Act/561 Sox Act

In: Business and Management

Submitted By r4rbuttercup00
Words 976
Pages 4
The Sarbanes-Oxley Act of 2002
Brandice Vasquez,
University of Phoenix
July 22, 2012
Linda Moore

As businesses progress throughout the years, so must laws and regulations to ensure legal business practices remain ethical. Unfortunately, rules and regulations must be made because regrettable actions from large corporations are tainted with greed and power.
Corporate Governance Within the past few years headlines have told distressing stories of unethical practices from large corporations such as Merrill Lynch, Enron, Martha Stewart, Adelphia, Boeing, Rite Aid, Xerox, and many more (Arjoon, 2013). According to Arjoon (2013), the definition of corporate governance, “is the system by which business corporations are directed and controlled. The corporate governance structure specifies the distribution of rights and responsibilities among different participants in the corporation, such as, the board, managers, shareholders and other stakeholders and spells out the rules and procedures for making decisions in corporate affairs. By doing this, it also provides the structure through which the company objectives are set and the means of attaining those objectives and monitoring performance.” The object of corporate governance is to ensure that a corporation is held to strict guidelines that promotes fairness, transparency and accountability, and that any action taking by a manager is of the interest of the major stakeholder groups. The key component to corporate governance is to maintain strong relationships and trust from within and outside the corporation. Because of the scandals that have taken place, many companies have facilitated systems that will safeguard sleazy business practices and corruption. Many companies like KPMG Forensic have developed a strategy document for prevention, detection, and response. Within…...

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