Explain The Issues Associated With The Sarbanes-Oxley Act Of 2002

This article thoroughly covers the topics related to corporate codes of ethics and the additional issues that can be associated with the Sarbanes-Oxley Act of 2002. This article refers to the more recent scandals of Enron and World Com, and Tyco as well as corporate scandals that gained publicity in the 1960s, 1970s, and 1980s (THE GOOD, THE BAD, AND THEIR CORPORATE CODES OF ETHICS: ENRON, SARBANES-OXLEY, AND THE PROBLEMS WITH LEGISLATING GOOD BEHAVIOR, 2003). Attention raised from the numerous scandals prompted corporate code adoption. As scandals become more prevalent, this influences a move toward enacting stricter reporting guidelines and increased government monitoring (THE GOOD, THE BAD, AND THEIR CORPORATE CODES OF ETHICS: ENRON, SARBANES-OXLEY, AND THE PROBLEMS WITH LEGISLATING GOOD BEHAVIOR, 2003).
The government requested stricter reporting practices and

However, others see the increased legislation as another hurdle to ethical business people (THE GOOD, THE BAD, AND THEIR CORPORATE CODES OF ETHICS: ENRON, SARBANES-OXLEY, AND THE PROBLEMS WITH LEGISLATING GOOD BEHAVIOR, 2003). The idea is that if organizational members are legitimately honest the Act only provides another issue that can cause undue liability. If the executives are working dishonestly, a diversion can be drafted to cover the rules of the Act, while still not changing the erroneous behavior.
Corporate codes of ethics are only as strong as the members tasked with enforcement of the codes (THE GOOD, THE BAD, AND THEIR CORPORATE CODES OF ETHICS: ENRON, SARBANES-OXLEY, AND THE PROBLEMS WITH LEGISLATING GOOD BEHAVIOR, 2003). The Sarbanes-Oxley Act does promote additional disclosures and transparency from organizational executives but this increases the costs associated to business operation as a result. This can become a large hurdle for smaller business owners who are already operating