Corporate Compliance Issues

Many companies are now popping up like mushrooms everywhere and this can be partly attributed to the globalization all around the world. This phenomenon has surely had its good effects on the population, but they have also been a source of some issues in the company. These issues have become increasingly rampant causing the government to take the necessary steps.

Though companies that open can surely help the economy, they should not be left alone to do as they please. There are different laws like federal laws, state laws, agency laws and industry standards that companies have to follow.

Issues raised by different organizations are addressed in many of these laws. These laws are generally called compliance laws. They are the laws that protects the people, environment and everyone concern from the bullying of the big companies from issues raised. These issues include sexual harassment within the working area, environmental concerns, financial statement issues, fair hiring practices and ethics.

Hearing sexual harassment in the news is already fairly common. Many female employees have raised these issues and complained that they have been sexually harassed by co-employees or their bosses in the office. In the Civil Rights Act of 1964, it is stated that the definition of sexual harassment is: 'The unwelcomed sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature from an employer or a co-employee. Sexual harassment explicitly or implicitly affects an individual's work performance, or creates an intimidating, hostile or offensive work environment for the victim.' Sexual harassment can also be made as a promise of advancement in position in your working area as an exchange for a sexual favor. The harassment can be from a male or a female and the victim may also be not the one being given sexual advances but someone who is affected by the hostile and very offensive conduct.

Issues regarding the false financial statements of companies has shocked many people and cost the investors millions of dollars. It also cost many investors to doubt the security of the market from more of these fraud companies. Due to this, the Sarbanes-Oxley act was enacted. With this, the Public Company Accounting Oversight Board or PCAOB was established for the sole reason of overseeing, inspecting, regulating and disciplining the accounting firms and their function as auditors of public companies. Punishment for fraud companies were also addressed in this act.

Many companies that produce products also produce waste that can harm the environment and cause harm to the people. Companies can easily pollute the environment, but thankfully, the Environment Protection Agency (EPA) was established. This agency employs scientists, engineers, and environmentalist to work together and make efforts to address environmental hazards posed by negligent companies. The agency develops and implements rules foe companies to comply to prevent accidents like Cuyahoga River fire. This is also to promote cleaner water, air and fire.

Indeed, countries have made the necessary steps to help and protect the people from harms that the companies may pose to the environment and people in general. Punishments are also imposed to the companies that cannot comply to the laws enacted.


------

Lam Seina is an Author living in Sydney, Australia. He is interested in reading and creating websites. His latest website is about Ellie belly sling and finding the best Ellie belly slings on the web today.