There are several situations that can unethical behaviors and practices. In 2002 the Sarbanes-Oxley Act was made law to stop unethical situations that where taken place in many companies, big or small when a company practice unethical practices, there can be lots of damage to the company. In many instances law has at best led to a culture of compliance rather than a culture of integrity.
Even more disappointing is that too often the very activities Sarbanes Oxley was designed to prevent companies to slip past regulators until it is too late and the damage incurred (Hazels, B. (2010).
The best example of an unethical accounting situation is when a company falsifies their earning reports to make the company appear to be more profitable. This is a clear case of accounting fraud and is a false report given to the stockholders, a real lie. The list goes on and on about companies that violate financial reports and end up in prison.
Many argue that the implementation and ongoing requirements of Sarbanes Oxley and other laws are costly, time consuming, and as yet ineffective. Recent evidence suggests that for some organizations these requirements and the associated punishments are not a sufficient deterrent. In many instances law has at best led to a culture of compliance rather than a culture of integrity. Even more disappointing is that too often the very activities Sarbanes Oxley was designed to prevent continue to slip past regulators until it is too late and the damage incurred (Hazels, B. (2010).
The Essay on Factors That Project Company Culture
These positive behaviors are expressed through the employee’s customer service. For businesses, customer loyalty and retention are most important. To retain these things, employees would greet customers, converse with them through small, listen, etc. These simple techniques are what give a company its culture. The company’s behavior patterns establish its culture and may be perceived as favorable ...
After studying about the success rate of the SOX, it appears that the victories are far and few especially for the whistle blowers. The provisions of SOX are supposed to make it easier and less risky for employees to report bad corporate behavior by protecting employees from retaliation. But few, if any, complaints filed to date by whistleblowers that have faced alleged retaliation have resulted in wins. In part, this is due to the costly and arduous legal task of starting a complaint with the Department of Labor. Companies are also required by SOX section 806 to file within 90 days of the violation (Bannon, S; Ford, K; Meltzer, L, Jul 2010).
Take a look at these statics and give your opinion if the rules SOX are working. Employees reported an increase in the ethical culture of their workplace, from 53% in 2007 to 62% in 2009. Measures of ethical culture include ethical leadership, accountability, and values. In the 2009 survey, 49% of employees observed misconduct, compared to 56% in 2007. In the aftermath of Enron and the dot-com bubble, there was also a significant decline in this measurement, from 55% in 2000 to 46% in 2003.
