Explore BrainMass
Share

Explore BrainMass

    Does SOX imply that the primary purpose of laws governing co

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Does SOX imply that the primary purpose of laws governing corporate responsibility is deterrence? And what ethical theories support the regulation?

    © BrainMass Inc. brainmass.com October 10, 2019, 2:56 am ad1c9bdddf
    https://brainmass.com/business/the-role-of-government-and-regulation/does-sox-imply-that-the-primary-purpose-of-laws-governing-co-400444

    Solution Preview

    Does SOX imply that the primary purpose of laws governing corporate responsibility is deterrence? And what ethical theories support the regulation?

    Solution:

    Does SOX imply that the primary purpose of laws governing corporate responsibility is deterrence?

    SOX directly implies and establishes that the primary purpose of laws governing corporate responsibility is deterrence. Let's look at what caused SOX in the first place. One of the main reasons for establishment was a complete LACK of corporate governance. No senior executive wanted to take responsibility and owned up to the mayhem that went on in their companies, during the major accounting scandals that took place (namely Enron and WorldCom). Executives claimed mostly ignorance. Due to what happened in each case, people lost thousands. Jobs, retirement plans, savings, all were lost. The communities were also ...

    Solution Summary

    Does SOX imply that the primary purpose of laws governing corporate responsibility is deterrence? And what ethical theories support the regulation?

    $2.19