preview

Code Of Ethics: The Sarbanes-Oxley Act

Better Essays

What is code of ethics? A code of ethics outlines fundamental principles. It requirements that can be used to set the basis for things one must and must not do. This paper will explain what a code of ethics is and does for a business, company, or organization, some provisions to the code, and the impact the Sarbanes-Oxley Act has on business America and the code of ethics. Let’s have a closer look at code of ethics. Though ethics are moral based, the business world also has a code of ethics. Those that are apart of the organization are expected to understand and apply examples in situations the code does specifically address. If the party does not comply with the code, disciplinary action will follow. Setting …show more content…

Every code is different because each set of codes adhere to the different types of business or organizations. All codes are in displayed in the company’s contracts of employment and displayed in HR and/ around the premises. These things along with the code of ethics are all set forth by Commission of Code Ethic. Though the ethics are apart of all companies procedures, over the years they have changed. One change in particular in July of 2002, The Sarbanes-Oxley Act, when passed, it caused a major problem with business ethics. This act was to reporting standards. This damaged the business world and collapsed some major companies between the years of 2002-2004. The act caused greed and manipulation to grow in corporations. (Corporate Ethics and …show more content…

The business world of ethics will never fully be free from flaws and ways of getting around them. Greed is very powerful, and so is having power. These two factors, along with dishonesty, are the reasons for codes of ethics. Though codes are different for every company, the bases for them are the same. In businesses HR department or displayed externally somewhere within the physical business, the code is

Get Access