Sarbones Oxley Act Section 806 Case Study

One of the first things that needs to be addressed before any policies are put into place are how are violations reported and what happens when violations are reported? Violations can be reported in various methods. A person can call a toll-free number to report the violation. The violation can be reported via email or dropped in an ethics “drop box”. The final way an ethics violation can be reported is directly to immediate supervisor, department head, human resources person or member of the compliance team. One of the most important rules to be aware of with publicly traded companies is the Sarbones Oxley Act Section 806. Sox act protects “whistle-blowers” from receiving any negative actions regarding stepping up and reporting actions/practices

Another policy that should be put in is one that addresses hours and pay, employees want to know they will be paid fairly and within a reasonable time

In this specific situation I question Joe’s personal ethics. He accepted an expensive case of red wine, personal yacht rides/weekend outings with Bill and his wife. If this was a doctor, attorney, or insurance agent these gifts would be considered excessive and above and beyond the normal cost of doing business. Joe has an ethical duty to himself to be the best man/husband/salesman he can be. There’s been a history of fraternization between a sales person and client for the past few years. Bill has invited Joe and his wife on to his yacht for the weekend. Joe and Bill have a relationship that goes beyond just normal “client/salesman” to the area of friendship. This friendship is dangerous because now this client expects the salesman to undercut his already low price uniform price by 10%. The reason I think a policy is necessary is because without it the clients can bribe the sales people so they will cut prices to keep business. According to society of human resource managers, their sample policy in regards to gifting is as follows: the receipt of alcoholic beverages is discouraged, and using vendor 's facilities (vacation homes, etc.) by associates or families for personal use is prohibited. In the event the vendor is present for the duration of the visit such a situation is acceptable as long as it is only once per year and for limited duration, i.e. a long weekend. The associate must have prior approval from