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The Sarbanes-Oxley Act of 2002 is a federal law that established sweeping auditing and financial regulations for public companies. Lawmakers created the legislation to help protect shareholders, employees and the public from accounting errors and fraudulent financial practices. Auditors, accountants and corporate officers became accountable for the new set of rules. These rules were amendments and additions to several laws enforced by the Securities and Exchange Commission ( SEC ), including the Securities and Exchange Act of 1934 and the Investment Advisers Act of 1940. The SEC enforces the Sarbanes-Oxley Act. The main areas that the Act is focused on are: Increasing criminal punishment Accounting regulation New protections Corporate responsibility The Act primarily sought to regulate financial reporting, internal audits and other business practices at publicly traded companies. However, some provisions apply to all enterprises, including private companies and nonprofit organizations....

The Organization of Economic Cooperation and Development (OECD) released its first set of corporate governance principles in 1999. A revised version was then released in 2004. The principles were developed and endorsed by the ministers of OECD member countries in order to help OECD and Non-OECD governments in their efforts to create legal and regulatory frameworks for corporate governance in their countries. The six OECD Principles are: Ensuring the basis of an effective corporate governance framework The rights of shareholders and key ownership functions The equitable treatment of shareholders The role of stakeholders in corporate governance Disclosure and transparency The responsibilities of the board 1.Ensure the basis of an effective corporate governance framework The corporate governance framework should promote transparent and efficient markets, be consistent with the rule of law and clearly articulate the division of responsibilities among different supervisory, regulatory and e...

  In December 1992, the Cadbury Committee published their Code of Best Practice. The recommendations, which largely reflected perceived best practice at the time, included separating the roles of CEO and chairman, having a minimum of three non‐executive directors on the board and the formulation of audit committees. The Code also advocated that a more active role be taken by institutional investors in the promotion of good practice in corporate governance. This paper discusses how agency problems may be (partially) resolved by corporate governance, reviews the evidence on compliance with the Cadbury Code and examines the relationship between board structure and firm performance, looking for evidence that the Code has enhanced board performance. While there is no empirical evidence of an association between board structure and firm value, there is some evidence that compliance with the Cadbury recommendations enhances board oversight with respect to the manipulation of accounting nu...

  Corporate governance is needed for the following reasons: 1. Separation of Ownership from Management: A company is run by its managers. Corporate governance ensures that managers work in the best interests of corporate owners (shareholders). 2. Global Capital: In today’s global world, global capital flows in markets which are well regulated and have high standards of efficiency and transparency. Good corporate governance gains credibility and trust of global market players. 3. Investor Protection: Investors are educated and enlightened of their rights. They want their rights to be protected by companies in which they have invested money. Corporate governance is an important tool that protects investors’ interests by improving efficiency of corporate enterprises. 4. Foreign Investments: Significant foreign institutional investment is taking place in India. These investors expect companies to adopt globally acceptable practices of corporate governance and well-developed capital mar...

Corporate governance is important for the following reasons: 1. It shapes the growth and future of capital markets of the economy. 2. It helps in raising adequate funds from capital markets. 3. It links the company's management system with its financial reporting system. 4. It enables management to take innovative decisions for effective functioning of an enterprise within the legal framework of accountability. 5. It supports investors by making corporate accounting practices transparent. Corporate enterprises have to disclose financial reporting structures. 6. It provides adequate and timely disclosure, reporting requirements, code of conduct etc. Companies present material price sensitive information to outsiders and ensure that till the time this information is made public, insiders abstain from dealing in corporate securities. It, thus, avoids insider trading. 7. It improves efficiency and effectiveness of an enterprise and adds to material wealth of the economy. 8. It improves...

1.Lust Lust is a psychological force producing intense desire for an object, or circumstance fulfilling the emotion while already having a significant other or amount of the desired object. Lust can take any form such as the lust for sexuality , love, money, or power. It can take such mundane forms as the lust for food as distinct from the need for food. Religions tend to draw a distinction between passion and lust by further categorizing lust as an immoral desire and passion as morally accepted. Lust is defined as immoral because its object or action of affection is improperly ordered according to natural law and/or the appetite for the particular object (e.g. sexual desire) is governing the person's intellect and will rather than the intellect and will governing the appetite for that object. In Hinduism, in the Bhagavad Gita , Lord Krishna , an Avatar of Vishnu , declared in chapter 16, verse 21 that lust is one of the gates to Naraka or hell. In Sikhism , lust is counted ...

INDIAN SCENARIO Much has been written about the benefits of doing business in India — low input costs, easy access to labor and a massive consumer base. Less has been said about the ability of companies in India to thrive by bending rules, greasing palms and broadening ethical boundaries. At a time when the issue of corruption threatens the stability of the Indian government and scandals unearthed in sectors from sports to telecommunications total tens of billions of dollars, it is becoming increasingly critical for multinational managers to ask whether business success in India comes at an ethical cost. India’s lax ethical standards, coupled with a rigid bureaucracy and weak enforcement mechanisms, have certainly hurt the country in many ways. The causes of this fiscal pain can be seen at the government, corporate and individual levels. As Ratan Tata, chairman of the Tata Group, observed, “If you choose not to participate in corruption, you leave behind a fair amount of business.” Sca...

 Transactional Ethics : Man is a social animal. He has to react with others through different transactions. Business transactions are the interaction between business and their customer. The practice of ethics in all these transactions is called transactional ethics. Eg. We need vegetables & fruits likewise the vendor needs customers like us for survival and we both are dependent on each other. Equality Honesty & Reciprocity is indicated as the domain of transactional ethics.    Participatory Ethics : Guided by the common good, all the participants follow some ethical practices. Participatory ethics is an integral part of business ethics; these are the actions some of which are guided by common interest and some shared interest by all participants involved in the business.  It is the ethics of civil society. By participating on a regular basis in common projects on behalf of the general welfare, a corporation demonstrates that it can take its corporate ...

  Importance / Significance: Stop business malpractices: Some unscrupulous businessmen do business malpractices by indulging in unfair trade practices like black-marketing, artificial high pricing, adulteration, cheating in weights and measures, selling of counterfeit (duplicate) and harmful products, illegal hoarding, etc. These business malpractices are harmful to consumers and the safety of society. Business ethics help to stop these malpractices and safeguard society. It creates a healthy business environment for everyone. Improve customers' confidence: Business ethics are needed to improve the customers' confidence about the quality, utility, reliability, quantity, price, etc. of the products. The customers have more trust and confidence in the businessmen who follow ethical business rules or principles. They feel safe that such businessmen will not cheat them. Ethics binds businessmen to maintain trust by offering quality products and services to customers. Survival of ...