Question

The Portfolio Project requires you to write a memorandum to a decision-maker, such as the preside... The Portfolio Project requires you to write a memorandum to a decision-maker, such as the president of the United States, a member of Congress, a chairperson of the SEC, or a state Governor, on how to reform corporate ethics in American business today. As we have seen, legislation such as Sarbanes-Oxley has received considerable media attention, but has not prevented significant catastrophes such as the global economic meltdown of 2008. You should be prepared to propose policies that might help to ameliorate or to prevent corporate ethics lapses that might occur in the future. You have the freedom to select any policy avenues that you think might help to strengthen and fortify corporate ethics. Your memo should do the following: Set forth why your chosen policy pathway is important Compare it to and contrast it with the policy it replaces Articulate your ideas on how to remedy the issue of corporate malfeasance Proffer some recommendations to the decision-maker about how to improve overall corporate governance Please note that your prescription for change is not nearly as important as your ability to forecast potential challenges to the corporate boardroom and to predict possible ways the government could intervene to assist not only solid corporate governance, but also the interests of individual shareholders. It is recommended that you suggest at least two methods and/or policy proposals that critically address the public policy concern. Bring in facts and other data to support the policy issue addressed and make sure each fact is cited to the relevant authority. Demonstrate critical thinking by analyzing, evaluating and interpreting appropriate policy to provide original perspectives to enhance corporate legal and ethical environs. You are expected to convey complex ideas in a clear, concise and organized fashion, using the required and recommended readings from the course for analytical support. Although you are encouraged to cite from your textbook, you are required to cite a minimum of four scholarly sources beyond the textbook to support your statements.

Answer 1

NSWER I have a few thoughts on this. First, Sarbanes-Oxley does not get to the main point where corruption can strike. Yes, it binds CEOs, Board members, and the accountants to testify to the validity of the data, but, frankly, these people have the ability to duck many of the potential charges that may arise and they feel little personal risk for "stretching" the truth, when their reward for doing so (profit) can be so great. as a substitute, the law should go down further into an organization to get the lower level employees, the ones who are often told to hide, stretch, or "make it so" to meet the corporate demands, to swear not only to the genuineness of their info, but to also sign a document that they have not been threatened, forced, or otherwise told to hide, obscure, or fail to report any material and essential information required to correctly understand the financial reports produced by an organization. I would comprise the internal and external CPAs and accounting clerks who put the data together and their immediate supervisors on the list of those who need to sign. I would also insert HR employees and their supervisors to fill out those most likely to be aware of unprincipled behavior. There should be criminal charges for lying on such a document as it would then be fraud to the federal government. I would make this an SEC requirement. I would not use this to replace any policy but to enforce those already in place by requiring it of the employees as members of the organization in charge for what the organization produces for the public. This is why it, ideally, needs the legal power of legislation to ensure it is compulsory for all and a requirement of being a public company. I would begin the memo by providing a review of why ethics are essential to business and the profit it brings to an organization. I would then review where ethics have previously been dishonored in most other organizations focusing on how lower level employees are often key to unraveling these issues. Then propose the new policv. Conclude by reviewing why the new policy works to ensure ethical conduct and why it will benefit the organization.