...Coca-Cola Case Study: An Ethics Incident Dr. Wilhelmina Ford Dr. Robert Stephens Dr. Linda Cooper Macon State College Archive of Marketing Education August, 2007 Coca-Cola Case Study: An Ethics Incident Introduction The Sarbanes-Oxley Act of 2002, sponsored by US Senator Paul Sarbanes and US Representative Michael Oxley, represents the biggest change to federal securities laws since the New Deal. (11). One of the first companies to become involved in the new act was the Coca-Cola Company which represents an internationally recognized brand product. In 2003, the Sarbanes-Oxley Act and the Coca-Cola Company came together in Georgia courtroom when former Coca-Cola employee Matthew Whitley’s lawsuits against the company went to trial. Whitley had filed for protection under the whistleblower provision of the Sarbanes-Oxley Act. Whistle-blower protection is not new, but the Sarbanes-Oxley Act of 2002 for the first time provided a system of protection for employees of publicly owned businesses. The need for such a law was evidenced by the abuses and wrongdoings at Enron and other companies. Matthew Whitley discovered such abuses and wrongdoings at the CocaCola Company and sought action, thus shedding light on misconduct at one of the world’s most well-known corporations. The History of The Coca-Cola Company The global Coca-Cola Company, founded and headquartered in Atlanta, Georgia, is known for its close ties to the city and, in particular, its philanthropic history...
Words: 5317 - Pages: 22
...Week 3 Assignment 1: Whistleblowing and Sarbanes-Oxley Shirmere N. Gardner Dr. Susan Gerber LEG 500: Law, Ethics & Corporate Governance January 25, 2015 Abstract This text will examine the key characteristics of a whistleblower, as well as the details surrounding the JPMorgan whistleblowing event. The extent to which whistleblowers are protected under the Sarbanes-Oxley Act (SOX) will also be elaborated. Key Characteristics of a Whistleblower Whistleblowers are individuals who choose to report unethical and illegal activities. Some may work for various organizations such as non-profits and government agencies. Whistleblowing empowers employees to adhere to ethical principles and speak up for things taking place that are unethical, which may affect consumers, citizens or other employees. Such information may be disclosed to company officials, government authorities, and the media. Some of the key characteristics of a whistleblower are that they are altruistically motivated, utilitarian, uninterested in altering their behavior and they allow their own attitudes and beliefs to guide them. Most whistleblowers are often well-educated and hold professional positions (Wines, 2005). JP Morgan Whistleblower According to a Reuters article a JPMorgan whistleblower was compensated $63.9 million in a mortgage fraud deal. “Keith Edwards, a Louisiana resident, had worked for JP Morgan or its predecessors from 2003 to 2008, and had been an...
Words: 778 - Pages: 4
...organization has to establish an effective fraud management program that also covers the organization response to the whistleblower in the company. It is clear that corporate have major responsibility in their response of complaints regarding accounting, internal accounting control or audit matters where they have to establish audit procedure for the receipt, retention and treatment of complaints. Moreover, the organization has to build appropriate structure of line of reporting for the internal audit to support the effective fraud management program. The report discuss in deep on the Sarbanes Oxley Act 2002 in relation with bursa listing requirement. Furthermore, the whistleblowing also become the main issues on this report. The thorough discussion about what whistleblowing is and the key characteristics to support good whistleblower hotline also is conferred. REPORT Summary and compare the requirements of section 301.4 of the Sarbanes Oxley Act 2002 and compare those requirement with those as required by Bursa Listing Requirement 2013. Sarbanes Oxley Act 2002 section 301 stated the corporate responsibility. It is following the Securities Exchange Act of 1934 (15 U.S.C. 78f) section 10A that have been amended by adding standards relating to audit committees clause that contain of 6 sub sections. Sarbanes Oxley Act 2002 section 301.4 about complaints...
Words: 6720 - Pages: 27
...Whistleblowing and SOX Stacy Sides Professor Meheux LEG 500 January 22, 2016 Whistleblowing and SOX Describe the key characteristics of a whistleblower, and briefly summarize one researched instance of whistleblowing in one publicly traded company within the last 12 months. Include details of the issue that the whistleblower reported and the effect of the whistleblower’s actions on both the whistleblower himself and the company. Merriam-Webster’s dictionary defines a whistleblower as a person who reveals something covert or informs against another. The decision to blow the whistle on work place malfeasance is not an easy one and not a decision one takes lightly. While this person does have the opportunity for financial gain, they also have an internal desire to right a wrong. They have to have the ability to preserver through personal and professional suffering. Their reputation can be damaged and they may be branded a snitch. Before making the decision to bring the misdeeds to light a whistleblower wrestles with where does their loyalty lie? It is with their employer and co-workers or with the greater good for society as a whole. After blowing the whistle they have to have the tenacity to see their decision through, which may be a lengthy and grueling process (Archambeault & Webber, 2015). David Danon worked as a tax lawyer at Vanguard for five years. In 2013 Danon accessed certain privileged and confidential Vanguard documents. When he refused to return them...
Words: 1191 - Pages: 5
...The Sarbanes-Oxley Act of 2002 The Sarbanes-Oxley Act of 2002 The Act & Impact ACC 410, Jackie Lewis, Ph.D. Abstract The Sarbanes-Oxley Act, officially named the “Public Company Accounting Reform and Investor Protection Act of 2002”, is recognized to be the most noteworthy U.S. federal disclosure and corporate governance legislation since the Securities Act of1933 (the Securities Act) and the Securities Exchange Act of 1934 (the Exchange Act). Furthermore, the provisions of the Act are momentous enough that it is considered by many to be the most significant change to the federal securities laws in the U.S. since the New Deal. The Sarbanes-Oxley Act of 2002 The Act & Impact The Sarbanes-Oxley Act of 2002 was signed into law following the wake of corporate financial scandals. Many large companies such as Enron, WorldCom, and Arthur Anderson were affected. The Act provides a solid set of government rules that are aimed to discourage and punish corporate and accounting fraud, as well as corruption. SOX is designed to carry out these tasks by imposing severe penalties for wrong doings, while protecting the interest of workers and shareholders. The stated purposed to protect investors is maintained by improving the accuracy and reliability of corporate disclosures, imposing strict rules for audits and auditors of publically traded companies, preventing insider trading and deals, requiring companies to adopt strict internal controls, and increasing the penalties...
Words: 1660 - Pages: 7
...Whistleblowing and Sarbanes-Oxley Tina-Marie Cole Law, Ethics, and Corporate Governance LEG 500 - Lecture Course Prof. Lisa M. Morris January 20, 2015 Whistleblowing and Sarbanes-Oxley Trinity Industries, or TRN (NYSE), manufactures roadway guardrails, which are a highway public safety feature. In 2005, TRN changed its rail head design saving the company two dollars per rail head but failed to notify the Federal Highway Administration which is required by a federal ruling. The newly designed rail heads that TRN has installed on U.S. roads nationally do not propel the guardrails away from crashing vehicles in head on collisions. The lower cost railheads can send the guard rail slicing through a car potentially injuring passengers unlike there predecessors design that pushed the rail away from the wreck and oncoming traffic. The new railheads known as the ET-Plus model failed five crash tests which were also undisclosed to authorities. Joshua Harman, a competitor to TRN discovered the changed design had gone unreported and sued TRN on behalf of the federal government (Davis & Polcyn, 2014). Joshua Harman stands to make one third of a potentially billion dollars in his law suit (Ivory & Kessler, 2014). As a whistleblower, Joshua Harman is saving potential lives and injuries, fighting back at corporate greed and earning a fortune in the process. A whistleblower exposes all forms of alleged misconduct on behalf of an organization which can...
Words: 1278 - Pages: 6
...Whistleblower The text describes a whistleblower as an individual who exposes any kind of information or activity that is deemed illegal, unethical, or not correct within an organization that is either private or public to management or another official (Moran, 2008). They will review how whistleblowing is protected by law and how it affects individuals. The case study seeks to look at the case of Luke Sheldon and determine what law if any, supports his position. Whistleblowing is simply the act of reporting wrong doings. Those actions or alleged wrongdoing can be classified in several ways ranging from violation of company policy/rules, law, regulation, or threat to public interest/national security, fraud, and corruption. OSHA's Whistleblower Protection Program enforces the whistleblower provisions of more than twenty whistleblower statutes protecting employees who report violations. Section 11(c) of the OSH Act prohibits employers from discriminating against their employees for exercising their rights under the OSH Act (US Department of Labor). The rights include filing an OSHA complaint, participating in an inspection or talking to an inspector, reporting an injury, and raising a safety or health complaint with the employer. The Whistleblower Protection Act (“WPA”) of 1989 was designed as a method to safeguard workers who report these major violations of the law. The Act prevents them from being discharged or otherwise retaliated against by their employers. If workers...
Words: 605 - Pages: 3
...An Analysis of Current Whistleblower Laws: Defending a More Flexible Approach to Reporting Requirements Gerard Sinzdak' INTRODUCTION Sherron Watkins is regarded as a hero for her decision to blow the whistle on the illegal activities of her employer Enron.' Had Enron survived the resulting scandal, however, the company could have fired or otherwise retaliated against Watkins with legal impunity.'^ Under Texas's whistleblower law, employees of private employers receive legal protection against retaliation only if they report wrongdoing to an external law enforcement agency. Because Watkins reported her concerns only to Enron CEO Kenneth Lay, her actions did not meet Texas's strict report recipient requirement.' The Texas whistleblower law is not unique. Most state whistleblower statutes restrict the parties to whom a whistleblower may report in order to receive protection from retaliation.^ The majority of states, for example, protect only those employees' who file reports with external govemment bodies. In Copyright © 2008 Califomia Law Review, Inc. Califomia Law Review, Inc. (CLR) is a Califomia nonprofit corporation. CLR and the authors are solely responsible for the content of their publications. t J.D., University of Califomia, Berkeley School of Law (Boalt Hall), 2008. I would like to thank Professor Gillian Lester for her guidance and assistance with this Comment. 1. Richard Lacayo & Amanda Ripley, Persons of the Year, TIME, Dec. 30, 2002, at 30. 2...
Words: 4070 - Pages: 17
...SNITCHING FOR RICHES: WHISTLEBLOWER BOUNTIES AND THE $96 MILLION CHERYL ECKARD SETTLEMENT Introduction Bounties have been employed by United States government over the history of our Nation. As differentiated from rewards, which offer payment for accomplishment of a specific act such as providing information that leads to the capture of a particular criminal, bounties are tailored to encourage the services or actions by some class of persons in pursuance of a governmental purpose. One of the earliest examples in the United States is the grant of bounty land grants during both the Revolutionary War and Civil War. For the purpose of encouraging longer military service, this bounty system would offer land to men fit for service in return for some specified number of years of military service. Although arguably not a major factor in the United State victory in both wars, this bounty system accomplished its purpose as evidenced by the United States enticing enough men into ranks of military service to further its war campaign. Today, a common use of bounties is as an incentive for a class of persons, commonly referred to as whistleblowers, with knowledge of misconduct on the part of private or public organization to report that misconduct which is in violation of the law or against the public interest. The government encourages whistleblowing through the use of bounties and anti-retaliation laws that make up a scheme for whistleblower protection. Whistleblowers face many obstacles...
Words: 5685 - Pages: 23
...The Sarbanes-Oxley Act of 2002 Presented by: Ibrahim M. Conteh; Ruby Proctor Garcia; Kathleen M. Parry; Joseph M. Schmerling; Jaime Ulloa Auditing Theory and Practice 0902 ACCT422 4021 Due: April 29, 2009 Table of Contents Page Number What is the Sarbanes-Oxley Act of 2002? 3 Why was SOX established? 4 When did SOX take effect? 5 What companies were affected and how? 6 What does SOX compliance require? 9 Conclusion 11 References 13 What is the Sarbanes-Oxley Act of 2002? The Sarbanes-Oxley Act of 2002 – its official name being “Public Company Accounting Reform and Investor Protection Act of 2002” – is recognized to be the most significant U.S. federal disclosure and corporate governance legislation since the Securities Act of 1933 (the Securities Act) and the Securities Exchange Act of 1934 (the Exchange Act), and, the provisions of the Act are significant enough that it is considered by many to be the most significant change to federal securities laws in the U.S. since the New Deal. It is best understood, however, not as a piece of legislation centered on a new concept of regulation, but as a process which mandated that many major reforms be implemented as soon as possible (in some cases, within 30 days) on the precise schedule specified by Congress. In that sense, the Enron and WorldCom debacles provided the impetus of public outrage that...
Words: 3247 - Pages: 13
...part of the American business landscape. So what is a whistle blower? According to Blacks Law Dictionary, a whistleblower is an employee who turns against their superiors to bring a[n] problem out in the open. BusinessDictionary.com states that a whistle blower is a person who discloses improper or criminal activity within an organization. Finally, under Sarbanes Oxley, “A “whistleblower” is someone, usually an employee, who reports an employer who has broken the law to an outside agency.” Under this very important act, whistleblowers are protected by federal and state laws. Employers may not retaliate against them for reporting misconduct. Whistleblowers may not be fired or otherwise mistreated, and in some instances the government may reimburse them for costs incurred as a result of reporting. Most importantly, the federally enacted statute of Dodd – Frank defines a whistle blower as, “Any individual who provides . . . information relating to a violation of the securities laws to the Commission in a manner established, by rule or regulation, by the Commission.” There are two types of whistle blowers: external and internal. An internal whistle blower is a person who reports misconduct on a fellow employee or superior within their company. One important ethical question with respect to internal whistleblowers is why and under what circumstances people will either act on the spot to stop illegal and otherwise unacceptable behavior or report it? Conversely, an external whistle...
Words: 2053 - Pages: 9
...Whistleblower Policy Nonprofit Public Benefit Corporation Made possible through the support of the Annenberg Foundation About This Form: Public Counsel’s Community Development Project has designed the attached form of Whistleblower Policy for a California Nonprofit Public Benefit Corporation to assist nonprofit organizations seeking to adopt or amend such a governance policy and the pro bono attorneys who represent them. This form is annotated with explanatory endnotes, including citations to applicable laws, alternatives and recommended practices. For further instructions on how to use this form, how to create a policy that will allow a corporation to answer “yes” to Section VI, Question 13 on the revised Form 990, and how to implement this governance policy, please see the endnotes. Public Counsel will update this form periodically for changes in law, recommended practices and available resources. For the latest version, see www.publiccounsel.org/practice_areas/community_development. Important Notes: In creating any governance policy, it is very important that a nonprofit corporation institute procedures that the corporation is likely to be able to comply with consistently in the long term. Therefore, this sample should be used only after carefully considering every provision, and a corporation should not adopt any provisions that will be too burdensome for the corporation to follow given its circumstances. A governance policy will not protect a corporation...
Words: 4784 - Pages: 20
...that of its executives. Determine whether Allen could legally fire each of the three workers; Donna, Tom, and Ayesha. Suggest steps he should take to minimize the risks to his department and the company. Determine the whistle blowing opportunities, obligations, and protections that could benefit Allen. Assess PharmaCARE’s environmental initiative against the backdrop of its anti-environmental lobbying efforts and Colberian activities. Examine if this renders the company’s purported environmental stewardship better or worse and if the company’s public stance should carry an obligation to be a leader in environmental matters. Analyze the original purposes of and the changes to Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA). Determine which provision(s) of CERCLA apply to PharmaCARE in the scenario provided Stakeholders are those individuals and groups that have an investment, share, or interest in an organization. In this scenario that includes PharmaCARE, CompCARE a subsidiary of PharmaCARE, Wellco a large drugstore chain which purchased CompCARE, PharmaCARE’s management and investors, and the African nation of Colberia. Analyze the ethics of PharmaCARE’s...
Words: 2078 - Pages: 9
...of this research paper is to show how the Sarbanes-Oxley Act of 2002 may have contributed to holding corporate executives accountable for their actions then and for the future. This research paper will examine and discuss the origin of the Sarbanes-Oxley Act and go into detail regarding the eleven titles, or sections, of the document that it consists of. This research paper will then touch upon the different countries around the world that have been subsequently enacted with the Sarbanes-Oxley Act and conclude with the debates over the perceived benefits and costs from both opponents and proponents. The following research paper will prove to be useful for any executive running a public corporation. After reading this research paper, one will come to discover and understand the new standards implemented for corporate accountability as well as the new penalties for acts of wrongdoing. Body The Sarbanes–Oxley Act of 2002, also known as the “Public Company Accounting Reform and Investor Protection Act” by the Senate and “Corporate and Auditing Accountability and Responsibility Act” by the House of Representatives and commonly called Sarbanes–Oxley, Sarbox or SOX, is a United States federal law passed on July 30, 2002, which set new or enhanced standards for all United States public company boards, management and public accounting firms. It received its name after U.S. Senator Paul Sarbanes (D-MD) and U.S. Representative Michael G. Oxley (R-OH). The bill was enacted as a reaction...
Words: 2565 - Pages: 11
...recent times I believe that the current businesses and regulatory environment is more conducive to ethical behavior due to the workplace. In the workplace ethics develops an atmosphere of respect and tolerance for everyone, by striving to conduct business in a manner that is beneficial to owners, employees and customers. It is very important to have trust and honesty between management, the employees, its co-workers, and between the business and its customers. When ethical lapses of trust becomes rampant, employee productivity declines, loyalty follows, and soon major breaches such as employee theft begin to appear (Calle, 2009). It is said that “Ethical integrity involves reporting others acting in dangerous or illegal way. The term whistleblowers are people who choose to expose wrongdoings, usually at the expense of their careers (Capozzi, 2008).” Ronald Jeurissen, author of “Ethics and Business,” says that whistle-blowing has moral considerations. For instance, the person should be sure the negative consequences to the company of such exposure do not outweigh the benefit to the public. When professional accounting ethics are breached accountants may expect to lose their job, or may even end up spending time in jail depending on the crime. As part of the largest financial fraud in U.S. history, in March 2009 David Friehling an American accountant was arrested and charged for his role in the Madoff investment scandal. For many years, Bernard L. Madoff Investment Securities LLC...
Words: 1440 - Pages: 6
