Question

"Ethics"  Please respond to the following:

• The SEC released its final rule to implement a code of ethics under SOX Title 404. The stock exchanges have proposed that each company listed on the exchanges publishes its code of ethics. Discuss whether or not these additional disclosures will both have a positive impact on public confidence and influence investors’ behavior. Support your position.
• Evaluate the impact that a company's code of conduct can have on promoting positive employee behavior, improved decision making, or the willingness to report unethical behavior of coworkers. Recommend at least two ethical policies that might encourage employees to report unethical behavior.

Answer 1

Answer: - Page 1 * Accooding to information;-; . » Every organisation is making various . decision on multiple areas and multiple level of authority within organisation. > code of Ethis is in place, organisation is setting a set of sules that it's employee has to follow especially during decision making for organisation that has maximum impact on organisation. - code of Ethics has helped organisation to improve their work culture and environment, employee accountability as well as improved and Valued decision making, Any investor of stakeholders not involved in day to day operation doesn't have visibility of operation nifty gritty,

Page 2 hence any disclosure related to operation Visibility. is always creaty certain level of confidence, on organisation operation. - with disclosure like code of Ethic document brings out the important disclosures taking place in organisation work Culture, environment, decision making and employee accountability lifts the investors or other stakeholders confidence i on organisation operation capability. =) Thus, these additional disclosures will have positive on public confidence and definately influence investor's behaviour, Evaluation ;- - code of Ethics has tremendous impact on employee behaviour acting as a control document on their behaviour or a pathway to decide in dual decision making situation.

Promoting positive Employee Behavious: - - Page 3 -). Due to conscientious of job, employee - are expected and do follow code of Ethics. -> oversight and action on ethic code vilators bring certain level of confidence on it and they incorporate in their daily partices resulting in ethical behaviour and ethical work culture. > code of Conduct is good in team building exercise and have positive impact on employee behaviour. . Improved Decision Making : - .. . . Code of Ethics helps employees in decision making and helping them to make legitimate and ethically correct decision making. ; .

page-4 Unethical Behaviour Reporting: - only and code of to follow unethical Ethics build confidence not omit but helps to report behaviour. Tw are: - Two Ethical policy are: I whistle Blower : To report any unethical behaviour ji, offering of Accepting Gifts or Gratitutes: - st pochibits accepting or offering gifts and gratitutes, - X - Please give me positive vote.