OMM 640 Regulator Measures Powerpoint

16 Oct No Comments

Regulatory MeasuresOMM 640 Business Ethics and Social Responsibility for ManagersInstructor Andree Swanson

Regulator Measures

Regulatory measures in business are instituted to make sure that ethical and legal practices are being utilized for organizations and their corresponding shareholders. Regardless, if they are governed by federal agencies these measures have been established to promote ethical practice between businesses and consumers, into order to provide fundamental regulations that will manage violators and reward those who obey federal rules and regulations.

The Sarbanes-Oxley Act (SOX)

● “The Sarbanes-Oxley Act, which was signed into law in 2002, by President Bush in order to reform corporate responsibility and enforce stronger penalties for violators (Parles, O’Sullizan & Shannon, 2007).” ● The Sarbanes-Oxley Act was used in the Enron Scandal in 2001, this corporation was in a conspiracy to commit securities and wire fraud.

The Sarbanes-Oxley Act of 2002

● Mislead consumers and stakeholders about the financial status of Enron. ● “Falsifying documents and reneged on agreements with other lenders, which eventually lead up to Enron filling bankruptcy and the closing of one of the largest audit and accountancy corporation in the world (Parles, O’Sullivan & Shannon, 2007).”

The Consumer Protection Bureau Act of 2011

● “The Consumer Protection Bureau Act was established was passed by congress in 2010, by President Obama signing the Dodd-Frank Wall Street Reform and Consumer Protection Act (Gilmer, 2015).” ● The main goal of the consumer bureau is to keep a close watch on consumers that are seeking financial products and services.

The Consumer Financial Protection Bureau

● “It also was established to allow financial institution to give more information, or clarity about loans, or documents that may be confusing to consumers, so they will not be taken advantage of (Gilmer, 2015).”● Payday loan businesses have been under the looking glass, when it comes to businesses taking advantage of their consumer’s unexpected emergencies, by charging them double to use their personal checking account to borrow a short term loan, along with finance charges and if they cannot pay that dept in full, they add additional finance charges; which was bought to the attention of Congress and when the Consumer Financial Protection Bureau came into place this cause some of them to compensate consumers for their unethical charges.

The Federal Sentencing Guidelines for Organizations

● “The Federal Sentencing Guidelines for Organizations, which are guidelines are the product of the United States Sentencing Commission, which was established by the Sentencing Reform Act of 1984 (Seghetti, 2007).” ● The organizational guidelines have made responsible individuals in organizations aware of potential personal liability if they fail to support and involve themselves in programs and procedures designed to prevent and deter violations of the law.

The Federal Sentencing Guidelines for Organizations

● Ethical compliance programs are a process and it shows that an organization is dedicated to practice ethical behavior.● Organizational ethics programs are designed to outline the limit of accountability and responsibility along with respect to acceptable business conduct.

In conclusion, when leaders misuse their power, government agencies are applied to assist in outlining acceptable and ethical conduct; which protects consumers and keep them safe. Businesses are asked to comply with regulatory measures, in order to avoid being penalized by law.

ReferencesGilmer, C. (2015). Consumer Financial Protection Bureau. Retrievedfrom http://eds.a.ebscohost.com.proxy-library.ashford.edu/edsGonzalez-Padron, T. (2015). Business ethics and social responsibility for managers. [Electronic version]. Retrieved from http://content.ashford.eduSeghetti, L. (2007). Federal sentencing guidelines: Background, legal analysis and policy options. Retrieved from http://www.fas.org/sgp




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