Question: The U.S. Securities and Exchange Commission (SEC) released its final rule to implement a code of ethics under SOX Title 404. The stock exchanges have

The U.S. Securities and Exchange Commission (SEC) released its final rule to implement a code of ethics under SOX Title 404. The stock exchanges have proposed that each company listed on the exchanges publish its code of ethics.

  • Discuss whether these additional disclosures will both have a positive effect on public confidence and influence investors’ behavior. Support your position.
  • Evaluate the effect that a company's code of conduct can have on promoting positive employee behavior, improved decision making, or the willingness to report unethical behavior of coworkers.
  • Recommend at least two ethical policies that might encourage employees to report unethical behavior.

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