Ethical Corporate Cultures
Ethical corporate culture is the consistent answer to how accounting firms deal with the complexities of the Sarbanes-Oxley Act of 2002. Many accountants agree that good corporate governance is the right thing to do - with or without the Act in force.
The Sarbanes-Oxley Act was passed in 2002 in the wake of corporate accounting scandals at companies such as Enron, Tyco International, and WorldCom. Establishing a public oversight board and independent auditors was only one part of the requirements established by the Act. Additionally, corporate responsibility and financial disclosure were included in what has been viewed as one of the most significant changes to United States securities laws since those laws were enacted.
Some accountants and businessmen believe that the Act should not be considered a threat, but rather an extension of a system of standards and principles already in place. Those who are out there reinforcing the notion that good businesspeople and good public accountants are the ones who operate with integrity, sound governance and ethical responsibility are making a difference.
Just as laws and regulations do not stop bad people from doing bad things, regulations do not necessarily stop companies from doing bad things. When top officers implement the highest ethical standards in their organizations, the rest will trickle down.
Companies who comply with the Act show solid management and reduced risk of surprise to lenders and business partners. It’s a transparent voice of accountability in accounting. Corporate culture is the vehicle to make that clear.
