How to Reform Corporate Ethics in American Business Today
The Legal Environment of Business
Charles Belote
Colorado State University Global Campus
PLA 390 Portfolio Project
MGT-320
Memorandum
OUTLINE
1.0 Purpose
2.0 Introduction
3.0 Overview
4.0 Task
5.0 Corporate Governance Issues 5.1 Board of Directors 5.2 Shareholders 5.2.1 Implementation of Independent Auditors from Management 5.2.2 Setting up Effective Accounting Rules 5.3 Modern CEOs
6.0 The Role of Corporate Ethics
7.0 Recommended Policies to be Implemented 7.1 Sarbanes-Oxley Act 7.2 The California State Teachers’ Retirement System (CalSTRS)
8.0 The Required Way to Deal with Corporate Failure
9.0 Conclusion
10.0 Recommendation
To: The president of the United States
From: Charles E. Belote
July 27, 2012
Subject: How to Reform Corporate Ethics in American Business Today
1.0 Purpose This memorandum is specifically prepared to propose the appropriate policies that will need to be implemented to help in preventing the collapse of corporate ethics in the future. Some of the proposed policy avenues that might help in strengthening and further fortifying corporate ethics are also discussed. The memorandum clearly highlights why the proposed policies are considered an appropriate pathway to reforms and some of the recommendations are provided to the president on how to improve the overall corporate governance.
2.0 Introduction The modern corporate governance constitutes the stockholders, employees, suppliers and the community in which it conducts its operations. Since the 1800s, the corporate world has been accused of its failures to fulfil its mandated responsibilities. It is not until the start of the last century, that the business community was set free to organize its legal relations in any manner it chooses. The presence of increased industrialization towards the end of the 19th century gave rise to labour unions, which led to increased concentration of economic power into the hands of
Charles Belote
Colorado State University Global Campus
PLA 390 Portfolio Project
MGT-320
Memorandum
OUTLINE
1.0 Purpose
2.0 Introduction
3.0 Overview
4.0 Task
5.0 Corporate Governance Issues 5.1 Board of Directors 5.2 Shareholders 5.2.1 Implementation of Independent Auditors from Management 5.2.2 Setting up Effective Accounting Rules 5.3 Modern CEOs
6.0 The Role of Corporate Ethics
7.0 Recommended Policies to be Implemented 7.1 Sarbanes-Oxley Act 7.2 The California State Teachers’ Retirement System (CalSTRS)
8.0 The Required Way to Deal with Corporate Failure
9.0 Conclusion
10.0 Recommendation
To: The president of the United States
From: Charles E. Belote
July 27, 2012
Subject: How to Reform Corporate Ethics in American Business Today
1.0 Purpose This memorandum is specifically prepared to propose the appropriate policies that will need to be implemented to help in preventing the collapse of corporate ethics in the future. Some of the proposed policy avenues that might help in strengthening and further fortifying corporate ethics are also discussed. The memorandum clearly highlights why the proposed policies are considered an appropriate pathway to reforms and some of the recommendations are provided to the president on how to improve the overall corporate governance.
2.0 Introduction The modern corporate governance constitutes the stockholders, employees, suppliers and the community in which it conducts its operations. Since the 1800s, the corporate world has been accused of its failures to fulfil its mandated responsibilities. It is not until the start of the last century, that the business community was set free to organize its legal relations in any manner it chooses. The presence of increased industrialization towards the end of the 19th century gave rise to labour unions, which led to increased concentration of economic power into the hands of
References: CalSTRS. Corporate Governance Policies. (2003). Retrieved from http://www.calstrs.com/ Investments/cgpolicies.aspx Gillan, S.L., & Martin JD. (2007). Corporate governance post-Enron: Effective reforms, or losing the stable door? Journal of Corporate Finance, 13(5): 929-958 Hoffman, W. & Rowe, M. (2007). The ethics officer as agent of the board: Leveraging Ethical Governance Capability in the Post-Enron Corporation Li, Y. (2010). The Case Analysis of the Scandal of Enron. International journal of business and management vol