2. How has the Sarbanes-Oxley Act helped to change business ethics and culture? What are the structural, governance and leadership factors that promote ethical business and behavior? Explain.
The Sarbanes-Oxley Act significantly changed the way that a public business’ financials are handled, and greatly increased the transparency of reporting and auditing said financials. One of the biggest things it attempted to resolve was to remove the problem of conflict of interest from a company’s finances. This was done by requiring multiple parties to be involved in the financial process. Some of these parties can be a part of the company, while others are outside sources. In turn, this led to businesses being forced to act more ethically when dealing with their financials, or face quite severe consequences.
As far as structural, governance, and leadership factors that promote ethical businesses, there are indeed quite a few. They include things such as corporate goals, good leadership that enforces ethical decisions, and checks and balances that ensures no single person or group is able to do as they please.
3. What are the possible positive and negative effects of whistle-blowing? Explain.
... middle of paper ...
...n put into before, and they end up making the wrong decision. In the case of Mr. Duncan, he was put into a position where there was a great deal of money on the line, and that had a huge impact on him.
We all had different things that we felt we could add to our credo as a result of Duncan’s experiences, ranging from always running ethical dilemmas through the tests we’ve learned, to always stick to the rules/laws and regulations, regardless of our personal beliefs on the matter.
The decision tree that we think he may have followed looks something like this:
Is it legal? Yes (Continue), No (Stop)
Is it good for the company/shareholders and the clients? Yes (Continue), No (Stop)
Is it ethical? Yes (Proceed with plan), No (Stop)
We believe that Mr. Duncan made mistakes in virtually every portion of the above decision tree, resulting in him doing what he did.
Need Writing Help?
Get feedback on grammar, clarity, concision and logic instantly.Check your paper »
- Introduction “Talk about ethics values, integrity and social responsibility is not only becoming acceptable in business community, it’s practically required” (Joyner, 2002, p.298). Revising the literature in which ethical standards are fundamental for the operation of business today, it’s definitely worthwhile to recognize the industry’s concern for the welfare of society and the growing demand for managing business ethically and responsibly. After Enron’s corporate unlawful activity, and other companies misconduct, such as WorldCom and Halliburton, the government and the public sector start to look for fresh methods to support ethical behavior.... [tags: Ethics, Business ethics]
918 words (2.6 pages)
- Ethicality, or the lack of, plays a large part in the broad spectrum of business. It is the duty of every business person to conform to a certain code of ethics. Because of scandals in regard to ethicality, such as Enron, WorldCom, and TYCO, The Sarbanes-Oxley Act of 2002 was passed in order to create a better system of promoting and supervising the ethicality of all businesses and their employees. “In compliance with the Sarbanes-Oxley Act of 2002, in 2003 the NYSE (2009) and the NASDAQ (2009) issued new corporate governance rules that require their listed companies to adopt and disclose a code of business conduct and ethics.... [tags: Ethics, Business ethics, Corporate governance]
1012 words (2.9 pages)
- Jamie Dimon once said that “doing first class business in a first class way” has led to all of his success at J.P. Morgan because building a business does not only mean to build on profits, but also to make sure business is being done in an ethical way. Enron Corporation, once a great accounting firm, fell under its own weight as it was reaching for greatness. Former CEO Kenneth Lay, made a commitment to business ethics based on communication, integrity, respect, and excellence. However, a once successful American energy, commodities, and financial risk service company made questionable financial practices that ultimately led to their downfall.... [tags: Enron, Kenneth Lay, Jeffrey Skilling]
2335 words (6.7 pages)
- Introduction All successful organizations have a social responsibility to their stakeholders. This includes everyone who may be involved with the business. Shareholders and employees rely on the success of the business due to their personal investment in the company. The customers and the community also desire a socially responsible organization for their personal needs such as access to cheap quality goods and a thriving environment. Social responsibility to stakeholders has governmental oversight and laws which must be complied with.... [tags: Social responsibility]
810 words (2.3 pages)
- Is ethics concerning decision making merely an accepted way of life, a trust factor, or a concern for reputation. Is ethical thinking and decision making conclusions right for one individual or firm and wrong for another. Do ethics encompass a universal concept or do they reside solely in an individual realm such as one’s Id or ego as Freud claimed. Finally, do acts such as The Sarbanes-Oxley Act (SOX) create a sound solution to the problem of ethical or non-ethical decision making in public firms.... [tags: Impact on Management]
2849 words (8.1 pages)
- Most jobs these days will have some sort of connection with ethics. People are held to higher standards especially when it comes to having a job with more responsibilities or heavy interactions with others. Many people are taught ethics in school about what is not only right and wrong but also what is morally “right” and “wrong”. When it comes to a profession in accounting you have even more standards and rules to work by. The Institute of Management Accountants has continued to distribute an updated guidance on ethical issues you could have while practicing.... [tags: standards and rules to work by]
1684 words (4.8 pages)
- Introduction After a decade since implementation of Sarbanes-Oxley Act, people begin to discuss its effectiveness as deterrent to unethical and fraudulent activities. This paper analyses the effectiveness of regulatory reforms, and whether it is better using regulation and legal reforms or through ethnical teaching to prevent recurrence of fraudulent cases. Analysis on Effectiveness of Regulatory Reforms as Deterrent to Frauds and Unethical Actions in Audit What is Fraud Auditing. Fraud auditing is an intentional misinterpretation to obtain benefit.... [tags: Sarbanes-Oxley Act]
1313 words (3.8 pages)
- What legislative act prompted many U.S. companies to develop internal ethical policies and procedures. The Sarbanes-Oxley Act created new standards for the accountability of businesses and corporations and it includes penalties for acts of misconduct. The Act stipulates new financial reporting obligations, including the adherence to internal controls and procedures which are to certify the validity of their financial records. These accounting controls put into place were meant to reduce unethical/ illegal actions within an organization (Mathis & Jackson, 2011, p.... [tags: business accountability, sarbanes-oxley act]
888 words (2.5 pages)
- Overview Enron’s bankruptcy was one of the largest bankruptcy cases that the United States has ever seen. This paper will include a brief history on the Enron case and talk about some of the ethical issues that caused Enron to go bankrupt. It will also include information on the companies that were an integral part of Enron’s demise and the Sarbanes-Oxley Act that was formed due to Enron’s unethical practices. Definitions Bankruptcy - the state of being completely lacking in a particular quality or value.... [tags: Bankruptcy Cases, Sarbanes Oxley Act]
1923 words (5.5 pages)
- Historical Overview Caveat emptor, is Latin for “let the buyer beware,” which according to Merriam-Webster’s on-line dictionary (n.d.), was first known to be used in 1523 (Merriam-Webster, n.d.a). From this historical context it is clear that ethical behavior in the realm of business has been a point of contention for society at large for nearly five centuries. America too has had a storied history in dealing with ethics and ethical practices relating to business practices and consumer affairs.... [tags: Business Ethics]
1325 words (3.8 pages)