The Act may create a new standard of internal controls applicable to all corporations, even in absence of legislation. Personal responsibility of company officers and directors is also emphasized, as they were perceived as lax in the past.
Lambert December 1, A Ethics article review paper done between Motorola and Ericsson on the implementation of Corporate Ethics and the transformation within the corporations following the implementation of the Sarbanes-Oxley Act oflooking at various ethic theories, such as stockholder theory, stakeholder theory, and legitimacy theory.
In order to achieve responsible ethical behavior, an organization must use the application of stakeholder theory in conjunction with structuration theory, which is the framework for exploring the forces that influence, and the changes that must precede the development and implementation of ethical decision processes Dillard and Yuthas, The legitimacy theory is a generalized perception that the actions of the organization are proper or appropriate within a given social system Lehtonen, Investors in the Stock Market rely on financial information issued by public companies for investment decisions.
This new requirement also must be understood in the context of major financial frauds. Since the Sarbanes-Oxley Act, which was enacted in response to the Enron and WorldCom collapses and designed to restore confidence and maintain integrity in businesses.
InMotorola was ranked sixth out of one hundred of the Best Corporate Citizens, from standing strong in its commitment to ethics. The reading assignments have explained some basic accounting practices and understanding these practices along with the Act will help me to understand my companies accounting policies.
Sarbenes-Oxley has broadened the role of auditors. The company functions on two basic principles, uncompromising integrity and constant respect for people.
Legitimacy theory holds that companies are continually attempting to ensure that their operations fall within the norms of their societies. Motorola finds corporate ethics to be critically important and had published its code of conduct inwith improvements made in and the final version done in to reflect the changed nature of their business needing to ensure a user-friendly Code that would apply around the world.
In order to protect the investors Congress passed the Sarbenes-Oxley Act in The Act also requires a greater emphasis on preventing fraud. While internal control has always been part of auditing, the new specific reporting requirements take things much further.
Investors need protection and the Act regulates many areas of corporate governance, which among other things requires top management to assume a higher level of formal responsibility.
Companies are to disclose if they have a code of ethics. The Act further specifies that regulators and legislators in each state should determine how to apply the rules to private companies locally.
The Act is in place to regulate and protect companies and their stakeholders so that scandals like ENRON will not happen again. An essential element of the Act is the independence of the accounting firm providing audit services. Management must also establish a system of checks and balances by introducing independent parties into corporate governance.
In addition to requiring the accounting firms to maintain independence, the Act requires public companies to keep its Board of Directors, and the Audit Committee of the Board of Directors independent as well.
Article Vs Assigned readings The article covers the main aspects of ethics in accounting and how past experiences such as ENRON have forced the government to create legislation to protect stakeholders.
Article Related to Job Being a business owner I work in every department of my company and need to be as educated as possible in all areas of business. The Audit Committee must include an independent financial expert, to assure that the Board has adequate understanding to be able perform related functions.
Keeping companies ethical benefits the stakeholders. The Stakeholder theory suggests that organizations are not only responsible to shareholders, but also that they are responsible to all individuals, group, etc.Ethics Article Review Paper (Revised) Shirley Smith University of Phoenix FIN Walter P.
Lambert December 1, A study done between Motorola and Ericsson on the implementation of Corporate Ethics and the transformation within the corporations following the implementation of the Sarbanes-Oxley Act oflooking.
Ethics Article Review Paper (Revised) Shirley Smith University of Phoenix FIN Walter P. Lambert December 1, A study done between Motorola and Ericsson on the implementation of Corporate Ethics and the transformation within the corporations following the implementation of the Sarbanes-Oxley Act oflooking at various.
If you experience difficulties accessing the paper, you might find this video helpful. and indicate to the editor whether you would be happy to review the revised article). If you are recommending a revision, you must furnish the author with a clear, sound explanation of why this is necessary.
A reviewer’s guide to ethics in. Essay Ethics Article Review. Words Aug 8th, 4 Pages. This paper will first provide a brief summary of an article that discusses ethics in accounting and financial decision-making.
After that, this article will be related to assigned readings and to an organization’s current accounting practices.
Read Ethics Article Review Paper free essay and over 88, other research documents. Ethics Article Review Paper. Ethics Article Review Paper (Revised) Shirley Smith University of Phoenix FIN Walter P.
Lambert December 1, A study /5(1). Ethics of Peer Review: A Guide for Manuscript Reviewers Sara Rockwell, Ph.D. and ethics, not only through their recommendations concerning which papers should be published and which should be rejected, but also through the tone and wording of their reviews and through the review the paper, he/she receives the full manuscript.Download