BUS 600 - Week 3 Assignment #2 -> ethical dilemma

What could be an ethical dilemma you face in your business?

One of the ethical challenges would be the accuracy of accounting record keeping; my business is required to obey the Sarbanes-Oxley Act. As a result of the corporate scandals of the late 1990s and early 2000s, Congress was forced to legislate ethics in corporate America. This federal law is called the Sarbanes-Oxley Act which has four rules that a business needs to follow:
(1) Financial Accounting Rules
I will have an audit committee to work with our Chief executive officer (CEO) and Chief financial officer (CFO) to certify that the financial statements are fairly present the financial condition and the results of the company.
(2) Internal Control Rules
Our CEO and CFO must certify the working system of internal controls over financial reporting and I will have outside auditors to evaluate of its system of internal controls.
(3) Executive Ethical Conduct Rules
CEO and CFO will require to return compensation if financial statements are restated due to ‘material noncompliance’ with reporting requirements. Of course my company (if it’s public) cannot make loans to executive officers or directors.
(4) Ethical Conduct Rules for Related Parties.
I will have new professional responsibilities for my company lawyer and new conflict-of-interest rules for my financial analysts.

I will have a system to track these internal controls and make regular audit to make sure that people involved in these rules are following the rules. With these controls, it can save my business from fraud and corruption and save the future of my company.