Managing employee relations. Management Assignment.

Managing Employee Relations
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Managing Employee Relations
The Sarbanes-Oxley Act (SOX) refers to a federal law that was established in 2002 to regulate the financial practices of public and private organizations. Lawmakers introduced SOX to protect the public, employees, and shareholders from fraudulent economic activities and accounting errors. In addition, it improved the reliability of companies’ financial reporting and restored the investor’s confidence. Although some provisions of SOX apply to all firms, the law was primarily formed to regulate financial reporting in publicly traded companies. For organizations to comply with the regulation, SOX introduced penalties for those firms that will not adhere to it.
Some of the biggest American corporation scandals that led to the establishment of the SOX are the Enron Corporation and WorldCom accounting malpractices. Executive leaders of these companies stole money and manipulated financial statements to portray that the organization was performing well, which was not the reality. As such, investors had confidence that these firms are performing well only to realize that recordkeeping was manipulated when these companies were filing for bankruptcy. President George Bush signed the bill into law to eliminate such fraudulence that led to the collapse of some largest organizations in the United States of America (USA). The SOX has eleven sections. Some of them include 302, 401, 404, 409, and 802. For example, part 302 involves the financial reporting of corporate responsibility. Indeed, it says that chief financial and chief executive officers should review financial reports of an organization. The failure to perform their duties well can lead them to jail, particularly arising from bookkeeping irregularities. Section 401 focuses on with disclosures in the periodic reports, and part 404 entails internal controls management (Bhabra & Hossain, 2017). Consequently, the SOX was established to prevent fraudulent financial practices and accounting errors.
The Railway Labor Act (RLA, 1926) was established after several attempts by the federal government to come up with a law that would help to solve disputes in railway transportation. Indeed, it is the most vital labor legislation that regulates and fosters collective bargaining. Notably, collective bargaining involves negotiations between workers and employers, which is aimed at regulating working conditions, salaries, compensation, rights, and safety in the workplace. The introduction of the RLA addressed the primary transportation issues in the USA. For instance, it minimized labor unrest that crippled the economy of the country since railroads were the main modes of cargo transportation.
Although the act has been amended several times, it remains one of the best federal legislation for collective bargaining and has five primary functions. First, it prevents rail service interruptions caused by labor unrest of railway employees. Second, it allows workers to join unions of their choice so that their rights would be protected. Third, the RLA provides the ind...