Read the article Governance in the Spotlight: What Sarbanes Oxley means to You. In this article the author outlines provisions companies are now required to implement. Consider the requirements imposed by Sarbanes Oxley on corporate boards of directors. Do small businesses and privately held companies have ethical duties? If so, to whom would they owe this duty? Employees? Customers? Vendors? Should the law impose ethical requirements on small businesses or privately held companies or can the marketplace police unethical business behavior? Provide support to justify your position.
Small businesses and privately held companies, as all companies, certainly have ethical duties to uphold. They must act ethically on behalf of their employees, their customers, their vendors, and their community as a whole. To their employees, companies owe them the duty of acting ethically to both set an example for how they should act in their professional and private lives, as well as to ensure the long term opportunity for them to earn a livelihood.
The company must act ethically so that the operations of their customers are not interrupted, and so that they pay a fair price. When companies engage in unethical behavior, things may fall apart rapidly, creating a situation where they cannot provide product to their customers who, in turn, may have to temporarily shut down production until alternate sources of materials can be located in a business-to-business relationship. In a business-to-consumer relationship, the ...
Business ethics and provisions are examined.