Sarbanes Oxley was enacted in response to widespread ethics violations. Do publicly traded companies owe ethical duties to their investors beyond making a profit? In the business world, is there a difference between what is fair and what is ethical? Has information learned in this class challenged your ideas about business and ethics? Explain.© BrainMass Inc. brainmass.com June 4, 2020, 3:42 am ad1c9bdddf
Do publicly traded companies owe ethical duties to their investors beyond making a profit?
Publicly traded companies always owe ethical duties to their investors beyond making a profit. This is the reason why the SEC, the AICPA, and the FASB all have codes of conduct and consequences for ethical violations. The Sarbanes-Oxley Act (SOX) is only part of where the ethical duties reside for publicly traded companies. Company executives need to understand that without their investors, they would have been out of business years ago. While the customers keep the business running and in operation, the ...
The solution discusses Sarbanes Oxley.