SCHOOL OF BUSINESS ADMINISTRATION Business & Society ETLW 302D Tara Ceranic Salinas, PhD.

Slides:



Advertisements
Similar presentations
Building on Our Core Values Building on Our Core Values © 2003 by the AICPA The Sarbanes-Oxley Act.
Advertisements

Sarbanes-Oxley Act of 2002 UAA – ACCT 316 – Fall 2003 Accounting Information Systems Dr. Fred Barbee.
1 4 th session: Corporate Governance – Sarbanes Oxley Performance Evaluation IMSc in Business Administration October-November 2009.
Chapter 7 Control and AIS Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 7-1.
Forces of Change Don H. Hansen Health Care Services Partner
Sarbanes-Oxley Act of Benefits of Act Three quarters of the financial executives in the Oversight Systems survey said that their company had realized.
Sarbanes-Oxley Act. 2 What Is It? Act passed by Congress in response to the recent and continuing corporate scandals. Signed into law July 30, Established.
MANAGERIAL ACCOUNTING AND THE BUSINESS ENVIRONMENT Chapter 1 PowerPoint Authors: Susan Coomer Galbreath, Ph.D., CPA Charles W. Caldwell, D.B.A., CMA Jon.
PwC David Devlin 23 April 2002 Auditor Independence in a Global Market Place.
Copyright © 2010 South-Western/Cengage Learning
CHAPTER 16 Auditing and corporate governance. Contents  Corporate governance  Independent directors  Chairman of the board and chief executive officer.
Fraud and SOX Compliance McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
Sarbanes Oxley Act. WHY? Public Company Accounting Reform and Investor Protection Act of 2002 Response to a number of major corporate and accounting scandals.
Chapter 29 Ethics in Accounting
Chapter 7 Control and AIS Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 7-1.
© 2004 Ceridian Corporation. All rights reserved. Corporate Integrity and The Sarbanes-Oxley Act Victoria Nemerson Vice President Compliance, Ceridian.
Sarbanes-Oxley Act a.k.a. “SOX”
© 2013 Cengage Learning. All Rights Reserved. 1 Part Four: Implementing Business Ethics in a Global Economy Chapter 8: Developing an Effective Ethics Program.
Ethical Issues in Business
BA 427 – Assurance and Attestation Services Lecture 29 Auditor Independence – Current standards.
CORPORATE COMPLIANCE OVERVIEW David Meisels OSB Corporate Counsel Roundtable April 26, 2012.
The Integrity of Financial Reporting
The Institutionalization of Business Ethics
Copyright © 2008 McGraw-Hill Ryerson Ltd.1 Chapter Twelve Corporate Governance Canadian Business and Society: Ethics & Responsibilities.
Corporate culture A blend of ideas, customs, traditional practices, organizational values and shared meanings that help define normal behavior for everyone.
CORPORATE COMPLIANCE Tim Timmons Vice President Compliance and Regulatory Services Health Future, LLC.
Home. Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.Glencoe Accounting The accounting profession requires its members to follow a.
2 Breakout Session # Presented by Dr. Tomi Bryan, President & General Counsel FedLinx, Inc. Date April 15, 2008 Time3:20p.m. – 4:20 p.m. A Blueprint for.
Developing an Effective Ethics Program
Implementation Issues of Sarbanes-Oxley CASE Presentation September 23, 2004 By Denise Farnan.
Intro to Business CHAPTER TWO The New Ethical Environment.
Summary of the Investor Protection, Auditor Reform, and Transparency Act of 2002 (Sarbanes-Oxley Act)
By: 1. Kenneth A. Kim John R. Nofsinger And 2. A. C. Fernando.
Sarbanes Oxley Act. The Sarbanes Oxley Act consists of 11 Sections I – Public Company Accounting Oversight Board II – Auditor independence III – Corporate.
By: 1. Kenneth A. Kim John R. Nofsinger And 2. A. C. Fernando.
Corporate Culture: One way to curb unethical behavior.
Corporate Culture: One way to curb unethical behavior.
Roadmap For An Effective Compliance And Ethics Program The Top Ten Things the Board Must Know [Name of Presenter] [Title] [Date]
© 2010 The McGraw-Hill Companies, Inc. Managerial Accounting and the Business Environment Chapter 1.
1 Sarbanes-Oxley Overview. 2 Sarbanes-Oxley Act Summary The Sarbanes-Oxley Act of 2002 §201Prohibited Non-Audit Services §202Audit Committee Pre-Approval.
Corporate Ethics Programs What are they? A systematic approach to raise employees’ ethical awareness –By education –By providing resources to identify.
Chapter 2 Corporate Governance and Audits Copyright © 2010 South-Western/Cengage Learning Auditing A Business Risk Approach 7e Rittenberg Johnstone Gramling.
Building on Our Core Values Building on Our Core Values The Sarbanes-Oxley Act Public Law (JFZ edited)
Strategic Approaches to Improving Ethical Behavior
Federal Sentencing Guidelines for Organizations: Ethics and Compliance Mandates.
Corporate Culture: One way to curb unethical behavior.
The New SEC Auditor Independence Rules: Implications for Audit Committees and Management
WorldCom This fraud occurred in a major public company and went undetected for 3-4 years. How could this occur? Why did this occur? Was Betty Vinson a.
Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin 2-1 Chapter Two The Financial Statement Auditing Environment.
By Abdur Rashid Mirza University of Lahore School of Accountancy and Finance.
PowerPoint Authors: Susan Coomer Galbreath, Ph.D., CPA Charles W. Caldwell, D.B.A., CMA Jon A. Booker, Ph.D., CPA, CIA Cynthia J. Rooney, Ph.D., CPA Copyright.
William Kolasky September 26, 2007 IMPLEMENTING AN EFFECTIVE ANTITRUST COMPLIANCE PROGRAM.
Sarbanes-Oxley Act a.k.a. “SOX” Georgia CTAE Resource Network Curriculum Office, February 2009 To accompany curriculum for the Georgia Peach State Career.
Developing an Effective Ethics Program
McGraw-Hill/Irwin Strategic Management, 10/e Copyright © 2007 The McGraw-Hill Companies, Inc. All rights reserved. Corporate Social Responsibility and.
Sarbanes Oxley Act. General Provisions of SOX To make rules governing audits of public companies To make rules governing audits of public companies To.
BusinessAllstars.com 1 Sarbanes-Oxley Act of 2002 BusinessAllstarsPresents Copyright © 2004 by Gainbridge Associates All right reserved This material may.
Building on Our Core Values Building on Our Core Values © 2003 by the AICPA The Sarbanes-Oxley Act.
Copyright © Houghton Mifflin Company. All rights reserved.8-1 Chapter 8 Developing an Effective Ethics Program.
Lecture 5 Control and AIS Copyright © 2012 Pearson Education 7-1.
Chapter 2 Corporate Governance and Audits Copyright © 2010 South-Western/Cengage Learning.
Business & Society ETLW 302
Summary of the Investor Protection, Auditor Reform, and Transparency Act of 2002 (Sarbanes-Oxley Act)
Developing an Effective Ethics Program
Corporate Social Responsibility and Business Ethics
The Sarbanes-Oxley Act
Corporate Social Responsibility and Business Ethics
Corporate Social Responsibility and Business Ethics
Chapter 8 Developing an Effective Ethics Program
Corporate Social Responsibility and Business Ethics
Presentation transcript:

SCHOOL OF BUSINESS ADMINISTRATION Business & Society ETLW 302D Tara Ceranic Salinas, PhD

SCHOOL OF BUSINESS ADMINISTRATION Codes of Ethics

SCHOOL OF BUSINESS ADMINISTRATION Foundation of a strong culture? Ethical leaders! “In thought, word and deed, a company’s leaders must clearly and unambiguously both advocate and model ethical behavior.” -CEO, Merck What are the traits of an ethical leader? Difference between good and ethical

SCHOOL OF BUSINESS ADMINISTRATION

We can’t assume everyone will be ethical all of the the time so… sometimes you have to regulate.

SCHOOL OF BUSINESS ADMINISTRATION

Sarbanes-Oxley Act 2002 A Public Company Accounting Oversight Board is established. The firms are not permitted to offer loans to its executive officers or board of directors. SEC rules will create guidelines for internal controls and financial reporting procedures. ERISA penalties are increased from $5,000 to $100,000 and one year in prison to $100,000 to $500,000 and up to 10 years in prison.

SCHOOL OF BUSINESS ADMINISTRATION Sarbanes-Oxley Act 2002 The firm’s audit committee is entrusted with auditor oversight and with all independent directors on the committee Certain nonaudit services by auditors to clients are banned, nonaudit services must be preapproved by the audit committee, the lead auditor must be rotated every five years, and auditors report to the audit committee. The CEO and CFO must sign off on financial statements as accurate and fair and must repay bonuses if a restatement of financials is undertaken.

SCHOOL OF BUSINESS ADMINISTRATION U.S Corporate Sentencing Guidelines: Directives Establish standards and procedures to reduce criminal conduct Assign high-level officer(s) responsibility for compliance Not assign discretionary authority to “risky” individuals Enforce standards and procedures through disciplinary mechanisms Following direction of offense, respond appropriately and prevent reoccurrence

SCHOOL OF BUSINESS ADMINISTRATION U.S Corporate Sentencing Guidelines Effectively communicate standards and procedures through training Take reasonable steps to ensure compliance-monitor and audit systems, maintain and publicize reporting systems

SCHOOL OF BUSINESS ADMINISTRATION Codes of ethics exist in each of your chosen fields: -Accounting (AICPA, IFAC, Code of Ethics for Professional Accountants) -Finance (FPA, NAPFA) -Marketing (AMA, BMA) -Information Technology (Association of IT Professionals)

SCHOOL OF BUSINESS ADMINISTRATION You can’t find an ethics code for your organization… Compliance Conduct Governance Mission Vision Values Practices

SCHOOL OF BUSINESS ADMINISTRATION Ethics Codes/Policies in Organizations The code is about corporate culture -What lines can’t be crossed? Get input -From ALL levels Don’t be too specific or too vague

SCHOOL OF BUSINESS ADMINISTRATION Ethics Codes/Policies in Organizations Watch out for pitfalls (things not being addressed) -Nepotism, harassment, discrimination Ask experts (HR, ethicist, lawyer) Put someone in charge -Who applies and updates?

SCHOOL OF BUSINESS ADMINISTRATION What do some actual codes look like? Break into groups Find the code for any organization you are NOT doing your project on What do you think?

SCHOOL OF BUSINESS ADMINISTRATION Other ways to implement ethics in the organization Ethics committees Ethics officers/ombudspersons Hot lines Ethics audits Corporate ethics awards

SCHOOL OF BUSINESS ADMINISTRATION Ethics Training Videos Dupont Canine Conduct

SCHOOL OF BUSINESS ADMINISTRATION Writing your Ethics Analysis paper

SCHOOL OF BUSINESS ADMINISTRATION Next Class Stakeholders