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Effect of Unethical Behavior Article Analysis

Autor:   •  February 13, 2014  •  Case Study  •  381 Words (2 Pages)  •  820 Views

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Effect of Unethical Behavior Article Analysis

In our daily lives we are expose to different types of behaviors, one of the most important one is the unethical behavior. In business we see lots of these behaviors, some protected by law and other restricted to professional integrity. The United States Congress has created some legislation to provide guidance in accounting procedures.

The Sarbanes-Oxley Act of 2002 “An act passed by U.S. Congress in 2002 to protect investors from the possibility of fraudulent accounting activities by corporations. The Sarbanes-Oxley Act (SOX) mandated strict reforms to improve financial disclosures from corporations and prevent accounting fraud. A SOX was enacted in response to the accounting scandals in the early 2000s. Scandals such as Enron, Tyco, and WorldCom shook investor confidence in financial statements and required an overhaul of regulatory standards.” (

This Act is trying to control the illegal or fraudulent accounting statements from big corporations. These fraudulent statements we can see it in different levels like individuals, small and medium business. Unethical behavior of this kind can bring trust problems to clients and financial issues to the corporations.

An example of an unethical practice is to reports unreal profit that gives an unreal overview of the stability of the business to the investors. In this type of scenarios this statement will provide investors a trust atmosphere to continue investing money in a business that really has a bad management and will sooner or later be at bankrupt. We often see this type of fraudulent habits in organizations were managers don’t pay close attention to what is happening in there surroundings. Another example is not business wise but very often in individuals is the false accounting statement for tax fills, and for the purchasing of houses or cars. Individuals use this type of false


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