The most important regulations the Government of the United States has enforced for the Institutionalization of Principles of Ethics

t of 2002 (SOX) 🏛️

Focus: Corporate accountability and financial transparency.

Impact on Ethics: SOX was enacted following major corporate accounting scandals (like Enron and WorldCom). It directly institutionalized ethical principles within corporate governance.

Section 302/404: Mandates that senior executives certify the accuracy of financial statements and that companies establish and maintain effective internal controls over financial reporting. This creates a clear legal duty for ethical financial practice.

Whistleblower Protection: SOX established robust legal protections for employees who report corporate fraud, making it easier to expose unethical practices and increasing accountability (Langevoort, 2021).

Code of Ethics: Requires public companies to disclose whether they have adopted a code of ethics for senior financial officers, formalizing the need for explicit ethical standards.

Sample Answer

Guiding the Market: US Regulations on Ethics, CSR, and National Security

The institutionalization of ethics and Corporate Social Responsibility (CSR) within the United States has been driven not by a single comprehensive law, but by a series of regulations designed to ensure market integrity, protect investors, and safeguard national interests. These regulations operate under the principle that ethical corporate conduct is essential for economic stability and national security.

Key Regulatory Frameworks for Ethics and CSR

While the US has no single federal mandate explicitly labeled "CSR," several landmark regulations enforce the underlying principles of accountability, transparency, and ethical conduct:

1. Sarbanes-Oxley Act of 2002 (SOX) 🏛️

Focus: Corporate accountability and financial transparency.

Impact on Ethics: SOX was enacted following major corporate accounting scandals (like Enron and WorldCom). It directly institutionalized ethical principles within corporate governance.