Ethical Decision Making The Sarbanes-Oxley Act Essay

Is ethics concerning decision making merely an accepted way of life, a trust factor, or a concern for reputation? Is ethical thinking and decision making conclusions right for one individual or firm and wrong for another? Do ethics encompass a universal concept or do they reside solely in an individual realm such as one’s Id or ego as Freud claimed? Finally, do acts such as The Sarbanes-Oxley Act (SOX) create a sound solution to the problem of ethical or non-ethical decision making in public firms? According to many scholars, the subject of corporate ethical decision making has many different avenues, such as what Zhong states â€Å"involves(ing) systematic and analytic deliberation† which also involve â€Å"intelligent choices†. While both†¦show more content†¦How has our recent dismay, concerns, and the actions of firms concerning ethical thinking, or the lack thereof relates to the past observations and does our recent laws and directives, such as SOX create as safety net to investors, employees, and the economy as well as drives the ethical decision making of CEO’s and CFO’s of public companies? Who benefits? Advantages and Disadvantages of the Sarbanes-Oxley Act of 2002 Should CEOs and CFOs be held accountable for fraudulent accounting practices? Should investors have complete and accurate information regarding potential investments? Following the Enron scandal in 2001, when Enron filed for bankruptcy after it was discovered that the company employed improper accounting practices, the alarm rang on Capitol Hill and the Sarbanes-Oxley Act (SOX) of 2002 was penned. SOX is one of the most significant regulatory reform’s since the Great Depression (McAdams et al, 2009, p.390). No longer was it publicly acceptable in the United States for CEOs and CFOs to lead their companies toward disaster and then use golden parachutes on the way down. As thousands of Enron’s employees lost everything, accountability of those who made millions leading companies was at the forefront. As we seek to evaluate the advantages and disadvantages of SOX legislation, we must understand why there was a need for significant reform. Prior to this Act, government oversight of publicly heldShow MoreRelatedSarbanes Oxley Act Of 2002 Essay1421 Words   |  6 PagesSarbanes Oxley Act Jason Stigal FIN/571 November 6, 2016 James Traylor Abstract Enron’s fraudulent financial practices lead to the Sarbanes Oxley Act of 2002. Mistakes made by the company and their leadership shocked the world and cost billions. Enron’s leadership could have taken steps to prevent or mitigate the repercussions of their actions. The act restored ethical and reliable financial practices to the market.The major provisions of the act made corporations responsibility forRead MoreEssay Ethics Article Review886 Words   |  4 Pagesaround business practices. Included in these businesses practices are accounting and financial decision-making. Both of these require high standards of ethics as many people rely on the information produced by them. The lack of ethics results in misinformation and the lack of trust. This paper will first provide a brief summary of an article that discusses ethics in accounting and financial decision-making. After that, this article will be related to assigned readings and to an organization’s currentRead MoreEvents Leading Up to the The Sarbanes-Oxley Act Essay examples1203 Words   |  5 PagesThe Sarbanes-Oxley Act was enacted on July 30, 2002. It was enacted by the 107th United States Congress. It is named after sponsors U.S. Senator Paul Sarbanes and U.S. Representative Michael G. Oxley. It is also known as the ‘Public Company Accounting Reform and Investor Protection Act’ in the Senate and ‘Corporate and Auditing Accountability and Responsibility Act’ in the House. The main purpose of this act was to protect investors by improving the accuracy and reliability of corporate disclosuresRead MoreSarbanes-Oxley Act Essay727 Words   |  3 PagesSarbanes-Oxley Act Dana Smith LAW/321 December 6, 2011 Michelle Hamilton Sarbanes-Oxley Act In the corporate world today the rules and regulations are stricter than they were in early 2000. The development of corporate governance that established procedures to be used by officers and directors for lines of responsibility, approval, oversight by key stockholders, and set the rules for corporate decision making became more extreme. The Sarbanes-Oxley Act (SOX) of 2002 made the use ofRead MoreSarbanes Oxley And The Oxley Act1358 Words   |  6 Pagestaken place were so severe that an Act was created in response to them in hopes to prevent these scandals from happening. The Sarbanes-Oxley Act, also referred to as SOX or Sarbanes-Oxley, was created by Senator Paul Sarbanes and Representative Michael Oxley and was signed into law by President George W. Bush on July 30, 2002. The creation and passing of the act was so tremendous that â€Å"in the opinion of most observers of securities legislation† Sarbanes-Oxley was â€Å"viewed as the most important newRead MoreLW C1 Study Guide1467 Words   |  6 Pagesthrough this student plan, type in your answers to the questions below and create a study guide using the key terms from each section. You may also consider using the key terms to create flash cards that can be used as you prepare for the exam. ETHICAL ISSUES IN BUSINESS: Chapters 1-4 For each of the chapters do the following: Look up the answers to the questions asked below. Answer the end of chapter question (there are only a few) and check your answers. Complete the interactive quizzesRead MoreImportance of Ethics in Accounting1065 Words   |  5 Pagesaccounting industry is constantly growing and changing. Consequently, difficult decisions have to be made every day. While accountants follow a simple code of conduct; nevertheless, due to the infamous scandal of Enron, the Sarbanes-Oxley Act of 2002 was constructed to reestablish confidence in the public marketplace. The importance of ethics and integrity are highly significant to individuals in this profession. In fact, ethical behavior in accounting is described as â€Å"societies accepted standards ofRead MoreWeek 1 Knowledge Check1287 Words   |  6 PagesCompany Mission 100% 9 10 11 Company Goals and Objectives 100% 12 13 Three Levels of Strategy à ¢ Corporate, Business-Level, Functional 100% 14 15 Strategic Management Process 100% 17 18 Sarbanes-Oxley Act of 2002 Management Ethics 16 Concept: The Stakeholder Approach to Social Responsibility. Concepts Mastery The Stakeholder Approach to Social Responsibility. 0% Questions 1 2 1. For the past 28 years, ABC, IncRead MoreSarbanes Oxley Act of 2002 Essay1294 Words   |  6 PagesSarbanes-Oxley Act of 2002 ACC/561 Sarbanes-Oxley Act of 2002 Following a number of discovered fraud scandals committed by well-known corporations and in order to restore public confidence in the stock market and trading of securities, the United States congress passed the Sarbanes-Oxley Act in the year 2002. As a result of the act endorsement by the New York Stock Exchange and the Securities and Exchange Commission, among many other national overseeing committees, a number of rules and regulationsRead MoreEssay about Details of the Sarbanes Oxley Act 20021060 Words   |  5 Pagesfindings properly. Since the Sarbanes-Oxley Act, there have been provisions that have directly affected auditors. This paper will include the details of the Sarbanes-Oxley Act, how ethics and independence have affected auditors, as well implementation of new standards based on the Sarbanes-Oxley Act. The Sarbanes-Oxley Act of 2002, provided changes in the regulations of the issuers in the public structures in the United States, as well as non-United States issuers. The Act applies to all issuers including