Business Studies

Which of the following Act made code of ethics mandatory for all organizations?


ANSWER

The Sarbanes-Oxley Act, 2002


SOLUTION
In the United States of America, Section 406 of the Sarbanes Oxley Act, 2002 requires public companies to disclose whether they have codes of ethics, and also to disclose any waivers of those codes for certain members of senior management. Section 406(a) of the Regulation requires companies to disclose:
 — whether they have a written code of ethics that applies to their principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions;
 — any waivers of the code of ethics for these individuals; and
 — any changes to the code of ethics.
If companies do not have a code of ethics, they must explain why they have not adopted one. A company may file its codes as an exhibit in the annual report, post the codes on the company's website, or agree to provide a copy of the codes upon request and without charge. 

View Answers

You're just one step away

Create your Digital Resume For FREE on your name's sub domain "yourname.wcard.io". Register Here!


Single Correct Medium Published on 18th 08, 2020
Next Question
Questions 244531
Subjects 8
Chapters 125
Enrolled Students 199
Enroll Now For FREE

Realted Questions

Q1 Subjective Medium
State with reason, whether the following statement is True or False:
Business organizations have various types of social responsibilities.

Asked in: Business Studies - Social Responsibilities of Business and Business Ethics


1 Verified Answer | Published on 18th 08, 2020

View Answer
Q2 Single Correct Hard
For an investor the best option to put money is in a company which is _______.
  • A. doing profitable business
  • B. having highly organized people
  • C. having dependable people
  • D. all of the above

Asked in: Business Studies - Social Responsibilities of Business and Business Ethics


1 Verified Answer | Published on 18th 08, 2020

View Answer
Q3 Single Correct Medium
Which of the following is an unethical business practice?
  • A. Collusion
  • B. False Communication
  • C. Insider Trading
  • D. All the above

Asked in: Business Studies - Social Responsibilities of Business and Business Ethics


1 Verified Answer | Published on 18th 08, 2020

View Answer
Q4 Single Correct Medium
Business enterprise develop a proper image in society by ________________.
  • A. continuous interaction with government
  • B. continuous interaction with people
  • C. continuous interaction with employees
  • D. All of the Above

Asked in: Business Studies - Social Responsibilities of Business and Business Ethics


1 Verified Answer | Published on 18th 08, 2020

View Answer
Q5 Single Correct Medium
Which of the following reason is/are applicable for unethical business practices?
  • A. Well organized consumer movement
  • B. Commitment to society
  • C. Greed for quick money
  • D. Laws, rules and regulations

Asked in: Business Studies - Social Responsibilities of Business and Business Ethics


1 Verified Answer | Published on 18th 08, 2020

View Answer