ipl-logo

Sarbanes-Oxley Act Essay

658 Words3 Pages

This leads into whether or not the Sarbanes-Oxley Act was a necessary enactment and why. According to Breena E. Coates, “organizational malfeasance arises from deep within the culture of mega-corporations, and that it exists in the collective issues of complexity and strategy and in individual forms of behavior.” Corporate culture today allows ethics to be forgotten or set aside with many negative impacts. These are situations that SOX is trying to overcome. Enron is an example of how greed and corporate bluffing can hurt peoples’ lives and communities. The SOX Act is necessary to prevent and discipline corporate and accounting fraud. The enactment of the Running Head: THE ENRON DEBACLE AND THE IMPLEMENTATION OF THE SOX ACT 4 Sarbanes-Oxley Act of 2002 was …show more content…

If the company executives use their rules as contextual and situational guidelines, so will their employees. That is an example how bad social morality or business ethics are born. On the other hand there are benefits to working in an ethical environment. According to Curtis C. Verschoor, CMA, “an ethical culture makes it easier to attract the most qualified employees and minimizes the cost of employee turnover and retraining, which results in optimal productivity and higher profitability.” So not only will having good business ethics get you the best employees, it is also more cost-effective. These strong ethics are important and will likely draw consumers in. These are benefits of enacting the SOX Act. This table below shows that management has become more ethical in the eyes of their employees as a result of this SOX Act: 1 Coates, B. E. (2004). Corporate Culture, Corporate Mischief, and Legislated Ethics: The Sarbanes-Oxley Act. Journal Of Public Affairs, 7(1), 39-58. Running Head: THE ENRON DEBACLE AND THE IMPLEMENTATION OF THE SOX ACT 5 With today’s complex companies and impact of their leadership, the SOX Act becomes

Show More
Related

The Pros And Cons Of SOX Scandal

104 Words | 1 Pages

It is very hard to say that SOX would prevented the scandal but they would have being exposed sooner because of the Sarbanes-Oxley section and titles rules and regulation such as; Titles II the auditors partner rotation; Title III, the responsibility or reporting accurate financial corporate reports. They reported depreciation expenses of garbage trucks as a salvage values, and subjective to other assets that did not have any value. Title IV the financial disclosures of financial reports was overstated or understated in some reports to inflates a high profit margin. The Titles VIII, the alteration and destruction of records that would protect the

Read More

Pinto Fires

413 Words | 2 Pages

Despite the world 's trend toward upholding business ethics, the major corporate scandals in the past decade including the familiar Enron, WorldCom, Tyco, AIG, and Madoff cases along with Toshiba 's disgrace in the recent days, send a clear and consistent message and that is: we are still living in an era of immaturity in ethical awareness. You may be thinking to yourself, "I have a high morale and I know I won 't give in to pressures to do something to make such a scene". While a high morale makes it more likely to act ethically, the problem is in reality when people face scenarios involving ethical issues, often they are not even aware of the ethical implications of their actions and so they think they 're doing the right thing. This is probably mainly because we subconsciously rely on the "ethical efficiency" of our guts to make judgments and internally carry an illusion of morality. Take Dennis Gioia, the Management and Organization Department Chair at PennState University, as an example.

Read More

Essay On Scarface And Double Indemnity

991 Words | 4 Pages

The American corporate system has long faced ethical concerns amongst the citizens of the United States. Often, corporate greed undermines morality and often furthers an agenda that puts profit ahead of people. A prime historical example of this case in ethical obligations is the case of the Enron Scandal of 2001. The CEOs of this Scandal hid millions of dollars of debt from their balance sheets and were able to extort money from shareholders based on surging stock prices, fueled solely on false pretenses propagated by the CEO (citation). This is a modern example of an ethical lapse by a corporate model catering to the public.

Read More

Wells Fargo Unethical Decisions Essay

654 Words | 3 Pages

However, it is up to the management to decide the future of the company and its employees. This is where the role of ethics comes in. If the management decides to act unethically for their own benefit, then the whole organization may end up paying the cost of an

Read More

Comcast: The Ethical Climate Of An Organization

403 Words | 2 Pages

The ethical climate of an organization can both impact the employees who join the firm, and be impacted by employees. For example, an individual who has thrived in a trusteeship and then joins a profit-maximizing organization, may struggle to assimilate to the culture, and ultimately leave. Conversely, a quality-of-life management organization may appoint a president or CEO whose style aligns with a profit-maximizing management structure, and that individual may drive a cultural change in the organization. Profit-maximizing organizations drive a corporate culture of serving one’s own interests, treating individuals as commodities to drive the bottom line, and values profits over people (Manning, & Curtis, 2012). A good example of a profit-maximizing environment can be found in the accounts of Goldman Sachs employees (Bourne, 2015).

Read More

Work Ethics By Lisa Mooney: Article Analysis

234 Words | 1 Pages

The article Advantages of Training Employees about Work Ethics by Lisa Mooney is about how important ethical training is at workplaces. The owner of a small business must make sure that his/her business is in reliable and accountable hands. Employee’s ethical training program is an important way to set up the ethical standards, and teach employees that integrity and team work is very important in the business. The atmosphere at workplace should be convenient so that all different types of personalities can work together.

Read More

Abc Ethics Program

1171 Words | 5 Pages

You asked I provide a brief memorandum setting forth my views as to whether or not ABC Institution should adopt a compliance and ethics program and if so, how ABC should create the framework. I. What is the relationship of compliance and ethics programs to evolving notions of corporate responsibility? Often referred to as “new,” Corporate Responsibility has its roots in U.S. history and business. Corporate responsibility is the commitment by companies to manage their activities in a responsible way. More broadly, it includes efforts by businesses to contribute to the society in which it operates.

Read More

Enron Ethical Dilemmas

1654 Words | 7 Pages

“Enron was a pioneer; they were risk takers and treated their employees like entrepreneurs. Think big; take chances, go where no one has gone before. Unfortunately, it now looks like Enron’s profit was as volatile as the natural gas they traded” (DeLongs, 2002). This dilemma was gradual and was years in the making. The simplest summary of the dilemma was that Enron was pushing a culture of promoting rule-bending and legal loopholes to continue their economic growth and success.

Read More

Enron Corporate Social Responsibility Paper

1527 Words | 7 Pages

The Enron scandal resulted in new compliance measures and assisted in putting in place new measures to close the gaps companies have used to evade

Read More

Good Business: An Ethics Workshop Summary

1560 Words | 7 Pages

Ability to take ethical and just decisions allows managers and employees to articulate and evaluate opinions and other points of view, which is the key to healthy workplace and business relationships. Workplace ethics should constitute an important part of employment since they are essential to the company’s goal of achieving profitability directly related to high moral and increased performance. Ethical practices brings in a concept of accountability towards work, of being honest and doing the right things with integrity, spirit of teamwork and commitment to the goals and visions of the workplace. The

Read More

Ethical Dilemmas Based On The Role Of Personal Ethics In Business

1180 Words | 5 Pages

Ethics in business are not just a passing fad. Ethics are foundation of any business. Ethics are the values that you invest in a business. When your organisation is ethical the employees in the organisation feel motivated to work in the organisation. I visited a company in which the main motto of their company in their mission statement was "To deliver value products and services to customers NOT under any cost.

Read More

Stakeholder Theory

997 Words | 4 Pages

According to research by Mayer, Aquino, Greenbaum, and Kuenzi (2012), moral leaders will often practice appropriate business ethics. In turn, the leader establishes similar positive ethical attribute in all fronts of their organization, since the employees and stakeholders are prompted to follow suit. This is in line with Terris’ (2005) opinion in the book Ethics at Work. Terris commends the Lockheed-Martin program for institutionalizing functioning work ethics at the administrative level (Terris, 2005, p. 47). Furthermore, according LRN research conducted in the United States, most of the full-time workers preferred working in an ethical company, suggesting the importance of leaders and stakeholders’ ethical behavior in the organization (Dubrin, 2010).

Read More

Ethical And Unethical Behavior

790 Words | 4 Pages

The level of probity and integrity needs to increase inside a company, to stimulate its employees to do what is morally right and avoid misconduct. Entrepreneurs have to keep in mind that, costumers have more respect and credibility in companies that have transparency and ethical corporate behavior. Having codes of ethics and codes of conduct in a company; is also a good way to reinforce how everyone should behave and this can help

Read More

Business Ethics: Ethics And Ethics In The Relationship

1685 Words | 7 Pages

Business ethics contributes to more benefits. Business ethics could become a standard to achieve advantages, cultivate team work of employee, productivity, moral and development, establish values for quality management, strategic planning and diversity management. Business ethics help the company to be survival of fierce competition. Business ethics have competitive advantages which involves effective building of relationships with the company’s stakeholders, which based on its integrity. Business ethics promote ethical behavior to protect business from abuse by unethical competitors.

Read More

Ethics In Business Law

1315 Words | 6 Pages

621), ironically the portion of workers that witnessed unethical or illegal misconduct at work has amplified. According to Journal of Business Ethics, in 2003 the ratio was at 22% with a quick jump into 2005 at a staggering 52% (Andreoli & Lefkowitz, 2008, p. 309) One of the major behavioral science disciplines that have contributed to the development of organizational behavior is management (Kashyap, 2017). So, even though legislation is a major component in that businesses operate in an ethical matter, ultimately - the responsibility lies with the business. Subsequently, having strict supervision to oversee all operations at such demands would more than likely have an adverse outcome in the business operation. So, it is important for the organization to understand, establish and demonstrate a business ethics framework relevant to the company.

Read More

More about Sarbanes-Oxley Act Essay

Open Document