GOVERNMENT:List two or three of the main problems that Sarbanes-Oxley was intended tosolve, and how it was supposed to do that.
Does increased government regulationproduce a more ethical workplace? Why or why not? The Sarbanes-Oxley Act of 2002 provides new provisions topunish and prevent corporations for corruptions and accounting frauds, ensurejustice for violators, and protects shareholders and employees and itstrengthens responsibility and accountability in a corporate. One of the goalsof Sarbanes-Oxley Act of 2002 is to put back investors’ confidence in fiscalreporting and the public market because they should know that the financial statementsinformation of the organization they are viewing is truthful and reliable.Also, this law provides new legal protection for employees who report corporatemisconduct. Executives and directors must ensure that these controls arereliable and effective. It strengthens corporate oversight by creating thePublic Company Accounting Oversight Board (PCAOB). The Section 404 of SOXstates “the responsibility of management for establishing and maintaining anadequate internal control structure and procedures for financial reporting.” Itrequires organizations to develop and maintain strong systems of internalcontrol and improving internal control.
Also, independent auditors must verifythe adequacy of the internal control. So, I think increased government regulation produces a more ethicalworkplace because it protects from fraud in accounting and corruption incompanies, ensures strict penalties, strengthens corporate accountability andoversight. Thesis: Increased government regulation produces a moreethical workplace, because it protects organizations from fraud and corruption,ensures penalties for violators, promotes ethics, strengthens organization’sresponsibility, accountability, and oversight, and improves ethical cultures oforganizations. Sarbanes-Oxley was intended to solve accounting fraud andcorruption, and penalties for violators. There are penalties formisrepresenting financial statements. The most important thing that this act does is to make corporateexecutives be accountable for what appears on the company financial statements.Before sox was create, many companies like Enron reported falsely on theirfinancial statement.
So, now officers of the company are required to sign thefinancial statements for accuracy. The main goal of the law is to increaseconfidence in the financial reporting and to protect from intentionalmisrepresentation of facts, financial damage to another party, shareholder, andinvestors. Government regulations produce a more ethical workplacebecause having ethics in workplace are critical because they build up desiresand models for adequate conduct and values.
Business that expect to develop andflourish must have a commitment to act morally as do people. The thingsbusiness does and how they act morally, can have much bigger effects oncustomer and employees. It’s essential for business to be moral to guaranteethat a business doesn’t harm society, the nation, or the world through itsactivities.
So, being moral builds the corporation’s status because those whoaren’t ethical can’t promote merchandise. A corporation has to be in a positionto guide to the consumer, as well as deliver whatever they want and socialaccountability is required considering the fact that status holds an ethicaldeal of value in the world of businesses. Government rules helps to create inside controls whichhelps corporations and it keep away result with a view to produce or effects intimescales than would or else come up. For examples of laws include controls onmarket entries, costs, wages, progress approvals, air pollution results,employment in targeted companies, essential of making for goods. Regulationssetup by government provide guideline to organizations for a right behavior.Business cannot properly operate without an government regulations because itneed stability, efficiency, and uncorrupted system that will work. Regulationsare setup for monitoring and enforcement of principles, which makes workplacemore ethical. Regulation creates and constrains a right, creates aresponsibility, and allocates a responsibility.
The government has a responsibility to promote ethics inbusinesses as much as possibly by regulations. These regulations provideguidelines to minimum wage, advantages, safety and wellness compliance, workfor non-U.S. Citizens, working stipulations, equal opportunity employment, andprivateer’s laws. The government has an important position within the subjectof business ethics. For example, when an anti-competitive conduct can arisewhen companies grows, and when an enormous group has an extraordinarily great profit,this can be damaging to the companies.
Regulations in business creates thingsto be certain on compliance, reporting and oversight. These regulations are toinclined to strictly outline what’s and is not permissible endeavor leavingsituated organizations with much less options to develop. There also will bethat the costs and restrictions that are most unfair to the small businesses.Because the greater organizations the more they have responsibility buthowever, without ethics organizations cannot demonstrate to be good ethicalorganizations. Regulations forced on organizations by the government canbe split into four parts charges, representative, relations, and exchange.
Allorganizations are liable to pay taxes in measure of money/profit they make. Themeasure of those taxes is fundamentally dictated by the how much of workers abusiness utilizes and in what number of those employees are full time or parttime. Managers in businesses should take reasonability with governmentdirections with respect to the contracting and treatment of workers. Manyworker related controls are either straightforwardly or by implicationidentified with those rights conceded by government regulations. So, I thinkthe businesses should have certain regulations that are good of keepingbusinesses practice in accordance with codes in regards to well-being and goodethical workplace.
The government can have some types of influence on thebusiness workplace like indirect or direct. For example, some of theenvironments can be forcing and encouraging for businesses to follow. Thegovernment executive has many responsivities over the business.
The businesses atmosphere by way of themaking of policies, which is good for business ethical environment. Thegovernment has many of objectives and rules for creating a ethical workplace.The regulations are intention to have steady workplace and development, the lowcharges of inflation, a good buying and selling main issue of the business andlow unemployment. So, I think these are the reasons for business to followgovernment regulations that are sets up and these all need to be in workplace.
Businesses must have the potential to change or enhanceinstances where there are not acting ethically. They have responsibility andaccountability to manage or control the trade in a technique that it will notharm and this will be positively advantages for everyone inside theorganizations. Any decisions made bybusinesses have to be made with an informed recognition of the detailedsituation and then act according to a ethical system of principals. Also, thereare many regulations for business that are just right for progress on accountthat it restricts the bigger organizations from the market, permitting for thesmaller organizations to thrive of their small markets and not to worry aboutlarger organizations taking their market share away. These are going toimproves the confidence since they may be able to believe the manufacturer’sfinancials, can more without problems of growth and may have greater confidencethat organizations usually are not doing something illegal that governmentregulations don’t permit.
In conclusion, government has a important role in makingsure that business is operating in an ethical system much as possible. Thegovernment regulations in business are good because they will help when theyrun up in concerns and problems. Sometime this can be depending on thecircumstances or the situations.
In order to be excellent ethical workplaceevery employee and the mangers will have to fully grasp the value of moralvalues as a way to implement a transformation in the way in which an companyoperates, and what outcomes are expected. There are many advantages of havinggovernment regulations in workplace but there are also few disadvantages inthat it may damage also be in various manner equivalent to physical, harm toparticipants’ development, damage to employee’s profession, technologicaldamage and damage to respectable family members. So, Increased governmentregulation produce a more ethical workplace because ethics are the principlesand values a person uses to govern his routine in daily life. In anorganization, a code of ethics should be a set of ideas that makes theorganization in its everything it does, like the policies and decisions for thebusiness. The ethical as whole can be uses to behavior business can have animpact on the repute, productiveness, communities, and its employees. So, these are reasons why increasedgovernment regulations produce a more ethical workplace and governmentregulations has important role in making sure that business is operating in anethical system much as possible.