Wednesday, July 24, 2019

Regulatory Measures Essay Example | Topics and Well Written Essays - 750 words

Regulatory Measures - Essay Example This paper will examine regulatory measures as stipulated in the Federal Sentencing Guidelines for Organizations (FSGO), Sarbanes-Oxley Act (SOX), and Consumer Financial Protection Bureau (CFPB). Indeed, in 1991, the federal government through the United States Sentencing Commission enacted the Federal Sentencing Guidelines for Organizations to curb legal violations in organizations by imposing harsh penalties upon organizations whose employees or company representatives commit federal crimes (Ethics Resource Centre, 2005). Ideally, the Federal Sentencing Guidelines for Organizations would also guide the Federal Judges while convicting and punishing organizational defendants (Ethics Resource Centre, 2005). The Federal Sentencing Guidelines for Organizations came because of continued debate over the significance of instilling ethical conduct in organizations to guide the code of operations (Ferrell et al, 1998). Actually, the need for an ethical conduct emanated from the fact that org anizations continuously violated the law that governed their operations. Moreover, the ethical and legal challenges that faced the managers and employees of an organization necessitated the establishment of an ethics program and its compliance policy (Ethics Resource Centre, 2005). ... On the other hand, George W. Bush signed into law the Sarbanes-Oxley Act of 2002 (Zameeruddin, 2003). The Act proposed universal reforms on financial operators, lawyers, auditors, corporate board members, and other official that trade securities (Zameeruddin, 2003). The main aim of the Act was to prevent and punish corporate and accounting fraud and corruption as well as safeguarding the interests of the employees and shareholders. The Sarbanes-Oxley Act of 2002 came as a result increasing of complex corporate and accounting scandals in the public sector (Independent Sector, 2013). Most specifically, the collapse of Enron and reports of accounting fraud at WorldCom, HealthSouth, and other leading firms in the US led the US Congress to enact the Sarbanes-Oxley Act of 2002 (Vakkur & Herrera-Vakkur, 2012). As such, there was a need to formulate laws to curb this trend and restore public trust in the corporate world. Additionally, the Act came into effect as a way of establishing an effe ctive oversight measure to the financial and accounting operations of an organization (Independent Sector, 2013). Furthermore, the Consumer Financial Protection Bureau (CFPB) offers equal opportunities for the employer in compliance with federal law and seeks to create and maintain a vibrant and diverse workforce (Consumer Financial Protection Bureau, 2013). The Consumer Financial Protection Bureau came because of increased discrimination in the membership in a labor organization, or any other organization that does not abhors merit. As such, it encourages professional development, retention on employees, and offers compensation and benefits packages to the employees. Ideally, we can establish that the Federal Sentencing Guidelines for

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