5) CWUCOM312 – Worth Chapter 4

We talked in class today at length about boards, recruitment, responsibilities, orientation, and their overall role within the origination … Well, it’s so important to also consider legal responsibilities.

In Worth (Chapter 4), he discusses many key ideas but one specifically that has hit the non-profit world very hard in the last 10 years has been the Sarbanes-Oxley Act. He doesn’t go into a lot of heavy detail about it but read and summarize. Take a look online and see if you can find another article to share with the class about this critical piece to the non-profit world… share in the comments section of this article please…

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6 thoughts on “5) CWUCOM312 – Worth Chapter 4

  1. Kayse Dahl says:

    The Sarbanes-Oxley Act was passed in 2002 as a response to large scale scandals to protect against future criminal activity. The act describes protocol and the legal consequences in relation to ethical practices such as fraud and the mishandling of company funds among businesses. While only for-profit organizations are legally obligated to abide by the act, many nonprofits have adopted sections, or regulations similar to those described in the Sarbanes-Oxley Act in relation to how documents are destroyed and increased protection, such as identity protection, from retaliation of employees who participate in “whistle blowing”.

    http://www.sox-online.com/basics.html

  2. Wendy Bynum says:

    The Sarbanes-Oxley Act (2002) created new rules and policies of publicly traded for-profit corporations. This did create some stirring in the nonprofit world as well. The Sarbanes-Oxley Act stated some new rules on the destruction of documents and protection of informants. Many nonprofits have adopted some or all of the Sarbanes-Oxley Act on their own accord, and even some of the laws in the nonprofit world have been based around the Sarbanes-Oxley Act and it’s requirements of for-profit corporations.

    http://www.soxlaw.com/

  3. ANthony Felts says:

    Sarbanes-Oxley Act is a abbreviated as SOX and was created after the ever popular Enron scandal. The idea of this act is to protect people who invest in a company from being totally taken to the cleaners.Sarbanes-Oxley Act is the idea that once a criminal act has been done it keeps from that act to be repeated.Sarbanes-Oxley Act doesn’t lay down and say this is how everything needs to be done, but is more a set of guidelines to be followed when going over the procedural activities.

  4. Wade Smith says:

    http://www.inc.com/news/articles/200605/sarbox.html

    What this article discusses is the affect this act is having on organizations that weren’t expecting to be punished by its regulations and ideals. The Sarbanes-Oxley Act was designed to target fraud at larger corporations, not to impose disproportionate higher costs throughout smaller firms. For example, “Smaller firms also reported paying between $3,000 and $1.4 million in fees to external consultants, while staff accountants spent as much as 90% of their time on compliance issues.” That right there shows in its entirety the affect this act is having on small firms, which isn’t fair.

  5. Mat Phillips says:

    The SOX act was enacted on July 30, 2002 in response the corporate scandals of 2001 and 2002. The act mandated the board members become more active in overseeing finances and perform audits. Although the act itself applies to for-profit publicly traded companies it served as a warning to the non-profit sector. I feel that the biggest influence of SOX in the non-profit sector was that is responsible for the sudden increase in financial comities on the board of directors once it was enacted.
    http://www.boardsource.org/dl.asp?document_id=558

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