Examines how company boards of directors have changed their perspectives and management systems after the Sarbanes-Oxley Act of 2002.
Written in 2006; 2,224 words; 5 sources; MLA; $ 69.95
Paper Summary:
Today's boards of directors are driven by far-reaching regulatory reforms and increased corporate expectations, as a result of the Sarbanes-Oxley legislation. Consequently, many feel an ever-growing need for orientation, education and evaluation. This paper shows that corporate directors are currently trying to gain the hands-on knowledge required to become more valuable professionals in the boardroom, with the help of general counsels, financial executives, HR representatives or corporate secretaries. The paper shows that ethics is a very important part of their change, since enforcing business morality is the main objective behind the Sarbanes-Oxley act.
From the Paper:
"It would have been difficult for the SEC to implement and supervise the application of the new legislation all by itself. Usually, when a law doesn't make sense and is inappropriate for the current economic or social environment, it is simply rejected by the people who should apply it. The proof that the Sarbanes Oxley act is an example of a good piece of legislation is the fact that, since the act has passed through congress, other organizations have decided to join this movement in order to increase the accountability for board members and make sure that their skills and experiences match the tasks for which they are held responsible."
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