Part I: Introduce yourself to your classmates with your name, location, current employment, and future goals.
Part II: Do you think that the Sarbanes-Oxley Act has been effective in eliminating corporate scandals? Why, or why not? If necessary, include companies as examples.
Here recently I read an article about a former accounting executive by the name of Catherine Zulfer who was awarded six million dollars to whistleblower in a Sarbanes-Oxley Case. It appears she was fired in retaliation for approaching her previous employer’s about her concerns about accruing discretionary executive bonuses without board approval. SOX was put into place to restore trust in the US financial markets and protect future investors. So with that being said, I believe that the Sarbanes-Oxley has been successful over the years for eliminating corporate scandals.
I believe that it is an employer’s responsibility to improve the knowledge of its workers in regards to the Sarbanes-Oxley Act because the potential for criminal charges exists for anyone considered in violation of certain portions of SOX. With that said, it is the employer’s responsibility to to implement policies and conduct training to educate and communicate SOX to employees.
While I was researching for this assignment, I came across several articles about Enron, Yahoo!, and Worldcom. After looking at those articles and reading about the various counts of accounting fraud, money laundering, investment fraud,and insider trading, knowing that the Sardanes-Oxley Act is action brings security to those who invest in a company. I believe that the Sardanes-Oxley Act has been successful in helping keep corporations honest and shareholders at ease. The act has helped corporations maintain high ethical standards today and to assist in the prevention of corporate wrong doings.
After a decade and more of serious corporate scandals the Sarbanes-Oxley Act seemed to be put in place at first as a ban-aid for corporate America and its investors, to lessen their fear of fraud and future scandals. The act helped with eestablishing a more sound financial and managing aspect to public companies; fortifying their reporting and strategic planning in todays market to bring comfort and growth to this economy. As of today those changes have created a more accurate and disciplined structure for businesses.
In working for my current employer there are big contracts and big business, in which there ccould be big risk, yet I do feel that SOX act has had a positive influence on the corporate worlds judgment, management and overall fairness since its had been in place.
After much reading and research on SOX, I would have to say that it definitely is eliminating company scandal. The fact that investors and future investors are basically protected under this act gives more confidence and security to shareholders. I’m sure everyone is familiar with the repercussions companies such as Worldcom and Enron faced to include major scandals such as the Bernie Madoff scandal.
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