Online Legal and Ethical Environment of Business Discussion
Order ID 53563633773 Type Essay Writer Level Masters Style APA Sources/References 4 Perfect Number of Pages to Order 5-10 Pages
Online Legal and Ethical Environment of Business Discussion
Part 1 (post this response in the main U2 DB thread “Unit 2 Discussion Board”)
One common point of debate in law is whether laws should be changed based upon the times or circumstances. It has been a consideration since the Founding Fathers created the Constitution.
For this debate discussion, your task is to consider this issue, as it relates specifically to two particular laws. The topic up for debate: should the Dodd-Frank Act and the Sarbanes-Oxley Act be flexible and change based upon the times or circumstances.
Part 2 (post this response in the appropriate topic within U2 DB (labeled “for” and “against”)
Based on the first initial of your last name, complete the following:
First initial A-L: Provide an argument for the value in changing these two laws based on times/circumstances. Submit your position by posting in the Unit 2 Debate forum under the for topic.
First initial M-Z: Provide an argument against the ability of laws to be modified based on times/ circumstances. Submit your position by posting in the Unit 2 Debate f orum under the against topic.
In both considerations, provide research that supports your assertions.
Responses to Other Students: Review the opposing thread comments.
Respond to at least two of your classmates in the opposing thread with at least a 100-word reply about their Primary Task Response regarding items you found to be compelling and enlightening.
response for student number one: Chad Clyburn
I am glad to see that this week’s discussion board is closely aligned with my topic from last week. I am a firm believer that businesses need to be governed closely from the moment that they allow outside investors. Both the Dodd-Frank Act and the Sarbanes-Oxley Act provide governance over businesses to help protect the investor.
“The Sarbanes Oxley act in 2002 (SOX,) which greatly increased the duties of board directors – as well as penalties, if they failed to meet their duties” (Hartung, 2015). The most impactful part of this legislation is that it requires to use independent auditors which greatly increases thorough research and reporting. This reduces a business’s ability to “fudge the numbers” if you will. The requirement of board members to have more knowledge of operations establishes more accountability for all members (Hartung, 2015).
The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 provides even more protection to investors. This reform greatly increased the level of transparency that organizations had to provide to their investors, thus, greatly reducing the risk of misrepresentation (The laws, n.d.). This transparency allows partners and investors to conduct thorough research on organizations to better determine to whom they will engage.
With all of the reform that has taken place with securities over the past decade or so, there is still plenty of room for improvement. With the uptick of social media, we have seen a massive increase in securities violations. This will be the next area that more regulation should be derived. I posted specific instances last week in my post. Please, refer to it for more specific instances.
Hartung, A. (August 16, 2015). Regulations Work: Benefits of SOX and Dodd – Frank. Forbes. Retrieved from: https://www.forbes.com/sites/adamhartung/2015/08/16/regulations-work-benefits-of-sox-and-dodd-frank/#1dcef3481157
The laws that govern the securities industry. (n.d.). U.S. Securities and Exchange Commission. Retrieved from: https://www.sec.gov/answers/about-lawsshtml.html
the other paart of Chad’s post ( the for/ against part)
The primary reason for changing the Sarbanes-Oxley act and the Dodd-Frank act is that it can be seen as a violation of rights. We all have the right to freedom, the pursuit of happiness, and free speech; creating legislation on how we have to conduct business, and what we can and cannot say is a breach of that right. Why does the government have the right to tell business not to lie or keep secrets and not the rest of the population? I understand that publicly traded companies should ethically tell the truth to their investors, but where are the ethics interpreting one’s rights differently based on a given situation?
This stance is quite hard to defend when I clearly fall on the other side of the line. I hope I was able to provide you with a different point of view
response for the other student post :Jeff Peters
If society could trust people to be ethical and do what’s right, you would see less laws enacted
and less oversight of businesses. However, when it comes to making money society does not
want to stop the cash cow when its coming in. We have seen this since the beginning of times
and more specifically during the 1800’s and 1900’s when Kings and Queens were taxing
everyone and we have seen the revolts against that in fact in the early days of America when we
had the Boston Tea party pushing back on the British empire. As the United States grew over
the industrial age and move into the mass production age, we’ve seen businesses grow and the
owners kept getting richer while their workers made very little money. The growth rate far
outpaced the blue-collar worker by pay, hours worked per day and week. The United States
government typically moves slower or in reaction to situations that cause society to almost cave
into bankruptcy or collapse all together. Below are a couple of examples in the past 20 years we
have seen the government make changes into law to help prevent these issues come back.
- Sarbanes Oxley act in 2002
President Bush signed the Sarbanes Oxley Act (SOX) July 30th, 2002 and said “the most far
reaching reforms of American business practices since the time of Franklin Delano
Roosevelt” (U.S. securities and exchange commission, 2013) Once this became law in really put
pressure on board of directors to take responsibility for the company’s actions. If you cooked the
books you would go to jail and some people tried and they ended up in jail. The law
implemented procedures that would look for illegal acts from the company and its board and the
board would also be required to understand what the internal controls were in place and held
accountable. This law created penalties for the CEOs and CFOs that fudged any numbers in
their financials or acted against anyone that called them out into the open that included criminal
action by the courts. The SOX law added great value in transparency, accountability, and
diversity. Diversity in the board by having women and people of color part of the board has
improved work performance and results. Boards now are proactive interviewing and looking for
the best person to join their board that will help drive the business in results but also have core
values that bring the community and sustainability as a partnership.
- Dodd-Frank Wall Street Reform and Consumer Protections Act of 2010
President Obama signed Dodd-Frank law in July 21st, 2010. With the collapse of Wall street and
the banking institutions the United States government created a law that would regulate the
system in several areas not limited to consumer protection, trading restrictions, credit
ratings, regulation of financial products, corporate governance and disclosure, and transparency.
(U.S. securities and exchange commission, 2013). The U.S. government wanted to make sure
its citizens were protected from risky banking behaviors, so the Dodd-Frank law created a
greater transparency requirements that included details even to the CEO compensation being
linked to company performance and the compensation of its employees. The law created
allowed investors to vote on compensation packages for the CEO.
the other post for Jeff ( for / against part)
Why should we make more laws? We already have the Dodd-Frank law and SOX law that cover rights for
diversity, transparency, and accountability. So why do we need more or make changes to the current
law. We want less laws not more so companies will hire more workers instead of hiring more oversight
staff. If the companies do not make money, then they go out of business and then who wins when I am
unemployed. We all have rights, but no one is going to help me pay rent, buy food, and take care of my
children so I need to work and make money to do these things. The government has already made the
changes but I do not want more changes that will influence companies and in turn they make
changes in their policies and business practices that I do not want to adhere to because usually it makes
more work and less fun at work.
I also appreciate the laws and do not want them to be taken away or changed as they have helped make
necessary changes to protect me from being taken advantage of companies that do not want to make
the right choices and stand back as employees lose their pensions, 401k, and benefits from a scandal. It
covers diversity in the board and holds the board accountable to run a business properly, so I do not
want to make changes to the law.
QUALITY OF RESPONSE NO RESPONSE POOR / UNSATISFACTORY SATISFACTORY GOOD EXCELLENT Content (worth a maximum of 50% of the total points) Zero points: Student failed to submit the final paper. 20 points out of 50: The essay illustrates poor understanding of the relevant material by failing to address or incorrectly addressing the relevant content; failing to identify or inaccurately explaining/defining key concepts/ideas; ignoring or incorrectly explaining key points/claims and the reasoning behind them; and/or incorrectly or inappropriately using terminology; and elements of the response are lacking. 30 points out of 50: The essay illustrates a rudimentary understanding of the relevant material by mentioning but not full explaining the relevant content; identifying some of the key concepts/ideas though failing to fully or accurately explain many of them; using terminology, though sometimes inaccurately or inappropriately; and/or incorporating some key claims/points but failing to explain the reasoning behind them or doing so inaccurately. Elements of the required response may also be lacking. 40 points out of 50: The essay illustrates solid understanding of the relevant material by correctly addressing most of the relevant content; identifying and explaining most of the key concepts/ideas; using correct terminology; explaining the reasoning behind most of the key points/claims; and/or where necessary or useful, substantiating some points with accurate examples. The answer is complete. 50 points: The essay illustrates exemplary understanding of the relevant material by thoroughly and correctly addressing the relevant content; identifying and explaining all of the key concepts/ideas; using correct terminology explaining the reasoning behind key points/claims and substantiating, as necessary/useful, points with several accurate and illuminating examples. No aspects of the required answer are missing. Use of Sources (worth a maximum of 20% of the total points). Zero points: Student failed to include citations and/or references. Or the student failed to submit a final paper. 5 out 20 points: Sources are seldom cited to support statements and/or format of citations are not recognizable as APA 6th Edition format. There are major errors in the formation of the references and citations. And/or there is a major reliance on highly questionable. The Student fails to provide an adequate synthesis of research collected for the paper. 10 out 20 points: References to scholarly sources are occasionally given; many statements seem unsubstantiated. Frequent errors in APA 6th Edition format, leaving the reader confused about the source of the information. There are significant errors of the formation in the references and citations. And/or there is a significant use of highly questionable sources. 15 out 20 points: Credible Scholarly sources are used effectively support claims and are, for the most part, clear and fairly represented. APA 6th Edition is used with only a few minor errors. There are minor errors in reference and/or citations. And/or there is some use of questionable sources. 20 points: Credible scholarly sources are used to give compelling evidence to support claims and are clearly and fairly represented. APA 6th Edition format is used accurately and consistently. The student uses above the maximum required references in the development of the assignment. 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Structure of the Paper (worth 10% of total points) Zero points: Student failed to submit the final paper. 3 points out of 10: Student needs to develop better formatting skills. The paper omits significant structural elements required for and APA 6th edition paper. Formatting of the paper has major flaws. The paper does not conform to APA 6th edition requirements whatsoever. 5 points out of 10: Appearance of final paper demonstrates the student’s limited ability to format the paper. There are significant errors in formatting and/or the total omission of major components of an APA 6th edition paper. They can include the omission of the cover page, abstract, and page numbers. Additionally the page has major formatting issues with spacing or paragraph formation. Font size might not conform to size requirements. The student also significantly writes too large or too short of and paper 7 points out of 10: Research paper presents an above-average use of formatting skills. The paper has slight errors within the paper. This can include small errors or omissions with the cover page, abstract, page number, and headers. There could be also slight formatting issues with the document spacing or the font Additionally the paper might slightly exceed or undershoot the specific number of required written pages for the assignment. 10 points: Student provides a high-caliber, formatted paper. This includes an APA 6th edition cover page, abstract, page number, headers and is double spaced in 12’ Times Roman Font. Additionally, the paper conforms to the specific number of required written pages and neither goes over or under the specified length of the paper.
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