Social Responsibility and Regulation

Topics: Government, Internal control, Public policy Pages: 3 (762 words) Published: February 23, 2011
Social Responsibility and Regulation
The purpose of this paper is to determine how governmental Corporate Social Responsibility (CSR) policies assist consumers and organizations; to evaluate if government polices differ throughout the world; to show ways that politics shape the regulation of businesses. CSR Policies and Consumers/Organizations

Governmental CSR policies were developed to assist consumers and organizations.  For example there was a government regulation enacted to protect the financial community in 2002 called the Sarbanes-Oxley Act (SOX) of 2002. This Act was enacted in response to corporate scandals that had caused investors, consumers, and most organizations to lose their life savings and go bankrupt. Many employees lost their jobs and some companies were forced to close their doors or go through reorganization. The Sarbanes-Oxley Act was also to “protect investors by improving the accuracy and reliability of corporate disclosures made pursuant to the securities laws, and for other purposes.” (Sarbanes-Oxley Act of 2002, section I).  The Act protects both consumers and organizations in many ways. First, SOX mandates a set of internal procedures designed to ensure accurate financial disclosures. Organizational management must certify that they are responsible for establishing and maintaining internal controls and have designed such internal controls by signing off on all financials; this holds them directly responsible. SOX assist organizations to establish effective internal control systems to detect fraud and abuse.  This will strengthen the CSR role of organizations in terms of disclosing an accurate financial position of the organization.

Government Policies
It seems that government policies do not have much difference around the world. The agricultural policies of the United States and Finland are very similar. In Finland their agricultural policy has long been influenced by more than just solely economic considerations. The need to...

References: Finland Agricultural Policy (n.d.). In Wikipedia. Retrieved from
Fisch, J. (2005, October 1). How do corporations play politics?: The fedEx story. Vanderbilt Law Review. Retrieved from
Sarbanes-Oxley Act of 2002, Public Law 107-204.  Retrieved from  
U.S. Agricultural Policy (n.d.). In Wikipedia. Retrieved from
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