Do Governmental CSR Policies Assist Consumers or Organizations

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Do Governmental CSR Policies Assist Consumers or Organizations Governmental CSR policies are beneficial for consumers and organizations. Consumers are protected from abuse when organizations adhere to policies set forth by the government. The government has passed laws and created regulations as a guide for organizations to follow for the protection of the environment.
According to Masahudu (2004) “several governmental CSR policies, such as the National Environmental Protection Act, Clean Air Act, Safe Drinking Water Act, Toxic Substances Control Act and the Clean Water Act assist in protecting consumers and organizations”. (p. 1). An example of a policy which assists consumers and organizations is the Clean Water Act. The …show more content…

The provision of SOX affects accountants, lawyers, and people who deal with public companies or issuers. SOX provide guidelines on business practice and behavior, aimed at improving and enhancing financial reporting (Parles, O’Sullivan, & Shannon, 2007).
SOX require public companies establish audit committees to conduct audit, and composed of only independent directors, and have one member with financial expertise. The audit committee is responsible for selecting the auditor. Furthermore, the Security Exchange Commission requires SOX to adopted rules of professional responsibility for attorneys representing public companies. The policies require attorneys to report evidence of a material violation of securities law or breach of fiduciary duty to the Chief Legal Officer, Chief Executive Officer, or the Board of Directors. Additionally, SOX requires businesses to “evaluation internal control process and adjust organizational policies to be aligned with SOX”, (Parles, O’Sullivan, & Shannon, 2007).
The SOX Act also, “protects investors by improving the accuracy and reliability of corporate disclosures made pursuant to the securities laws, and for other purposes”, (Sarbanes-Oxley Act of 2002, section I). Also, the act assist organizations identify possible “fraud, corruption, and/or scandals within the company”, (Parles,

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