Philosophy 2074F/G Chapter Notes -Moral Hazard, Coase Theorem, Sarbanes–Oxley Act
1 May 2013
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The resulting public outright reflects a deep sense of injustice at the possibility that top executives could inflict such great losses on investors and employees without suffering greater personal consequences. Sarbanes oxley act that addresses individual responsibility, in signing this legislation. George w bush claimed that ti ushers in a new ethical of personal responsibility in business communities. The sarbanes oxley act contains four provisions that bear on individual responsibility. Section 302, the certification provision, requires that the ceo and cfo of companies subject to securities and exchange commission. Specifically the signing officer is required to certify that he or she has reviewed the report. S 404, which requires management to assume responsibility for establishing and maintaining an adequate system of internal control and assessing the effectiveness of this system annually. White collar crime penalty enhancement act of 2002 significantly increases the fines and sentences of a number of offences including fraud and conspiracy.
