After All the Public Uproar over Enron and Then the Passages of the Sarbanese-Oxley to Protect the Shareholders, Why Do Think We Still Continue to See These Types of Situations? Is It Unreasonable to Expect That Business Can and Should Act Ethically?

We continue to see this type of situation because it depends from personal characteristic and values of people.   Also contributes to this, not enough severe punishment for such crime.   After the Enron and WorldCom financial scandals, in 2002 the Supreme Court created the Sarbanes-Oxley Act designed to protect shareholders and the public from fraudulent practices and accounting errors. "It is one of the most significant changes to the federal securities laws in history” (Forbes, 2005).   Despite existing laws, this kind of organizational fraud is still relevant. Bankruptcy fraud, known as white-collar crime, depends on the personal characteristics of the person committing the crime, as well as their values and ethics. Money has tremendous power and not everyone can resist the temptation, the lack of severe punishment for this type of crime also contributing to the acceptable crime in the point of view of the person committing the fraud. According to Cornell University research on bankruptcy fraud, “Bankruptcy fraud carries a sentence of up to five years in prison or a fine of up to $250,000 or both."(Cornell, n.d.).   The punishment for this type of crime is not significant in comparison to the profits that the criminal obtains; acceptable collateral damage in the view of the criminal. Stricter laws and punishment will help prevent this type of crime substantially.
      Businesses should act ethically and be responsible to their shareholders, their operations influence communities, governments and the economics.   Companies effect not only companies’ stakeholders but also the economy of the country as a whole. Bankruptcy of the big companies creates a chain reaction, increases unemployment, decreases the social level of the population, and can create an economic crisis.

References How to Evaluate the Social & Ethical Impact of Business on Society As a Whole

Cornell University, n.d. Retrieved from...