Effect of Unethical Behavior Essay

The Securities and Exchange Commission was fixd in 1934 to police the U. S. pecuniary markets. Today, the Securities and Exchange Commission continues to create legislation tightening reporting standards and providing more than transparency. Unfortunately, increasing standards often comes after a failure of the system. The Sarbanes-Oxley stage of 2002 is a principal(a) example of legislation following financial market failure. Sarbanes-Oxley influenced public businesses by chemise of the financial system.The July 2002 enactment of the Sarbanes Oxley Act, co-authored by U. S. Sen. capital of Minnesota Sarbanes of Maryland and U.S. Rep. Michael Oxley of Ohio, followed a series of elephantine public company failures that included Enron, Tyco and WorldCom. Sarbanes-Oxley communicate investor confidence and fraud through better of the public company reporting standards. However, ofttimes wrong in the market occurred with the recess of several major companies between 2002 an d 2004. (smallbusiness. chron. com). The restore of wrong manner is do itn by many companies, and form done damage to individuals, and businesses as well. The results of unethical behavior on a large scale would be the Enron, Tyco, and Global Crossing, or WorldCom.Greediness direct to report unethical promises, and with that certain individuals became the ones who had told on their companies. Falsifying financial reports is dishonest and unethical because the financial records are supposed to project financial results of a business, and how it is growing. When accountants or managers brood about the revenue and cash prey it misleads prospective investors, stockholders, employees, and the U. S. government. So many billions of dollars have been hidden in the paperwork, and financial statements.If I had found inconsistencies in the financial statements where I worked I would have to go through the chain of command to let them k right off of what I have found and if there was nothing done then I would then think about departure outside to tell someone so I could cover myself. Unethical behavior led to the end of Enron, and the other companies, and to financial issues for many individuals all over the joined States. As a result of the unethical behavior of several companies there is now the Sarbanes-Oxley Act. All companies, must comply with the Sarbanes Oxley Act of 2002. The Sarbanes-Oxley Act set guidelines for ethical accounting practices.