1 The first step in addressing an ethical issue is to: 2 3 Make a decision based on your initial reaction to the situation. Identify the alternatives and weigh the impact of each alternative on various stakeholders. Identify and analyze the principles elements in the situation. Recognize an ethical situation and the ethical issues involved. Ethics are the standards of conduct by which actions are judged as right or wrong, honest or dishonest, fair or not fair profitable or unprofitable expedient or not feasible all of the above The stakeholders in an ethical situation are those persons or groups who are outside the company might be harmed or who would benefit from the outcome of the ethical decision own stock in the company work for the company as employees and managers 4 The second step in dealing with an ethical dilemna is to 5 Make a decision based on your initial reaction to the situation. Identify and analyze the principle elements/stakeholders in the situation. Recognize an ethical situation and the ethical issues involved. Make a decision based on whether you think the situation will be found out. Sarbanes-Oxley was enacted to reduce the confidence that investors' have in the financial markets. decrease the penalties for fraudulent financial activites reduce unethical corporate behavior and decrease the likelihood of future corporate scandals. decrease the oversight role of boards of directors of corporations