For the purpose of this post, “Introduction to Ethical Studies” by Lee Archie and John G. Archie and The Sarbanes-Oxley Act of 2002 were reviewed. The former discusses the core ideas of the Wester ethics, stating whether it is relative, the questions of free will, and objectivity in ethical and moral judgments. The latter is a mandatory compliance code regulating financial practice and corporate governance. These readings summarize the scope of approaches to corporate ethics, specifically highlighting whether those to be advised or enforced.
The Metropolitan Museum of Modern Art can be used as an organizational example for the paper. Its corporate statement reflects on the museum’s tight relationship with the business community. The sponsorship from various financial institutions has allowed the Metropolitan Museum to provide access to the artistic masterpieces continuously. Additionally, the museum relies on financial support from grants and other sponsors. Therefore strict policies are in place to prevent the violation of this sponsorship by the employees and the managerial team of the museum. In compliance with the Sarbanes-Oxley Act, the museum publishes financial statements to prevent misinformation and ensure transparent reporting.
Depending on the specifics of the compliance code, it may be more or less reliant on the assumption of the honourable behavior of the individual. The mandatory codes can be enforced through legislation and appropriate procedures. Therefore, it is in the best interest of everyone employed in the organization to uphold the rules of mandatory codes. However, the voluntary guidelines on ethics require the presence of responsible people acting in the common best interest. Therefore additional motivation practices might be necessary to get the organizations to comply with voluntary guidelines.