Running Head: ETHICS AND LAW IN BUSINESS AND SOCIETY Topic: Ethics and Law in Business and Society Date: Introduction: With the coming into effect of the Public Company Accounting Reform and Investor Protection Act, the so-called Sarbanes Oxley Act (SOX) in the year 2002, the US corporate world was meant to radically change…
Download file to see previous pages...
However, there are those who say that the price is not commensurate to the benefits that the law appears to be bringing to the corporate world and especially when it comes to the high compliance costs. History and Implementation of SOX: Following several high profile accounting scandals in the 1990s and particularly the infamous Enron and WorldCom scandals, the ensuing intense soul-searching in the US corporate world concluded that effective safeguards needed to put in place if a repeat of the two scandals was to be completely obviated and if the investor confidence was to be restored. This is how the Public Company Accounting Reform Protection Act, the so-called Sarbanes-Oxley Act was conceived. Enacted in July of 2002, the Sarbanes Oxley Act was informed by need to put an end to corporate scandals and particularly to restore the public confidence in the capital markets (Roberts, & Mahoney, 2004). According to Section 404(a) of this Act, the management ought to not only assess but also report on the effectiveness of the business internal controls over financial reporting (Roberts, & Mahoney, 2004). ...
There are a number of laws governing SEC, however and after the 1940’s Investment Adviser Act, SOX is arguably SEC’s most recent law that it is charged to oversee. Other than SEC, SOX has implementation power that it exercises through the US Department of Justice whose primary function is to prosecute the federal crimes that are associated with acts like; conspiring or even attempting to commit fraud, verifying false financial statements, destroying or tampering with documents, and retaliating against whistleblowers (Heath, & Norman, 2004). In corroboration with the office of the Attorney General, the FBI (Federal Bureau of Investigation) is charged with the responsibility of investigating crime related with corporate fraud while still retaining its mandate as the only detective agency that can investigate and apprehend those accused of committing corporate bad behavior (Heath, & Norman, 2004). SOX immense power can be looked from its Titles that include; acting as a Public Company Accounting Oversight Body; enforcing the independence of auditors; policing corporate responsibility; improving financial disclosures; analyzing conflict of interest; upholding the accountability of corporate and criminal fraud; and enhancing penalties on white collar crimes (Brannick, & Roche, 1887). According to Section 404 of the Sarbanes-Oxley Act, SEC was to adopt rules requiring the management of all companies with publicly traded securities (apart from registered investment companies) to annually report their assessment of the effectiveness of their internal controls as well as an auditor’s independent confirmation of the effectiveness of the said internal controls. Adopted on 27th March 2003, these rules laid out
...Download file to see next pagesRead More
Cite this document
(“Ethics and Law in Business and Society. History and Implementation of Research Paper”, n.d.)
Retrieved from https://studentshare.org/business/1393614-ethics-and-law-in-business-and-society
(Ethics and Law in Business and Society. History and Implementation of Research Paper)
“Ethics and Law in Business and Society. History and Implementation of Research Paper”, n.d. https://studentshare.org/business/1393614-ethics-and-law-in-business-and-society.
4. Enhancing and developing skills of moral judgment, reading, persuasive speaking and writing. 5. Formulating practical; frame work for any decision making 6. Enhancing proper knowledge on hoe to encourage and maintain ethical, corporate climates. Business ethics defines the application of an ethical value to all business behavior ethics is not an ethereal abstraction and is a practical aid to business problem solving.
Moreover, the study will explore the relationship between business ethics and profitability of the business. Introduction Business ethics can be defined as the morality that results from a person’s own moral standards in the context of the environment in which the business operates.
Ethics is ideas upon which human beings act. Every company is a comprised of a group of people and is thus a society within a bigger society. All societies have mechanisms of inculcation of values and beliefs into their members. The socialization process inculcates values and beliefs into an individual.
This view is generally adapted by individuals and entities as a phenomenon of natural pride for being able to provide a meaning to their world. Ironically, the underlying fact is that human beings pertain to be the actual source of morals and ethics.
Plan and produce the strategic plan for parties involved internally and externally for a better understanding of all. It is also important to establish a tracking system for the strategic plan at all levels of implementation. All of this can be achieved through
It is used in both private and government hospitals as most patients prefer it to human surgery. The use of the modern equipment requires privacy and only the doctor in charge of the surgery should access information from the
se insurance companies are charging high premium prices from those who are already experiencing diseases and their managers and executive are walking around with heavy profits in their pockets. Another issue is that the drug producing companies have increased their drug prices.
The act, which was approved by the house in 2002 after 423votes were in favor and President George Bush signed it into law, aims at curbing the corporate and accounting standards that were experienced in US for example the Worldcom and Enron. After the implementation of SOX,