Global Economic Meltdown Of 2008

1477 WordsDec 28, 20156 Pages
To establish effective policies in order to enhance ethics in corporate America and prevent significant catastrophes such as the global economic meltdown of 2008 we need to propose new ethical policies and standards in our corporate system. Ethical issues must be on the strategic agenda! Integrity management should be a priority not only because it is legally required, but because it is the right thing to do. This memorandum will analyze the proposed ethical policies such as strengthening auditors’ independence and strengthening audit committee to make reforms in existing corporate sector. Strengthening business ethics by improving audit quality One of the most important factors that plays a huge role in the success of a company – is ethics, which can have long-term impact on the company. It does not matter how high the company’s profitability level is, if there is unethical behavior or a lack of corporate social responsibility it will eventually damage company’s reputation and make it less appealing to stakeholders. The last global economic crisis that cost the world trillions of dollars, a continued recession, millions of lost jobs, a huge loss of confidence in financial markets and a reversal in our efforts to cure global poverty was result of the combination of several leading factors; and the failure of business ethics was one of these factors that strongly contributed to this global financial turmoil. It is proven that during economic recession many companies
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