Introduction
The compliance and ethics program was born out of necessity due to past corporate scandals. As long as companies handle the investments of shareholders, owners and managers have a fiduciary duty to ensure those assets and shareholders, as well as other stakeholder's interests, are protected. Compliance and ethics helps prevent and detect wrongdoing, builds a positive culture of trust, reduces corporate liability, reduces shareholder concerns, and helps employee's spot problems (Kaplan & Brennan, 2006). It is also interesting to note that if something does go wrong in the corporation; fines can be reduced by as much as 95% if the judge determines the company has an adequate program in place (Kaplan & Brennan, 2006). Therefore, it …show more content…
The ethics program itself is a process where the company determines guidelines and codes of conduct, which allows employees to complete day-to-day activities and tasks while making principled decisions based on the company's core set of values. Also, a well-thought-out program will assist management, and other personnel achieve the company's overall goals and mission in the most ethical manner. Furthermore, when the program consists of value-based concepts, it encourages employees to be committed to the process (Brooks & Dunn, 2012, p. 256). The goal is to maintain and grow the company's reputation in a positive manner.
"We are free to choose right and wrong, or good and evil, provided we can tell them apart and have the courage and the means to do so" (Mario Bunge, 1989)
Corporate …show more content…
However, in a study by Siney & Adams (2012) found that whistleblowers are a valuable source of information when it comes to problems and issues within the corporation. Therefore, including a form of protection or anonymity for the whistleblower is encouraged. The SEC and Sarbanes-Oxley require companies to establish an independent audit committee from the board of directors that can investigate and review claims made against others in the corporation (Siney & Adams, 2012). Ultimately, a whistleblower policy is fundamental to the business by reinforcing the company's overall values, and
The compliance and ethics program was born out of necessity due to past corporate scandals. As long as companies handle the investments of shareholders, owners and managers have a fiduciary duty to ensure those assets and shareholders, as well as other stakeholder's interests, are protected. Compliance and ethics helps prevent and detect wrongdoing, builds a positive culture of trust, reduces corporate liability, reduces shareholder concerns, and helps employee's spot problems (Kaplan & Brennan, 2006). It is also interesting to note that if something does go wrong in the corporation; fines can be reduced by as much as 95% if the judge determines the company has an adequate program in place (Kaplan & Brennan, 2006). Therefore, it …show more content…
The ethics program itself is a process where the company determines guidelines and codes of conduct, which allows employees to complete day-to-day activities and tasks while making principled decisions based on the company's core set of values. Also, a well-thought-out program will assist management, and other personnel achieve the company's overall goals and mission in the most ethical manner. Furthermore, when the program consists of value-based concepts, it encourages employees to be committed to the process (Brooks & Dunn, 2012, p. 256). The goal is to maintain and grow the company's reputation in a positive manner.
"We are free to choose right and wrong, or good and evil, provided we can tell them apart and have the courage and the means to do so" (Mario Bunge, 1989)
Corporate …show more content…
However, in a study by Siney & Adams (2012) found that whistleblowers are a valuable source of information when it comes to problems and issues within the corporation. Therefore, including a form of protection or anonymity for the whistleblower is encouraged. The SEC and Sarbanes-Oxley require companies to establish an independent audit committee from the board of directors that can investigate and review claims made against others in the corporation (Siney & Adams, 2012). Ultimately, a whistleblower policy is fundamental to the business by reinforcing the company's overall values, and