Effect of Unethical Behavior Essay

The Securities and Exchange committee was created in 1934 to police the U. S. pecuniary markets. Today, the Securities and Exchange Commission continues to create legislation tightening reporting standards and providing more transparency. Unfortunately, increasing standards practically comes after a failure of the system. The Sarbanes-Oxley Act of 2002 is a primary event of legislation following financial market failure. Sarbanes-Oxley influenced public businesses through with(predicate) rendering of the financial system.The July 2002 enactment of the Sarbanes Oxley Act, co-authored by U. S. Sen. Paul Sarbanes of Maryland and U.S. Rep. Michael Oxley of Ohio, followed a serial publication of mountainous public company failures that included Enron, Tyco and WorldCom. Sarbanes-Oxley addressed investor confidence and cunning through reform of the public company reporting standards. However, much wrongfulness in the market occurred with the collapse of several major companies bet ween 2002 and 2004. (smallbusiness. chron. com). The meeting of unethical behavior is known by many companies, and have do damage to individuals, and businesses as well. The topics of unethical behavior on a large scale would be the Enron, Tyco, and Global Crossing, or WorldCom.Greediness led to accounting system unethical promises, and with that certain individuals became the ones who had told on their companies. Falsifying financial reports is dishonest and unethical because the financial records are supposed to show financial results of a business, and how it is growing. When accountants or managers lie about the revenue and cash flow it misleads prospective investors, stockholders, employees, and the U. S. government. So many billions of dollars have been hidden in the paperwork, and financial statements.If I had represent inconsistencies in the financial statements where I worked I would have to go through the chain of command to let them know of what I have bring and if there was nothing done then I would then remember about going outside to tell someone so I could cover myself. Unethical behavior led to the end of Enron, and the other companies, and to financial issues for many individuals all over the United States. As a result of the unethical behavior of several companies there is now the Sarbanes-Oxley Act. All companies, moldiness comply with the Sarbanes Oxley Act of 2002. The Sarbanes-Oxley Act set guidelines for ethical accounting practices.