Essay on The Sarbanes Oxley Act Helped Change Business Ethics And Culture

Essay on The Sarbanes Oxley Act Helped Change Business Ethics And Culture

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Our group believes that there are several factors that contribute to poor ethical analysis, decisions, and self-destructive behavior. On an organizational and industry level, some of those factors include loose ethical standards being put into place, inadequate enforcement on the part of managers and executives, having too much opportunity to act unethically, and pressure to make profit. On a societal level, the biggest factor is the constant push to be successful, which can lead to people acting unethically to achieve that success.
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.
There a...


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...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.

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