Ethics and law in business and society Research Paper

Ethics and law in business and society - Research Paper ExampleEthics represents the doctrine related to deterrent example philosophy, which incorporates systematic, reason and recommending concepts that further intend to segregate between the right deeds and wrong deeds. The anthropomorphic view reflects close to the human behavior of following an order beneath the enforcement of lawThis view is generally adapted by individuals and entities as a phenomenon of natural pride for being able to provide a meaning to their world. Ironically, the underlying incident is that human beings pertain to be the actual source of morals and ethics. Therein, imposition of laws to raise the ethical old-hat of human beings is often contravened with skeptic arguments concerning its effectiveness. One such example had been the enactment of Hippocratic Oath, which has continued in the recent phenomenon, with the enactment of the Sarbanes-Oxley Act 2002. The Sarbanes-Oxley Act 2002 has been enacted to protect the investors, who invest in the form of securities by amend the accurateness and trustworthiness of the companys financial disclosure. This law was fundamentally enacted in retort to the frequent account of accounting scandals in early 2000s, especially drawing from the inferences in the Enron case. Correspondingly, this particular law complies with a motivation similar to that endured in the Hippocratic Oath to raise integrity and moral values amid the medical professionals and the physicians for practicing care for with truthfulness, unless in the paradigm of accountants and auditors in the 21st century context (Newsome & Wilson, 2006 Tyson, 2001). Although these two laws deal with assorted realms of professionalism, while the effectiveness and complete realization of the intended virtues of Hippocratic Oath in raising the moral values of medical practitioners remain dubious (Stern & Papadakis, 2006 Gilman, 2005), the effectiveness of Sarbanes-Oxley Act is imply ing the same for accountants and auditors has also been a surmount of major concern. Hence, the focal point of the discussion henceforth is not to differentiate between these two laws but is rather confined to precisely examine the roots and the effectiveness possibilities of Sarbanes-Oxley Act 2002 as a cake to stimulate moral understanding and develop conscience inwardly accountants and auditors to avoid instances such as Enrons collapse in the future. This essay, in precise, thus intends to discuss about the public policies associated with the Sarbanes-Oxley Act 2002 from a critical viewpoint. History of the Act Public Policy Prescription Section 302 of the Sarbanes-Oxley Act 2002 reflects about the financial root words that deficiency to incorporate certain certifications to prove its accuracy, transparency and legitimacy. The policy further stresses on the fact that it is the responsibility of the financial officers to review the report before signing their agreement to t he disclosed facts, in order to ensure that the report being framed does not entail Material Untrue Statement. Eventually, the signing officers are considered as solely responsible for the internal controls of a company and thus, the only enforcer to accounting integrity. Correspondingly, Sarbanes-Oxley Act 2002s constituent 401 incorporates the policies associated with the financial disclosures. In accordance to this particular section, the financial statements being published must be accurate. Furthermore, these financial statements must incorporate Material Off-Balance Sheet transactions or liabilities. The commission here is basically required to conduct a detailed study on the Off-Balance Transaction. According to the policies of Sarbanes-Oxley Act 2002 mentioned under section 404, the issuers must publish information concerning the scope along with the adequacy in the annual reports. Eventually, the section 409 of the concerned act focuses on the responsibilities of the issue rs to inform the public on immediate basis pertaining to any change(s), which occurs within their financial