Corporate Compliance on a Personal Level
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This paper explores the changes in corporate compliance brought about by the enactment of The Comprehensive Environmental Response, Compensation and Liability Act and the Sarbanes-Oxley Act of 2002. The paper relates that both of these comprehensive legislative initiatives were brought about by infamous events in American Corporate history, and were aimed at preventing such corporate transgressions in the future. They brought personal liability for the actions of the corporation to its directors, officers and management.
From the Paper:"The corporate veil was a thick impenetrable barrier that protected Officers, Directors, Management and shareholders from personal liability from the acts of the corporation. The immunity granted by the legislative progenitors of these modern day immortals are now chipping away at the corporate shield, and have created large holes where the long arms of personal liability can now reach. As with all things political, seminal events brought about these fundamental changes in corporate law. The pollution scandal of Love Canal brought about The Comprehensive Environmental Response, Compensation and Liability Act (CERCLA), among other provisions brought about criminal liability to Officers and Management for willful violations (Darragh, 1997, n.p.). The corporate financial scandals associated with the "Dot Bomb" era of the late 1990's resulted in the Sarbanes-Oxley Act of 2002, establishing personal liability to the corporate officers in the reporting of financial data to the Security and Exchange Commission (SEC) (Hein, Neimeth, Rosner & Watts, 2002, n.p.). The spectacular misdeeds of a very few in the corporate world brought about increase personal liability and risk to those that run corporations in America."
Sample of Sources Used:
- Darragh, Daniel. (1997). "Arranger and Transporter Liability Under CERCLA." Find Law For Legal Professional Website. Retrieved August 14, 2007, from http://library.findlaw/1997/Jun/1/127680.html
- Guerra, Jorge E. (2004). "The Sarbanes-Oxley Act and the Evolution of Corporate Governance." The CPA Journal Website. Retrieved August 14, 2007, from http://www.nysscpa.org/cpajournal/2004/404/perspectives/nv5.htm
- Hein, Michael H., Nelmeth, Clifford E., Rosner, Ira N., Watts, Fern S. (2002). "The Sarbanes-Oxley Act of 2002 Effects Sweeping Changes to the U.S. Federal Securities Law." Greenberg Traurig Law Office Website. Retrieved August 13, 2007, from, http://www.gtlaw.com/pub/Alerts/2002/heinm_08.asp
- "Major Chemical Manufacturer Will Spend $125 Million to Reduce Pollution." (July 19, 2007). U.S. Environmental Protection Agency Newsroom. Retrieved, August 14, 2007, from http://yosemite.epa.gov/opa/admpress.nsf/e87e8bc7fd0c11f1852572a000650c05/a5ee9fc07e37ed338525731d00507a18! OpenDocument
Cite this Cause and Effect Essay:
Corporate Compliance on a Personal Level (2008, June 29) Retrieved October 14, 2019, from https://www.academon.com/cause-and-effect-essay/corporate-compliance-on-a-personal-level-105114/
"Corporate Compliance on a Personal Level" 29 June 2008. Web. 14 October. 2019. <https://www.academon.com/cause-and-effect-essay/corporate-compliance-on-a-personal-level-105114/>