Get It Right

Voluntary practices, Core practices, and Mandated boundaries are design to keep businesses to higher ethical standards because if businesses do not comply with these practices and boundaries they can and will face serious punishments. “Voluntary practices include beliefs, value and voluntary contractual obligations of a business.” (Business Ethics, 2011, p.93) All businesses commits to these activities at certain levels to benefit their stakeholders both internal and external. “Core practices are documented best practices, often encouraged by legal and regulatory forces as well as industry trade associations.” (Business Ethics, 2011, p. 93) Core practices like these help ensure compliance with legal requirements and societal expectations. “Mandated boundaries are the externally imposed boundaries of conduct, such as laws, rules, regulations, and other requirements.” (Business Ethics, 2011, p.94) All business must respect and follow these mandated boundaries created by Antitrust and consumer protection laws.

The Sarbanes-Oxley Act was put in place to stop businesses from falsely reporting their financial status. “The Sarbanes-Oxley Act requires corporations to take greater responsibility for their decisions and to provide leadership based on ethical principles.” (Business Ethics, 2011, p. 109) To sum up the Sarbanes-Oxley Act it was established to protect internal and external stakeholders and to observe corporations from a financial stand point.

The FSGO which stands for Federal Sentencing Guidelines for Organizations was passed in 1991 by Congress. They create an incentive for organizations to develop and implement programs designed to foster ethical and legal compliance. There are seven steps to the FSGO that the government wants organizations to implement and improve on. Almost every year there are amendments added to the Federal Sentencing Guidelines for Organizations. They are always improving and making sure businesses are implementing...