What Must Be Done to Improve Ethics in Finance and Corporate Governance?

1211 Words Aug 8th, 2012 5 Pages
U10A2- Essay
Louise Pettiford

What must be done to improve ethics in finance and corporate governance?
Corporate governance can be referred to the rules, processes, or laws by which businesses are operated, regulated and controlled. It can also refer to internal factors defined by the officers, stockholders or constitution of a corporation. After finding the meaning of Corporate governance, which can also be referred to corporate responsibility, I thought about the policies in which the company I work for have. I work for Northrop Grumman, which is one of the leaders in global security.
My company does strive to remain committed to maintaining the highest of ethical standards, embracing diversity and becoming an ideal corporate
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When you think about corporate governance and the scandals that come to mind is Enron. This turned out to be scan in which Enron lied about its profits, shady dealings and concealing debts. A lot of regulations came down from the government regarding corporate responsibility and regulations. Big businesses had a lot of freedom to do what they wanted to do. Directors, Shareholders, and Presidents of companies needed to take another look at how their businesses were being run. What needs to change and what needs to be implemented so this doesn’t happen to us?
The Securities and Exchange Commission voted on three measures that are intended to better inform and empower investors to improve corporate governance and help restore investor confidence. The Commission proposed requiring public companies receiving money from the Troubled Asset Relief Program (TARP) to provide a shareholder vote on executive pay in their proxy solicitations .The Commission also voted to propose better disclosure of executive compensation at public companies in their proxy statements, and approved a New York Stock Exchange rule change to prohibit brokers from voting proxies in corporate elections without instructions from their customers.
Congress passed the Sarbanes-Oxley Act of 2002 (SOX) in an effort to protect U.S. capital markets and millions of American shareholders. SOX promote accountability and transparency in
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