The law standardized internal control and auditing procedures. It mandated auditing committees use stricter standards when vetting accounting firms and raised standards for corporate responsibility for fraudulent accounting. It provided more stringent conflict-of-interest guidelines for accounting firms. It was passed by the U.S. Congress to protect ordinary investors from losing their money due to fraudulent accounting practices which ordinary investors could not monitor, through public documents. It also established an oversight board for public companies and mandated "stricter disclosure within company financial statements and ethical guidelines to which senior financial officers must adhere" (Sarbanes-Oxley Act of 2002 -- SOX, 2009, Investopedia). It created "authorities available to the Commission and the Federal Court, as well as required broker and dealer qualifications enforcement methods available for punishment of activities deemed criminal by the Act" (Sarbanes-Oxley Act of 2002 -- SOX, 2009, Investopedia). Within the act,...
Companies must devote more resources adhering to Sarbanes-Oxley accounting standards. Some companies have expressed anger at the fact that they cannot use these costs to invest in other areas, and instead must divert funds to demonstrating bureaucratic compliance (Stephens & Schwartz 2006). But given the fallout from the Enron and other scandals of large firms, there is little public groundswell to limit the scope of Sarbanes-Oxley.
The stronger the market pressure for profit, the greater the pressure applied on their profit and care conscience decision. In their strongly competitive share market environment, survival depends or means the generation of larger profits in order to grow and resist takeovers. Those who can afford or choose to ignore their conscience succeed only at the expense of those who cannot or do not. There is no other way
Business Ethics Ethical issues and dilemmas have always been hitting the operational performance and sustainability of business organizations. They directly affect the way an organization formulates and implements its policies, operates as an active participant in the industry, and competes with other organizations for the sake of accomplishing its strategic objectives. Ethical issues may relate to the organization's social responsibility or corporate responsibility; both are vital for the organization to ensure
Business Ethics Focus on Merrill Lynch According to Laura Hartman and her co-writer, Joe Desjardins in the work entitled "Business Ethics: Decision Making for Personal Integrity & Social Responsibility" philosophical ethics may be clearly differentiated from theological ethics because theological ethics attempted to disseminate the well-being of an individual on a religious basis while the ethics of an individual's philosophy is such that provisions of justifications that can be applied to
D.). When a company deals with its purchasing in unethical ways, it cannot suppose its suppliers to be trustable associates and guarantee business continuity. If one doesn't align with something, they shouldn't expect others to do it either. This weakens the entire value chain making it less aggressive in the market. Hence it is important for both buyer and supplier to connect in ethical dealings in their transactions (Ethical Buying or
2). These are important issues because fire chiefs are routinely confronted with actual ethical dilemmas that involve conflicting or competing public and private values as well as corresponding conflicting professional responsibilities (Haraway & Kunselman, 2009). This point is also made by Pammer and Killian (2003) who cite the expanded responsibilities of both fire chiefs and line personnel in recent years. According to these authorities, "A successful fire chief today
Business Ethics "the High Cost of High-Tech Foods case" The cost of high-tech food continues to arouse debates over the ethical, moral, and practical impacts the foods have on the people, market, and economy. However, it is evident that the proponents and opponents of the motion do not seem to come to agreement as each holds their view right. The situation worsens due to the application of emotions in addressing the matter
Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
Get Started Now