, increased investor trust, or enhanced public relations do not typically result from unethical conduct. A failure to maintain ethical standards generally leads to loss of credibility and trust, not an increase. Hence, option C accurately reflects the serious consequences of unethical actions within the finance sector, emphasizing the risks that professionals face when they do not uphold ethical standards.