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Additionally, in the present day organizations contest with each other to offer the finest HRM practices after realizing that the most important assets were their employees. In the United…
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Download file to see previous pages Thus, its main aim was to observe the financial and accounting standards in government owned companies, through this the liability of manager to subordinates will be increased. Therefore, the rampant crisis of trust in American capitalism that was aroused from scandals in WorldCom, Enron and other companies will calm down (SOX, 2002).
However, Sarbanes-Oxley (SOX) has also created major negative effects in the United States corporate. First of all, majority of companies have decided to stay held privately since being public makes them to accountable to the SOX act. Additionally, other public companies that had their names in the stock list have removed themselves. Therefore economists say that this is a big concern since it could lower the economist’s entrepreneur spirit (Zhang, 2007).
Secondly, senior managers nowadays instead of putting more attention on strategizing the growth of their firms, they have been seen to be more concerned on the ethical statuses of their organizations. Furthermore, they are hesitative to make brave business decisions and have become hesitant in their plans to expand. Thus, the SOX has become somehow too much of a regulation for the corporate America (Rao, ...Download file to see next pagesRead More
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