What is a Code of Ethics?

The Sarbanes-Oxley Act is a financial accountability law whereby management of public companies are responsible for financial ethics, integrity and internal controls in its external reporting.� The heart of the law is to protect investors and stakeholders from fraudulent financial reporting and misrepresentations. But what does it mean to have corporate ethics and integrity? ���

Initially it seems the word “ethics” resembles “do the right thing”.� The question is, do we really understand right and wrong?� Situational ethics suggests changing the definition for different situations.� So, is it wrong to spend $170 million on personal expenditures if you are the reason a billion dollar company became a forty billion company?�

Or maybe ethics is as a series of rules and regulations.� In that case a long comprehensive list of rules and regulations would seem to be the answer which seems to be what corporate America is embracing.� But what if a particular rule hasn’t been defined?� How do we behave?�

Some best selling authors have defined ethics as the golden rule, “do unto others what you would have them to do to you”.� But if our misrepresentations raise stock prices doesn’t everyone win, at least in the short run?

In many ways all the definitions are correct.� But I thought to myself, how can I create a simple rule I can follow to guide my behavior in those rare situations where I am tempted to stray?� So I thought…

If what I am about to say or do was disclosed in the New York Times tomorrow morning,
including my concealed motivations and resolves, would I still say or do it?

It’s not perfect, but it seems to work.� It isn’t the easy way, but in the long run it seems to lead to a good night sleep.

Hope this helps!