Regulatory Measures Essay Example | Topics and Well Written Essays - 1000 words

Regulatory Measures - Essay eventns into effect on 1st November, 1991 after USSC discovered that several organizations lacked ethics and compliance programs and failed to meet defined standards. Most organizations had substandard programs that fallen short of meeting the goals and expectations of the Sentencing Commission. The Sentencing Guidelines have greatly encouraged American businesses to raise effective ethics and compliance programs (ECEPs). The FSGO seldom applies to large companies today because virtually all their crimes are adjudicated in the courthouse. However, the Guidelines still apply in the courthouse even as Non-Prosecution Agreements (NPAs) and Deferred Prosecution Agreements (DPAs) vastly influence or supply to out of court settlement (Ferrell et al. 2008). The goal of the FSGO is to incentivize American corporations to aim high and self-police on ethics. According to the FSGOs Advisory Board, more recognition and consistent promotion of ethics and compliance programs by the enforcement of the US would importantly incentivize business organizations to invest more in self-policing efforts against integrated crime.The U.S. sexual congress passed Sarbanes-Oxley Act (SOX) in 2002 to protect the unrestricted and shareholders from fraudulent/corrupt practices and accounting errors in the enterprise. The legislation sought to improve the accuracy of corporate disclosures. The Securities and counterchange Commission administers Sarbanes-Oxley Act (De & Argosy University, 2006). Apart from improving the accuracy of corporate disclosures, SOX sets deadlines for compliance and publishes rules on the requirements. The US Congress enacted SOX in response to increased cases of high-profile financial scandals in early 2000s involving large companies such as Tyco, WorldCom, and Enron. These scandals rattle investor confidence across the country. Two US Congressmen, Paul Sarbanes and Michael Oxley, drafted the act, which primarily aimed at improving accountability and corporate governance (De &