Essay about Regulatory Measures Of The Sarbanes Oxley Act ( Sox )

1279 Words Apr 17th, 2015 6 Pages
Regulatory Measures
Tynese Maxwell
OOM 640
Andree Swanson
April 13, 2015 Regulatory Measures Institutionalization in business ethics relates to established laws, customs, and expected organizational programs that are considered normative in establishing reputation. (Ferrell et al., 2013, p.93) Our government has had regulatory control over businesses since the first recognition of business ethics in the 1960s. It was not until the 1990s, when business ethics was institutionalized and corporate corruption was on the rise, that regulatory compliance programs governing business ethics and social responsibility were implemented. In this paper we will examine the Federal Sentencing Guidelines for Organizations (FSGO), the Sarbanes-Oxley Act (SOX), the Consumer Financial Protection Bureau (CFPB), events that lead to these laws being created, the impact these laws have on business ethics, and how legislation intended to reform corporate abuse. Rules and regulations are created to bring about order and ensure that individuals conduct themselves in a certain manner. Consequentially, if a rule is broken, some form of punishment is given. During the 1990s, there was an increase in corporate corruption. Unethical and illegal behaviors relating to conflict of interest, racketeering, privacy, labeling and copyright trademark infringement, and price fixing were on the rise. (Ferrell et al., 1998) With all these violations being made, the courts needed some type of…

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