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    Sarbanes Oxley Act and Ethics

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    Do you think that businesses are more ethical after the passing of the Sarbanes Oxley Act?

    What examples are there to support you answer?

    © BrainMass Inc. brainmass.com April 3, 2020, 6:10 pm ad1c9bdddf
    https://brainmass.com/business/business-philosophy-and-ethics/sarbanes-oxley-act-and-ethics-196554

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    Do you think that businesses are more ethical after the passing of the Sarbanes Oxley Act?

    Businesses in general are more compliant with the Sarbanes Oxley Act because of the penal provisions contained in the act. After the Sarbanes Oxley Act, if an officer signs a statement and that statement is found to be false he can be jailed. So, there is a strong deterrent action against businesses behaving in an unethical manner.

    Sarbanes Oxley Act sections 302 and 404 ensure that the companies now have a strong internal control system. In other words, they have fewer opportunities for being unethical. Sarbanes Oxley Act section 802 gives criminal penalties for violations and this makes the officers wary of acting unethically. Section 1107 prescribes criminal penalties for ...

    Solution Summary

    This solution discusses the effect of the Sarbanes Oxley Act in business ethics with examples in approximately 500 words.

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