Sarbanes-Oxley Act: The Role Of Ethical Practices In Business

In today business world, it is about making a profit. Some companies have managerial staff whose focus is primarily on profit building. A profit is produce when there is an excess in income over operational and expenditures cost. In an essence, the ability to produce goods or services at a lower cost to maximize income output for a company. As businesses incur revenue, there are challenges and social responsibilities that come along with it. What are some of these challenges and how do business deal with them? Competing to obtain a profit can make some companies lose sight of the ultimate goal of keeping the customers safe, happy, and satisfied to ensure their repeat business. As a result, this may open the door for unethical practices to come in. Companies that practice unethical behaviors can jeopardize trust; affect the economy and surrounding factors such as suppliers, consumers, cost, and maybe confronted with social responsibilities in a negative way to the company. For instance, in the textbook, An Introduction to Business Ethics, by Joseph DesJardins, he gives reference to a scandal that involved fraudulent interest rate practices. This issue of the unethical fraudulent banking practices has

In addition to compliance officers, Congress passed the Sarbanes-Oxley Act in 2002. The textbook discuss section 406 of Sarbanes-Oxley Act as it refers to the “Code of Ethics for Senior Financial Officers,” and the standards, regulations, rules, honesty, along with ethical values use to promote it (DesJardins, 2014). If unethical acts are performed, there are many unfavorable consequences, for instances the reputation of company, company can forfeit their position in the marketplace, and employees can even be incarcerated, according to the textbook. It is clear to maintain a profitably business one must make ethical