Omirbekov Abylay SC-KL-00042554 BABM
Name: Omirbekov Abylay
SEGI ID: SC-KL-00042554
Coursework: Portfolio
Course: UOG BABM
Submission date: 9.12.2013
Lecture name: Segaram Rajaram
Part-2, Article 1
"Business ethics related to corporate legislation"
At the first of 21st century many ethical corporate scandal occurred for the legislation requirements for organization. During the 2001, is has become a major problems happened by Enron and Arthur Andersen about pure accountancy. Lack of pure accountancy the firms become bankrupt and make lost thousands of employees job lose as well as their valuable retirement savings (Epstein, 2008). The year of 2002, it was even worst then 2001. The world's giant companies like WorldCom as well as Tyco did fraud scandal. Government was forced to pass the pass the 2002 Sarbanes-Oxley Act. It is also known as SOX that instructed the new ways of business process. The financial scandals those were occurred in the fiscal years 2001 and 02, many corporation responded to legislation reforms to rise up concern about financial report of firms in the world.
Institute of Business Ethics
Lehman Brothers Rockefeller centre
Business Ethics Quarterly(Jones, 2013). The main purpose for the new legislation act called SOX was to make assure doubting stakeholder that the firms is the subjected to bigger oversight that will help to restore the confidence of stakeholder. The survey held by tow Wall Street Journal and NBC show that more than 57% of general public believe that corporate leaders like board of director, CEO, as well as senior executives losing their corporation standards and values for over 20 years( Hellweg, 2002). The act of SOX helps to develop the financial standards and encourage to financial officers to increase the expectation of Ethical standard (Hopkins, 2012).
However SOX did not detect the disastrous misconduct of corporation for the less than decade later. The importance of ethical business conduct was not highlighted in...