ETHICS IN INVESTING

Over the past few years ethics in corporate America has received a black eye. Corporate scandals have ranged from fraud, to false reporting, insider trading, late trading, and other forms of malfeasance and have wrecked investor trust and public confidence. The current scandals have led to the Sarbanes-Oxley Act, but reforms are almost certain to continue. Sarbanes-Oxley failed to address issues within the funds industry and cannot address the real problem: ethical bankruptcy. If the government requires business to make the necessary reforms and business re-dedicates itself to high ethical standards, all stakeholders will benefit and corporate stability will return.