Preview

Whistleblower And Sarbanes-Oxley Act Research Paper

Good Essays
Open Document
Open Document
686 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Whistleblower And Sarbanes-Oxley Act Research Paper
Whistleblowing and Sarbanes-Oxley
Daniel A. Sievers
Professor: Joe McGirt
Strayer University LEG 500
10/20/2014
Abstract
The purpose of this paper is to discuss the essential characteristics of whistleblowers and how organizations take action against them. Whistleblower is a person who exposes unethical behavior or criminal activity occurring in an organization. Companies deal with whistleblowing in many different ways, and it effects the company and the employee in significant ways. Companies must follow the rules under the Sarbanes-Oxley Act and not punish employees that properly direct complaints through the proper channels.
Key Characteristics of a Whistleblowier
Whistleblowers are employees that decide to inform unethical or unlawful …show more content…
Public companies will be well advised to pay particular attention to these new protections for corporate whistleblowers. Sarbanes-Oxley installs procedures for ensuring that whistleblowers’ complaints are appropriately directed and also creates a civil cause of action for whistleblowers who get punished (Bredeson & Prentice, 2010). The Sarbanes-Oxley Act covers Section 806 that protects an employee who provides this information to a federal regulatory, law enforcement agency, or to a person with supervisory authority over the employee (Bredeson & Prentice, 2010). Section 806 protects an employee that provides information of fraud without retaliation or discrimination from employers. Whistleblowers can recover lost wages and benefits, reinstatement and special damages (Bredeson & Prentice, 2010). Employees have many rights under these whistleblower laws and should report violations without worrying about employer abusing their powers against them. The whistleblower 's complainants also have the option to be removed once the complaint has been pending at the Department of Labor for 180 days. Employees have many protections under the Sarbanes-Oxley Act and should report unethical and illegal behavior to help the United States get rid of these corrupt business
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Good Essays

    Class Make up Case Brie1
    • 818 Words
    • 3 Pages

    Class Make up Case Brie1

    Rule of Law: The Whistleblower Protection Act of 1989 is a United States federal law that protects federal whistleblowers who work for the government and report agency misconduct. (www.wikipedia.org/whistleblower.com). The Sarbanes-Oxley (SOX) Act calls for whistleblowing in the context of publicly traded…

    • 818 Words
    • 3 Pages
    Good Essays
    Read More
  • Good Essays

    Case Study: The Space Shuttle Challenger Explosion
    • 427 Words
    • 2 Pages

    Case Study: The Space Shuttle Challenger Explosion

    This incident Challenger present us a case study in organizational communication, ethics and culture as it promotes or discourages necessary communication and the ethics of whistle blowing.…

    • 427 Words
    • 2 Pages
    Good Essays
    Read More
  • Better Essays

    Is3350 Unit 1 Assignment 1
    • 841 Words
    • 4 Pages

    Is3350 Unit 1 Assignment 1

    The Sarbanes-Oxley Act provides some protection to whistleblowers to reduce the loss. The anti-retaliation provision was added to the Sarbanes-Oxley Act to penalize an employer for discharging, demoting, suspending, harassing, or otherwise discriminating against an employee for reporting potential violations to the SEC (Deakins, Campbell, & Ferrantella, 2014).…

    • 841 Words
    • 4 Pages
    Better Essays
    Read More
  • Best Essays

    Sarbanes Oxley Act
    • 3132 Words
    • 13 Pages

    Sarbanes Oxley Act

    Financial reporting has been dissected over and over again by legislation. The U.S. Securities and Exchange Commission (SEC) hold the key to providing protection and integrity when companies are submitting their financial statements. Although their mission is to provide order and efficiency for financial markets, insidious plans are still developed by companies which ultimately result in turmoil to the economy. To provide a safeguard to investors, the Sarbanes-Oxley Act (SOX) was passed by congress in 2002, which was constructed because of fraudulent acts of well-known companies such as Enron. Before the SOX was inaugurated, two sets of accounting rules were used as guides for CPA firms.…

    • 3132 Words
    • 13 Pages
    Best Essays
    Read More
  • Good Essays

    SNC-Lavalin Whistleblowing Case Study
    • 1698 Words
    • 7 Pages

    SNC-Lavalin Whistleblowing Case Study

    According to DeGeorge, for whistle-blowing to be considered ethical there first must be a serious harm that the whistle-blowing aims to prevent, which is greater than the harm it causes the firm and stakeholders. In this case, the corrupt activities are very serious and would have posed a greater harm going undetected than the negative media attention and charges brought against the firm. DeGeorge’s second condition states that the whistle-blower is required to first attempt to prevent…

    • 1698 Words
    • 7 Pages
    Good Essays
    Read More
  • Good Essays

    Sarbanes-Oxley Act Pros And Cons
    • 1181 Words
    • 5 Pages

    Sarbanes-Oxley Act Pros And Cons

    Section 806 makes it illegal for companies to terminate or retaliate against employees who report “any conduct the employee reasonably believes constitutes a violation of section 1341, 1343, 1344, or 1348, any rule or regulation of the Securities and Exchange Commission, or any provision of Federal law relating to fraud against shareholders” (“Sarbanes-Oxley Act”, 2002). This regulation means that not-for-profits must work to set up confidential reporting systems and effective investigation systems to protect both the whistleblowers and the very integrity of the organization (“Sarbanes-Oxley Act”, 2002). Additionally, Section 802 of Sarbanes-Oxley makes it illegal for any organization to destroy, alter, conceal, or falsify “any record, document, or tangible object with the intent to impede, obstruct, or influence the investigation or proper administration of any matter within the jurisdiction of any department or agency of the United States” (“Sarbanes-Oxley Act”, 2002). To adhere to this regulation, not-for-profits must development a statement detailing their organization’s document retention policy; the new procedures they will implement because of the policy; the implications of the new law for organization; the duties of the organization’s employees to comply with the new law; and the new ethical expectation…

    • 1181 Words
    • 5 Pages
    Good Essays
    Read More
  • Good Essays

    Primer on the Sarbanes-Oxley Act 2002
    • 766 Words
    • 4 Pages

    Primer on the Sarbanes-Oxley Act 2002

    In the beginning years of the new century a series of huge corporate frauds predominated the business sections and front pages of dominant newspapers, shaking public confidence in the integrity of corporate America. Those scandals also raise serious questions about the integrity, acuity and prudence of business leaders and accountants who structure and document business transactions, approve required financial disclosures, and, in the case of accountants, certify the accuracy of required reports (Enrione, Mazza, & Zerboni, 2006).…

    • 766 Words
    • 4 Pages
    Good Essays
    Read More
  • Better Essays

    The Sarbanes-Oxley Act
    • 2083 Words
    • 9 Pages

    The Sarbanes-Oxley Act

    Chapter 5: the Sarbanes- Oxley act of 2002 involved the public anger that started when Enron, WorldCom, and other big companies scandals. This is when there was support for white collar crime when it came to accounting standards. Under the law of federal sentencing rules to make sure that white collar criminals are being punished. (Barnes, 2012). 1. For someone to alter or get rid of documents and there intensions to obstruct or effect the crime/case. 2. The CEO (chief executive officer) and the CFO (chief financial officer) must clarify that repots have been submitted to the SEC (securities and exchange commission.) it is a crime if the CEO and CFO make a report that is false. 3 CEO and CFO must reimburse the company for any raises and if…

    • 2083 Words
    • 9 Pages
    Better Essays
    Read More
  • Satisfactory Essays

    Sarbanes Oxley Act
    • 380 Words
    • 2 Pages

    Sarbanes Oxley Act

    Sarbanes–Oxley Act of 2002 is a United States federal law that mandated a number of reforms to increase corporate responsibility, enhance financial disclosures and prevent corporate and accounting fraud (Shakespeare, 2008). The laws are a set of rules that guides the conduct in society. Legal rules and ethical decisions are similar but differ on certain points. Sarbanes Oxley was created with new standards for corporate accountability as well as new penalties for acts of wrongdoing.…

    • 380 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Satisfactory Essays

    Pros And Cons Of Whistleblowing
    • 84 Words
    • 1 Page

    Pros And Cons Of Whistleblowing

    Doing what’s right is never an easy decision one when it comes to work. However, when it comes to whistleblowing, this may be the hardest choice that someone will ever have to make in their life. Handling a whistleblower claim means dealing with the possibility that repercussions may come in the terms of unemployment, drop of income, loss of friendships, and reputation. The choice of a whistleblower can be impossible to make, in terms, of how they are going to bring to higher authorities.…

    • 84 Words
    • 1 Page
    Satisfactory Essays
    Read More
  • Powerful Essays

    Week 1 Assignment – Ac573
    • 1446 Words
    • 6 Pages

    Week 1 Assignment – Ac573

    An ethical culture should be a top priority of every business, large or small. The challenge for many organizations is trying to understand what it takes to build one. From an enforceable code of conduct, to ongoing training and communications, to an anonymous reporting hotline, companies can quickly implement ethics and compliance programs and solutions that foster an ethical culture across the enterprise.…

    • 1446 Words
    • 6 Pages
    Powerful Essays
    Read More
  • Good Essays

    Whistleblower Violation Paper
    • 961 Words
    • 4 Pages

    Whistleblower Violation Paper

    Whistleblower protection. This organization has voluntarily adopted a whistleblower protection policy. If any employee of this organization is aware of any violation of law or regulation, which would include financial wrongdoing, it should be immediately reported to the President or Chief Operating Officer , in which an investigation will be pursued. The employee who reports any wrongdoing will not face retaliation if the complaint is filed in good faith. Appropriate disciplinary action will be used if the person is found to be guilty. The identity of the employee who filed the complaint will be…

    • 961 Words
    • 4 Pages
    Good Essays
    Read More
  • Good Essays

    York Bloomingdale Insane Asylum Analysis
    • 1797 Words
    • 8 Pages

    York Bloomingdale Insane Asylum Analysis

    When faced with a difficult situation of morals, choice, and possible destruction of a person’s protection and survival, individuals find themselves in a formidable situation. This is a common occurrence for people who become known as a whistleblower. There is a problem in the United States with protection of individuals for whistleblowing in the workplace, and not enough is being done for these individuals. Whistleblowing is increasing and has become more common, more frequent, and sometimes dangerous. Individuals could potentially face the inability of obtaining another job because they are stigmatized as a whistleblower. This paper will focus on two questions: How does the society’s view support whether someone will blow the…

    • 1797 Words
    • 8 Pages
    Good Essays
    Read More
  • Good Essays

    Employment at Will
    • 969 Words
    • 4 Pages

    Employment at Will

    Whistle-blowing is an example of a public policy exception to the employment-at-will doctrine. The term refers to an instance of reporting by an employee of an employer’s violation of the law or wrongdoing. A majority of states have established laws that offer some form of protection for whistle-blowers. One congressional act, the Whistleblowers Protection Act, and one statute, the Federal Whistleblower Statute, have also expanded protection for…

    • 969 Words
    • 4 Pages
    Good Essays
    Read More
  • Good Essays

    Ethics and Social Responsibility
    • 1519 Words
    • 7 Pages

    Ethics and Social Responsibility

    It is balanced? Am I acting fairly? Would I want to be treated this way?…

    • 1519 Words
    • 7 Pages
    Good Essays
    Read More