Sarbanes-Oxley Act and Internet Regulation

Legalities-Should companies regulate the usage of personal Internet during the work day? For the Sarbanes-Oxley Act companies are required to adhere to multiple polices, that include but are not limited to, adjusting internal controls and being audited on a bi-yearly basis (depending on the size of the company).

Ethics– Should the company let the workers decide whether or not they use the Internet for personal use? For the Sarbanes-Oxley Act should they use a red flag system?

Internet in the Workplace– Abuse of the Internet during business hours is a rising issue for modern age workplaces. As the amount of time spent using the internet for leisure purposes during the workday increases, owners and management are worried that it will negatively effect the business productivity. Although studies have been done that can show an increase in productivity due to short breaks that help reattain focus. But some of the higher ups are still worried about other problems that can include sexual harassment, system crashes, and high server traffic.

The most common form of deterrent used is monitoring of computer activity. Where this falls into legal issue is the monitoring of emails, most employees would not want their boss shifting through their personal email. In the article Management And Legal Issues Regarding Electronic Surveillance Of Employees In The Workplace by David Halpern which states that employers are not allowed to intercept emails but are allowed access to them if they are opened on the business servers. This is to stop illegal activities from occurring over business servers as well as allowing information of crimes to be available for investigations.

A second government regulation in the workplace is the banning of pornography at the workplace. The reason this is banned is due to sexual harassment crimes if another worker becomes offended by said material the business can be sued for sexual harassment. So to avoid legal repercussions it is banned in most workplaces.

Sarbanes-Oxley Act-The Sarbanes-Oxley Act was created in response to the 2002 scandals. In 2002 multiple companies including Enron, WorldCom, and Tyco all collapsed because for years they had been boosting their financial statements, so they appeared better off than they actually were. The Sarbanes-Oxley Act restricted all of the publicly traded companies and how they perform their day to day operations. For example internal controls were all investigated so fraud as extraneous as the 2002 frauds would not happen again. There are many people sarbanes-oxley31who believe that the Sarbanes-Oxley Act was definitely needed at the time but it now needs to be changed or removed completely because it takes a large financial toll on all public corporations. Some of the people mentioned above have written articles or have been interviewed, these people have willingly shared their very interesting opinions, for example Richard Novak.

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