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Compliance to Business Ethics

Ethics are the moral code of a business conduct. Non-compliance to ethical standards poses a great risk to the business. Various key structures have been set up to ensure businesses keep up good values.

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Ethical compliance consists of three important dimensions in terms of safety, competition, and environment. Ethical compliance in competition dictates that businesses should maintain healthy and fair competition. They should obey laws that govern competition in the industry. Safety compliance lays out the safety procedures and rules that a business should follow to maintain safety in an organization. They ensure employees and customers to operate under a healthy and safe environment. Firms are also under the obligation to conserve the environment. They have to abide by the laws set up to safeguard the environment.

Voluntary boundary, core practice, and mandated boundary show the duties of a firm in addressing ethical issues. Voluntary boundary is the activities carried out voluntarily by management of a company to maintain ethical standards. Core practice is the policies set up and implemented so as to comply with laid out procedures or general practices in an industry. The mandated boundary ensures compliance with laws and policies set up by regulatory bodies and the government.

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The Sarbanes-Oxley Act is a legislation enacted in 2002 to ensure firms comply with various standards, for instance, in auditing and management. It focuses on financial practices and corporate governance. It is a regulatory requirement and firms must comply.

Federal Sentencing Guidelines for Organizations are given to organizations that do not comply to ethical standards harsher penalties for offences than those that comply. This has ensured that firms maintain the highest possible ethics so as to benefit from leniency offered to them in sentences. It works where courts and prosecutors put emphasis on the guidelines and ensures compliance to ethical standards in firms.

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