Relation
The Sarabanes-Oxley Act (2002) also known as “SOX” is the best example of government ruling effecting this discussion. This is a law that has 11 sections, all detailing the different roles and expected actions taken by organizations, and the chairs(high authority figures) that are employed by them.
Title III: Corporate Responsibility
As a company, this corporation has a responsibility to abide by all the laws sanctioned around a business. This section provides rules of conduct for their high officials to educate the investors, employees and the community to the best of their ability. They have a responsibility to act in the best interest of others and it is completely unethical to make financial decisions to benefit one’s self, at a knowing risk to another person or people. The high officials of ImClone have a responsibility to their shareholders and cannot legally sell their shares knowing that a crash was evident in the near future.
Title XI: Corporate Fraud and Accountability
Fraud and accountability we feel is the biggest topic that could be related to our discussion. Shareholders would be entitled to the proper information that had been revealed by the high officials at ImClone. They were committing fraud when selling their shares to a company that looked like they were doing quite well, while knowing a crash was soon going to affect the shares value. Investor confidence is a portion of this law/section that is supposed to protect them against such unethical behaviours.
Title III: Corporate Responsibility
As a company, this corporation has a responsibility to abide by all the laws sanctioned around a business. This section provides rules of conduct for their high officials to educate the investors, employees and the community to the best of their ability. They have a responsibility to act in the best interest of others and it is completely unethical to make financial decisions to benefit one’s self, at a knowing risk to another person or people. The high officials of ImClone have a responsibility to their shareholders and cannot legally sell their shares knowing that a crash was evident in the near future.
Title XI: Corporate Fraud and Accountability
Fraud and accountability we feel is the biggest topic that could be related to our discussion. Shareholders would be entitled to the proper information that had been revealed by the high officials at ImClone. They were committing fraud when selling their shares to a company that looked like they were doing quite well, while knowing a crash was soon going to affect the shares value. Investor confidence is a portion of this law/section that is supposed to protect them against such unethical behaviours.