Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

Can Business Conduct Be Legislated by a Code of Ethics?

0
Posted

Can Business Conduct Be Legislated by a Code of Ethics?

0

Download Article PDF Editor’s Note: This is the second in a series of articles by the author on policies and procedures dealing with accounting and regulatory issues. The Sarbanes-Oxley Act (“SOX Act”) requires public companies, including cooperatives that register their stock with the Securities and Exchange Commission (“SEC”), to disclose whether or not they have adopted a code of ethics for senior financial officers. While the SOX Act does not mandate that a public company have a code of ethics, the SOX Act does state that if a public company does not have a code of ethics, the company must disclose that it does not, and “the reason therefore.” The message to public companies is fairly clear – you should have a code of ethics. The SOX Act defines a code of ethics as standards that are “reasonably necessary” to promote: • honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships, • full, fair

Related Questions

What is your question?

*Sadly, we had to bring back ads too. Hopefully more targeted.