Sarbanes-Oxley and the Responsibilities of HR
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The paper presents the premise that though the implementation of Sarbanes-Oxley largely concerns accounting procedure and leadership accountability, its practical implementation will depend heavily on the orientation of human resources (HR) departments. The paper examines the conditions requiring the passage of this corporate governance legislation, some of the parameters set forth in the act and some of the demands which have come to fall upon human resources departments by the implementation of this act. The paper concludes with recommendations based on the conclusion that the HR department will take a lead role in insuring policy compliance and saving unwanted expenditure for non-compliance.
From the Paper:"Particular elements of Sarbanes-Oxley which are of interest to us in the course of a discussion on its provocation may be found in the way that it addresses the abnormalities in corporate accounting which were epidemic in this time. Specifically, according to Section 302 of the act, there is now in place a legal requirement that "periodic statutory financial reports are to include certifications that "the report does not contain any material untrue statements or material omission or be considered misleading." (SOXLAW, s302) This aspect of the legislation implements a needed degree of accounting oversight, reflexive of one of the core shortcomings allowing for the corruption which was epidemic in the first part of this decade.
"This is notable as a direct response to the specific nature of such cases as Enron. Indeed, just as Enron had been a symbol for the perceived economic prosperity of the 90's, so too would it become emblematic of the malfeasant underbelly of America's increasingly unregulated and poorly self-governed corporations. In 2002, allegations came to the surface that the organization's core of executive leaders had misrepresented company earnings, participated in insider-trading and had essentially looted the company of its value."
Sample of Sources Used:
- BBC News. (August 2002). Enron Scandal at-a-glance. British Broadcasting Company. Online at <http://news.bbc.co.uk/2/hi/business/1780075.stm>.
- Becker, B. & Gerhart, B. (1996). The Impact of Human Resource Management on Organizational Performance: Progress and Prospect. The Academy of ManagementJournal, 39(4), 779-801.
- Combs, B. (2006). Sarbanes-Oxley Act: HR's Role in Ensuring Compliance and Driving Cultural Change. The Bureau of National Affairs.
- Gamble, J.B. (2007). A Common Goal: Partnering With HR for SOX Compliance. Risk Management. Online at http://findarticles.com/p/articles/mi_qa5332/is_11_54/ai_n29387462/?tag=rel.res1
- Grossman, R.J. (2005). Demystifying Section 404: Hazy roles and regulations are making HR's greatest Sarbanes-Oxley compliance task even more challenging. Here's how some are moving through the fog. HR Magazine. Online at http://findarticles.com/p/articles/mi_m3495/is_10_50/ai_n15875221/?tag=rel.res3
Cite this Term Paper:
Sarbanes-Oxley and the Responsibilities of HR (2011, December 27) Retrieved December 06, 2021, from https://www.academon.com/term-paper/sarbanes-oxley-and-the-responsibilities-of-hr-149648/
"Sarbanes-Oxley and the Responsibilities of HR" 27 December 2011. Web. 06 December. 2021. <https://www.academon.com/term-paper/sarbanes-oxley-and-the-responsibilities-of-hr-149648/>