Final answer:
Organizational ethics focuses on developing sound organizational practices and integrity for financial and nonfinancial performance measures. Sarbanes-Oxley Act enforces ethical practices to enhance financial transparency and prevent fraud.
Step-by-step explanation:
Organizational ethics focuses on developing sound organizational practices and integrity for financial and nonfinancial performance measures, rather than on an individual's morals. It aims to ensure that organizations adhere to ethical standards and principles in their operations, decision-making, and interactions with stakeholders.For example, in the aftermath of accounting scandals involving corporations like Enron and WorldCom, the Sarbanes-Oxley Act was enacted to enhance financial transparency, accountability, and integrity in corporate reporting. It requires companies to establish internal controls and adhere to ethical practices to prevent fraud and misrepresentation of financial information.Compliance with ethical standards and organizational ethics is crucial for maintaining public trust, investor confidence, and the overall reputation of businesses.