Carlyn J. Medley
January 23, 2012
Unethical Behavior Article Analysis
Before the Sarbanes-Oxley (SOX) Act of 2002 organizations were trusted to do the right thing and be ethical when posting information within their ledgers and journal. Unfortunately, some organizations were anything but ethical and moral. This realization became all too real when it was discovered the Enron and Arthur Andersen were participating in immoral and unethical acts that not only defrauded the government but the people as well.
Before the SOX Act of 2002 companies were able to:
* Falsify financial documents in the hopes of gratifying their own financial lusts. * Sell employment to individuals interested in or hiring unqualified individuals for available positions. * Financial records were not secured properly which allowed records and information to be changed. * Top executives would use sexual harassment to influence employees to falsify reports. (Oseni, 2011).
These are just a few examples of how organizations were able to falsify documents.
Since the induction of the SOX Act of 2002 very few companies possess the ability or attempt to falsify their financial documentation without fear of facing harsh punishments and fines. The SOX Act encourages individuals to blow the whistle on wrongdoers without increased risks to themselves. Unfortunately not everything is 100 percent fool proof and unforeseen loopholes can be found that will allow individuals to continue to act in immoral and unethical actions. Especially if the organization fails to incorporate internal controls to help control any immoral and unethical individuals.
Failing to incorporate internal controls within the organization would give the employees the ability to do more than falsify information. If duties are not delegated or monitored properly individuals will have the ability to write checks to themselves, create receipts and...