Effects of Unethical Behavior

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Effects of Unethical Behavior Article

David Haynes

ACC/291

October 8, 2012

Celeste Garrett

Effects of Unethical Behavior Article

There are several situations that can unethical behaviors and practices. In 2002 the Sarbanes-Oxley Act was made law to stop unethical situations that where taken place in many companies, big or small when a company practice unethical practices, there can be lots of damage to the company. In many instances law has at best led to a culture of compliance rather than a culture of integrity. Even more disappointing is that too often the very activities Sarbanes Oxley was designed to prevent companies to slip past regulators until it is too late and the damage incurred (Hazels, B. (2010). The best example of an unethical accounting situation is when a company falsifies their earning reports to make the company appear to be more profitable. This is a clear case of accounting fraud and is a false report given to the stockholders, a real lie. The list goes on and on about companies that violate financial reports and end up in prison. Many argue that the implementation and ongoing requirements of Sarbanes Oxley and other laws are costly, time consuming, and as yet ineffective. Recent evidence suggests that for some organizations these requirements and the associated punishments are not a sufficient deterrent. In many instances law has at best led to a culture of compliance rather than a culture of integrity. Even more disappointing is that too often the very activities Sarbanes Oxley was designed to prevent continue to slip past regulators until it is too late and the damage incurred (Hazels, B. (2010).

After studying about the success rate of the SOX, it appears that the victories are far and few especially for the whistle blowers. The provisions of SOX are supposed to make it easier and less risky for employees to report bad corporate behavior by protecting employees...
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