Corporation Ethics Essay

2642 Words May 30th, 2011 11 Pages
Corporation Ethics The study of ethics within corporations is a study of applied ethics that examine moral and ethical dilemmas, and ethical principles that come up in the business world. It is an important subject in today’s business world; with the scandals that are in the business news around the world. It is crucial that business organizations question their principles in every area, from product testing, customer service, to working in the global economy. The list of corruption cases in the world are growing in number. It is becoming a problem that governments across the globe have to face. Greed is usually the driving force in corruption around the world regardless of the industry. “To be really greedy, a person has to …show more content…
1). It is clear that the business world must handle their practices in a more ethical way. The most important way to handle ethical problems in business before they influence the quality of the business and its clients is to tackle the situation before it starts. The best way to do this is to make a code of conduct or code of ethics. A code of ethics is a set of ethics that a company voluntarily agrees to follow. “Section 406 of the Sarbanes-Oxley Act requires publicly traded companies to disclose if they have a code of ethics for senior financial officers, and if not, why not. Few companies will wish to explain why they do not have such a code, so it is likely that those publicly traded companies that do not have a code of ethics are in the process of developing one. Those companies that already have a code of ethics are probably reviewing them for compliance with the law’s requirements. According to the act, a code of ethics comprises standards “reasonably necessary to promote — (1) honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships; (2) full, fair, accurate, timely, and understandable disclosure in the periodic reports required to be filed by the issuer; and (3) compliance with applicable

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