Organizations that emphasize social responsibility and adhere to a set or corporate ethics will likely gain...

Organizations that emphasize social responsibility and adhere to a set or corporate ethics will likely gain competitive advantages in the market place and avoid costly litigation and loss of reputation. Due to high levels of corporate fraud in the 1990s with companies such as Enron and Global Crossing, Congress passed the Sarbanes Oxley Act of 2002 that set new increased standards for the boards of public U.S. companies and accounting firms. Read the different sections and provisions of the Sarbanes Oxley Act at the following link. http://www.soxlaw.com/ Discuss your overall thoughts on the Sarbanes Oxley Act and the provision that you feel is the most effective and why. Additionally do you believe that executives will become more ethical based on the legislation? Why or why not?

Solutions

Expert Solution

The Sarbanes Oxley act introduced to force all companies and accounting firms to produce a transparency in their financial reporting structure.The act consisted of 11 sections out of which some important sections are described briefly below.

The most important section is section 302 which clearly instructs the firms that it is a statutory requirement for every company to produce a clear and transparent financial report periodically which should be certified by proper authority.The certifying officer is responsible for any future anomaly which could be found in the future.This report should also contain any changes in internal control procedures.This act alone defines a very strong reason to follow certain rules for the companies to have ethical financial reporting structure.

Yes with these acts the executives will be more ethical as the laws instruct the companies to have a statutory requirement that every financial report be certified by company authority and the certifying person will be having sole responsibility for any future discrepancy.This law also says in section 802 that penalties and jail term will be imposed for any misconduct in reporting or any unethical behavior in financial reports. This also will force employees to become ethical.

keosha answered 1 month ago

Next > < Previous

Related Solutions

Business Ethics, Corporate Social Responsibility and Sustainability Business ethics, corporate social responsibility and sustainability are hot...

Business Ethics, Corporate Social Responsibility and Sustainability Business ethics, corporate social responsibility and sustainability are hot topics in engineering management. Having a grasp of these issues is vital for future leaders of engineering industries in the 21st Century. After conducting a comprehensive review of literature in the context of an engineering sector of your choice, find out what ethics, corporate social responsibility and sustainability (or a subset of these topics) means and what approaches is currently use to lead the...

what is the summary of ethics and how it relates to corporate social responsibility?

What is corporate social responsibility (CSR)? Is the principle of CSR one that is likely to...

What is corporate social responsibility (CSR)? Is the principle of CSR one that is likely to be widely adopted by companies around the world. Is it likely to significantly change corporate behaviour? Will behavioural change benefit the public? In your answer refer to examples of companies debating CSR or implementing practices of CSR.

corporate social responsibility

How does a company's code of ethics reinforce its Corporate Social Responsibility?

How are business ethics and corporate social responsibility related? One page Thanks

Panasonic company and analyse the company’s management of Business Ethics and Corporate Social Responsibility (CSR) The...

Panasonic company and analyse the company’s management of Business Ethics and Corporate Social Responsibility (CSR) The Company’s Management of Ethics  Discuss the company’s position on ethics and CSR, especially with example (300word)

Panasonic company and analyse the company’s management of Business Ethics and Corporate Social Responsibility (CSR) -...

Panasonic company and analyse the company’s management of Business Ethics and Corporate Social Responsibility (CSR) - each team in a tutorial group MUST choose a different company. A Executive Summary (one page)  Summarise the key findings and recommendations. This is NOT an Introduction. B Ethical Problems  Describe three (3) major ethical problems that have happened with the company in the recent past.  These should be actual cases supported by credible reports/sources.  Identify the causes (both...

Q3. (a) The conversation about the need for business organizations to undertake corporate social responsibility activities...

Q3. (a) The conversation about the need for business organizations to undertake corporate social responsibility activities continue to dominate board meetings and classrooms. Outline in a case of any company in Ghana, four (4) benefits of social responsibility activities to the case company. (b)While contemporary business has adapted to an increasingly globalized environment, the democratic structures and regulatory frameworks through which to contain business activity have not. As a consequence, governments and civil society have virtually no power to enforce...

a The conversation about the need for business organizations to undertake corporate social responsibility activities continue...

a The conversation about the need for business organizations to undertake corporate social responsibility activities continue to dominate board meetings and classrooms. Outline in a case of any company in Ghana, four (4) benefits of social responsibility activities to the case company.

Subjects