This paper investigates the ability of the Sarbanes-Oxley Act (SOX) to promote corporate ethics by evaluating the effect of the Government in Ethics Act of 1978 on government ethics.
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Paper Summary:
This paper explains that the Sarbanes-Oxley (SOX) Act of 2002, a set of complex regulations designed to enforce corporate accountability and responsibility, represents one of the most important business reform acts since the Securities Exchange Act of 1934. The author points out that the Government in Ethics Act of 1978, which established a comprehensive code of ethics for federal officials, not only the House and Senate but also the entire government including the executive branch, requires government officers to file financial disclosure statements in order to make it possible to identify conflicts of interest and places tighter restrictions on executive-branch employees' ability to register as lobbyists after leaving government service. The paper concludes that, although there are benefits to adhering to the Government in Ethics or the Sarbanes-Oxley Acts, without any real enforcement or retribution for violations, these federal legislation measures appear to be emblematic of the old adage: Same story, different day.
Table of Contents
Thesis Statement
Sarbanes-Oxley Act of 2002
Intended Consequences
Government in Ethics Act
Financial Disclosures
Conflicts of Interest
Sarbanes-Oxley Implementation
Advantages
Disadvantages
Ethics in Government Act
Advantages
Disadvantages
Conclusion
From the Paper:
"One of the more significant measures associated with the act is the disclosure of personal finances and investments. This evaluation is intended to be the initial step with identifying any possible conflicts of interest that an appointee or government employee may have (or become party to) during their tenure with the government. Also, for some employees -executive branch, presidential appointees, certain military and policy makers-their records must be made public. Considering this type of scrutiny, one has to ask the question in regards to private sector corporations: Would a Chief Executive Officer (CEO) or Chief Financial Officer (CFO) subject themselves and their families to this type of intense violation of privacy and scrutiny?"
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