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Regulation of Ethics: Microsoft's Corporate Governance System

Many professionals believe it is impossible to regulate ethics. Yet the SEC and other federal agencies provide rules, regulations, and laws surrounding corporate governance. How effective are the legal processes in regulating corporate governance? Provide an example.

Several laws, most recently Sarbanes-Oxley, have provided provisions requiring high ranking officials to certify that they have acted ethically in corporate governance and financial reporting. How effective are such laws in protecting the public? Please cite specific examples.

Executive officers within an organization will often feel compelled and tempted to emphasize short term results -- net income for the current year -- over long term success and company survival. Why would they be so inclined and what are the ethical implications of overemphasizing short-term results over long term success and solvency?

What are the ethical implications of the Microsoft corporate governance systems? How could Microsoft improve corporate governance?

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How Effective Are The Legal Processes In Regulating Corporate Governance? Provide an Example
Corporate governance refers to the rules, laws, or processes which govern the operations of a business for example a businesses' constitution. Well defined and enforced corporate governance will ensure the provision of a structure which is acceptable by every individual hence ensuring that the enterprise or an organization adheres to best practices as well as formal laws.

Corporate governance has received increased attention as a result of the high profile scandals which involves the abuse of corporate power and also in some cases alleged criminal activities by the corporate officers. The provisions for civil or criminal persecution of individual who are involved in unethical or illegal acts are considered as an integral part for an effective corporate governance regime.

Legal processes are considered effective in regulating corporate governance for example, the Corporate Social Responsibility, (CRC) is a form of corporate self regulation which is integrated into the business model to function as a built in, self regulating mechanism, where the business will monitor and ensure that its actively complying with the spirit of the law, ethical standards and international norms (Kocmanová, Hřebíček & Dočekalová, 2011).

How Effective Are Such Laws In Protecting The Public? Please Cite Specific Examples:

Sarbanes-Oxley regulates public companies and also has repercussions on companies which are privately held and also not profit making organizations. The act was signed into law back in the 2002 by President Bush. The Bill was passed to assist in the curbing of the massive fraud and corruption which was underway in the United States. The bill therefore had a purpose of protecting the primary investors through improving its ...

Solution Summary

This solution discusses Microsoft's corporate governance system and their regulation of ethics.