MGT 430 Unit 1 IP - 1 Unit 1 Individual Project Lorraine...

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1 Unit 1 Individual Project Lorraine Huff MGT430-1003B-01: Business Management American Intercontinental University July 24, 2010
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2 Introduction A code of ethics is meant to set a standard for businesses to operate under. They are constructed to ensure that no fraudulent activities are taking place within the company that could harm their reputation, customer base, or their employees. The ideals that are included in this code provide interested persons with a guide that will help them to make decisions that will make certain that no harm or foul will come from their actions. Some company members will implement a code of ethics to promote ethical conduct and to proclaim the organization’s standards and principles. Sarbanes-Oxley Act Code of Ethics and Requirements to Meet the Code On October 16, 2002, the Security and Exchange Commission, or SEC, voted to implement the provisions of the Sarbanes-Oxley Act. The Sarbanes-Oxley Act required companies to give any information about audit committee financial experts, company code of ethics, and internal control reports. It also forbade any actions by companies that could persuade auditors, such as bribery, gifts, or money. There were requirements given to meet the code. The companies would be expected to maintain ethical and honest actions, which included resolutions of any conflicts of interest between professional or personal relationships. Next, the company would agree to fulfillment of all regulations, rules, and laws. The company would also be expected to provide documents and reports to the SEC of any and all code violations and would be held accountable for their obedience to the code. The Sarbanes-Oxley Act is expected to be upheld by all companies who are involved in any way with the SEC. Publicly Held Companies A publicly held company is a company that sells itself to the public through stocks. These public companies deal with the U.S. stock exchange and are required to follow the code of ethics that the SEC created with the Sarbanes-Oxley Act. These companies are required to submit quarterly reports with the SEC to ensure that it is following the requirements of the code of ethics. These reports include earnings reports which are also made available to the public and stockholders. These companies can raise capital by selling their stocks, which can be used for projects or even expansions. Newell Rubbermaid Inc., Johnson and Johnson, and IFCO Systems are all companies who have implemented a code of ethics that they claim follows the Sarbanes- Oxley Act regulations. Newell Rubbermaid Inc. Newell Rubbermaid Inc. values its employees and expects all employees to observe the highest standards of business conduct and ethics. Newell Rubbermaid has built an excellent reputation for honesty and integrity with employees, customers, suppliers, stockholders and the general public. Our reputation is a valuable asset, and we must all work together to protect it
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This note was uploaded on 01/18/2012 for the course MGT 430 taught by Professor Kimberlybennett during the Spring '10 term at American InterContinental University.

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MGT 430 Unit 1 IP - 1 Unit 1 Individual Project Lorraine...

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