A Description of the Sarbanes Oxley Act

Pages: 1 (253 words) Published: October 28, 2008
Due to lack of transparency, fraudulent activities and window dressing of financial Reports, statuary and regulatory authorities were provoked to initiate a legal agreement which would stop theses activities, thus Sarbanes Oxley act was formed in 2002. The act is of core importance as it deals with proper representation and disclosure of financial data and restricts the tampering of financial records. Sarbanes Oxley act is a helpful tool in maintaining a healthy and a trustworthy relationship with the stakeholders of the company. As far as laws related to business ethics are concerned then laws like patent laws, international copyright laws and laws related to disclosure requirements like the Sarbanes Oxley act have had the greatest impact on organizational culture. For e.g. when these laws where not there people can easily copy the brands, copy recipes so in order to stop this intellectual copyright acts where developed. Similarly people can easily tamper the information and present illegal statistics but after disclosure acts and Sarbanes Oxley act that’s not the case. Thus we can say that these laws had a great impact on organizational ethics as these laws have portrayed business ethics in a new refined form and individual’s related to business like suppliers, retailers ,customers ,investors thus all the individuals directly or indirectly related to business are benefiting from these laws. On the other hand organization’s understands that what are their responsibilities and what requirements they have to fulfill if they have to remain in a successful corporate environment.
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