Sarbanes Oxley

What are the impacts of the Sarbanes-Oxley Act of 2002 and corporate governance forces ... 

What Are the Impacts of the Sarbanes-Oxley Act of2002 and Corporate... 

Governance Forces The Public Company Accounting Reform and Investor Protection Act of 2002 (also known as the Sarbanes-Oxley Act, Public Law 107-204) was passed after the well-publicized corporate governance failures starting in 2001.The intent of the act was to strengthen corporate governance and financial disclosure rules under the Security and Exchange Commission s (SEC) rules for publicly traded companies. 

The practical effects of the Sarbanes-Oxley Act on companies are as follows (Wagner and Cannon, 2003) ... 

F. Wagner and H. Cannon, Distilling the Sarbanes-Oxley Act for EHS Auditors, Presentation made to The Auditing Roundtable 2003 Fall Meeting, Baltimore, MD, September 3-5, 2003. 

Effective communication can be the linchpin of corporate reputations negative impacts can be dramatic when stakeholders are not given the information or ability to make an informed choice. Transparency has become a critical business issue. The Sarbanes-Oxley Act is the legislative incarnation of the spotlight that investors, consumers, and employees now shine on the financial statements of a company.19... 

The SEC adopted the Sarbanes-Oxley Act in 2002, requiring CEOs and CFOs to certify the accuracy of their public reporting and to file federal forms in a timely manner so as to improve the accuracy of information that is available to investors. 

This concept of having value at stake on social and environmental issues is broad and more powerful than the more traditional view that the main financial import of environmental issues is as potential liabilities. There have been significant efforts made to improve corporate disclosure of material environmental liabilities,25 and the increased emphasis on the identification and disclosure of risks under the Sarbanes-Oxley Act should drive this further. Value at stake includes these potential environmental liabilities as well as the opportunities and competitive advantage that can come from the right environmental strategies. 

The ZIO Standard places significant emphasis on accountability by senior management. There is some correlation with the requirements of Sarbanes Oxley Act of 2002 Public Law 107-204. It is important to ensure that safety audits are independent and that the results are reported and acted upon. Those safety practitioners who author/sign those audit reports and who fail to follow up on the recommended actions may be subject to sanctions such as listed under the new law. The point has been made that they now have a duty that goes beyond just informing management. 

Final rule establishes procedures for handling whistleblower complaints under the Corporate and Criminal Fraud Accountability Act of 2002, also known as the Sarbanes-Oxley Act. 

In considering the risks primarily in the supply chain. Rice and Caniato (2003) and Zsidisin et al. (2000, 2004) suggested that a supply chain risk assessment prograimne motivates a firm to develop contingency plans, which thus can also be used to meet certain legal requirements such as the Sarbanes-Oxley Act of 2002 and KonTraG. 

Based on its universal application, ERM opens up new possibilities to strive toward optimizing internal control systems, risk management systems and thus the entire corporate governance systems (Eichler and Bungartz 2004, pp. 108 and 112-113). Its importance is further exemplified by the Saibanes-Oxley Act of 2002 (SOX), where COSO s framework may become an important tool for implementing the directives set forth in the Sarbanes-Oxley Act of 2002 (Hermanson 2003, p. 3). 

Tone at the top," the byword of compliance with the Sarbanes-Oxley Act, is an essential element in the creation of organizations with incident-free operations. (By incidents we mean increases in... 

American Enterprise Institute, Liability Project, available at http //www.aei.org/ research/projectID.23/project.asp (quote). See Henry N. Butler Larry E. Ribstein, The Sarbanes-Oxley Debacle (2006) Charles Fried David Rosenberg, Making Tort Law (2003) Michael S. Greve, Harm-Less Lawsuits (2005). 

Apply centrahzed governance of the framework—a good idea for a program like Sarbanes Oxley (SOX) that has to be managed at the corporate level. 

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