Legal and Ethical Implications
As
the smoke is clearing from a decade of corporate scandal and deceit, it is
evident there is a desperate need for ethical implications from an
organizational and legal standpoint. Businesses such as Enron, Tyco, and
Countrywide singlehandedly robbed investors and defrauded stakeholders.
Millions lost jobs, homes, and retirement accounts. Yet, amidst such financial corruption and
economic turmoil, the United States Senator, Paul Sarbanes, and Congressman,
Michael Oxley each presented bills that would offer specific guidelines,
measures, and repercussions for financial and corporate fraud (New York State
Society of CPA’s, 2009). The Sarbanes Oxley act requires publicly-traded
companies to be appointed an oversight board, establish internal audit
committees, maintained and keep audit records for seven years, cooperate with
CPAs and investigations, and have annual inspections. Despite new legal implications, internal
ethical controls were crucial in preventing corporate greed, mistrust, and
fraud. Today, in conjunction with the Sarbanes-Oxley Act, importance is placed
in ethical leadership, ethical sourcing, environmental concerns, and global
ethical corporate citizenship.
Reflection
My
first artifact, Sarbanes-Oxley Act,
demonstrates the importance of legal regulatory guidance for financial
managers, business accountants, and ultimately the corporate executives
responsible for fiscal reporting. The Act requires publicly-traded companies to
be appointed an oversight board, establish internal audit committees, maintain
and keep audit records for seven years, cooperate with CPAs and investigations,
and have annual inspections (New York State Society of CPA’s, 2009). With growing popularity to ethical-training
programs, the Sarbanes-Oxley Act provides the legal backing and penalties to
ethical misstep. And while the Act does apply specifically to publically-traded
companies, private and non-profit organizations are strongly encouraged to
volunteer as every company has ethical and fiduciary responsibilities to financial
reporting. This artifact was chosen based on its importance of protecting the
American people, global investors, and economic stability. While I do not have
a personal role in fiscal reporting within my current organization, the ethical
input I provide will contributes to our responsible financial success.
1._sarbanes-oxley_act.docx | |
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My
second and third artifacts, Ethical
Leadership and Ethical Framework, support the dire need for responsible and
accountable management within organizations. Without a clearly outlined ethical
foundation, organizations are unable to identify neither moral decisions nor
how their corporation may impact society and the global economy (Millar &
Poole, 2011). The artifact, Ethical
Leadership, demonstrates a mastery ability to identify moral-based
character, ethical conduct, and associated behaviors. Further, it shows the
direct applicability to real-world global scenarios and its impact on people
and the environment. The artifact compares two companies, Toms Shoes and
British Petroleum, and each company’s efforts toward ethical citizenship. It
represents how ethical leadership (with an emphasis on philanthropy) can often
satisfy the triple bottom line: people, planet, and financial impacts. The
artifact, Ethical Framework, offers a
substantial analysis of the ethical behaviors and moral practices that are
typically deem appropriate for ethical leadership. However, the artifact debates
the “standard” for behavior as cultural, legal, political, and religious
variances make it nearly impossible for all individuals to behave under the
same beliefs. It compares current and historical
leaders each with disagreeable morals by a general standard. Finally, the artifact displays the vast
sensitivities of global, cultural, and traditional differences in ethical
corporate relationships. Ultimately, these artifacts represent the necessary
roles of ethical leaders and its direct correlation with organizational
success. Ethics must precede leadership in ethical leadership behavior; leadership
alone will not foster core values and moral principles.
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My
fourth artifact, Levi Strauss and Company,
was a wonderful study of an iconic brand committed to positively contributing
to the environment and providing consumers with ethically-sourced products.
Levi’s has long since been on the forefront of fashion and ethical
trend-setting. As one of the first companies to adapt corporate diversity,
Levi’s opened the first integrated factory in the South, long before it was
mandatory. Then, the organization introduced its “Terms of Engagement”
establishing guidelines for global operations and fair labor (Levi Strauss
& Co: History, 2013). The trend has continued as Levi’s has mandated
ethical sourcing for its products and has asked its suppliers to maintain the
same principles (Levi Strauss & Co: Sustainability, 2013). Additionally,
the company has committed to lowering carbon emissions by lowering resource
consumption, recycling used clothing, and drastically reducing water usage in
denim production. Ultimately, Levi’s ethical sourcing policies have greatly
contributed to its sustainability in this global environment. This artifact is
a great representation of the small, yet effective, initiatives that
corporations of all size can employ to decrease carbon emissions and sustain
profitable production.
4._levi_strauss_and_company.doc | |
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Much
like Levi Strauss and Company, my
fifth artifact, Environmental
Sustainability, explores two companies: one founded on
environmentally-sustainable operations and the other attempting to incorporate
such operations decades into establishment. The difference is astounding. This
artifact represents the global impact of companies who employ long-standing
environmental ethics and the difficulties with deferred incorporation. New
Belgium Beer has always looked for ways to conserve energy and resources.
Additionally, the company analyzes the total life-cycle of its products to
responsibly source, improve efficiency, and control waste. Sustainability is so
important to New Belgium employees that they each personally contributed to the
City of Fort Collins’ Wind Program, where the company gets 100% of its energy.
Tyson Foods, Inc., however, has been scrutinized for harmful operations. The
company came under fire in four states for the release of poisonous and
hazardous gases causing multiple injuries, property destruction, and one death.
Tyson Foods has violated the Clean-Air Act and the Clean-Water Act and are
subjects to many lawsuits. Now, in an effort to restore the company and
establish ethical and environmental standards, Tyson Foods is setting resource
conservation goals and employing environmental transportation methods.
Implementing such initiatives as a reactive approach is proving difficult for
Tyson as they have failed to meet several of its conservation goals. This
artifact is a great representation of consequences for negligence in
establishing environmentally-sound principles. Corporations should take heed of
the proactive approach companies like New Belgium Brewing are employing.
Ultimately, this artifact serves as an environmental-sustainable guide to small
business as they begin a journey into the global environment.
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My
sixth and final artifact, Global Ethical
Corporate Citizenship, demonstrates a mastery of knowledge of the triple
bottom line: people, the planet, and financial measures. There has been a vast
evolution of corporate interaction, a heightened awareness of global impact,
and ethical operations in the corporate economy. Thus, global ethical corporate
citizenship as manifested into proactive initiatives that benefit all aspects
of the triple bottom line. However, corporate citizenship has not developed
without opposition. This artifact addresses the challenges that corporations
face when attempting to offer fair treatment to a wide array of people. Just as
stakeholders often have conflicting interests in business, the ethical
management has difficulty satisfying such interests for each party. Thus, it is
important to address the ethical implications rather than erroneously
attempting to please too many individuals. Finally, this artifact presents
ideas on managing morality by leading through an ethical example. Corporations
have an obligation to establish core values, communicate expectations for those
values, and consistently practicing such values. This artifact is a beneficial
guideline for corporations who seek social responsibility and global ethical
citizenship. Additionally, it can be directly applied to small business,
non-profits, and even the family at home.
6._global_ethical_corporate_citizenship.docx | |
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Future Learning Goals
The
benefit to ethical and social-responsible initiatives is that efforts can begin
with just one person. Additionally, they can be applied to any type of business,
at any level, at any time. Thus, in order to contribute, I will be doing the
following:
1. Establishing a recycling program amongst my professional constituents
2. Researching more efficient modes of travel and delivery
3. Removing ambiguous verbiage from my published work as to eliminate “grey areas” of confusion and to offer a clear, ethical
message.
4. Research cultural differences before engaging in communications with both intra-national and international partners and employees.
In the Government-contracting service industry, livelihood is primarily based on associations. Thus, in the future, I hope to use this knowledge to establish higher-quality and more trustworthy relationships with partners, suppliers, and employees. Further, I plan to use philosophies of advanced companies, such as New Belgium Brewing, to not only reduce our resource consumption but positively contribute to renewable initiatives.
1. Establishing a recycling program amongst my professional constituents
2. Researching more efficient modes of travel and delivery
3. Removing ambiguous verbiage from my published work as to eliminate “grey areas” of confusion and to offer a clear, ethical
message.
4. Research cultural differences before engaging in communications with both intra-national and international partners and employees.
In the Government-contracting service industry, livelihood is primarily based on associations. Thus, in the future, I hope to use this knowledge to establish higher-quality and more trustworthy relationships with partners, suppliers, and employees. Further, I plan to use philosophies of advanced companies, such as New Belgium Brewing, to not only reduce our resource consumption but positively contribute to renewable initiatives.
References
Levi
Strauss and Company. (2013). Public Policy. Levi Strauss & Co: Sustainability.
Retrieved
from http://www.levistrauss.com/sustainability
Millar, C. & Poole, E..(2011). Ethical Leadership in a Global World – a Roadmap to the Book. In C.Millar, & E. Poole (Eds.), Ethical
Leadership: Global Challenges and Perspectives (pp. 6). New York, NY: Palgrave MacMillan.
New York State Society of CPA’s. (2009). The Sarbanes-Oxley Act of 2002. Retrieved from
http://www.nysscpa.org/oxleyact2002.htm dit.
from http://www.levistrauss.com/sustainability
Millar, C. & Poole, E..(2011). Ethical Leadership in a Global World – a Roadmap to the Book. In C.Millar, & E. Poole (Eds.), Ethical
Leadership: Global Challenges and Perspectives (pp. 6). New York, NY: Palgrave MacMillan.
New York State Society of CPA’s. (2009). The Sarbanes-Oxley Act of 2002. Retrieved from
http://www.nysscpa.org/oxleyact2002.htm dit.