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Sarbanes-Oxley Act of 2002
Organizations are often led to gain profit by not always doing what is right or legal for that matter. Some may want to hide trails of misled numbers in auditing reports while others will look the other way so that the organization can make a couple dollars. Ensuring that the government holds those companies accountable for not following the law is essential so that we do not go through another financial crisis. The Sarbanes-Oxley Act of 2002 was one way the government intervened to help detour organizations from fraudulent behavior and acts. The article “Sarbanes-Oxley law discourages risk-taking, corporate growth” discusses the impact of the SOX act and business growth.
Sarbanes-Oxley Law Discourages Risk-taking, Corporate Growth
The article discussed the Sarbanes-Oxley Act of 2002 and how it limits the growth in business by making those businesses shy away from any risky undertakings. The act has made organizations more prone to do low-risk businesses and, as a result, has brought on more cost saving ways “such as job layoffs and outsourcing” (Mishra, 2011). Meaning that organizations are cutting out jobs and outsourcing a lot of the work to save on money so that they can still make a profit. The article discusses how due to the SOX act more directors are spending too much time trying to comply with the act than trying to make plans on how to be more profitable and gain more capital. It has not helped in solving issues of growth and profits for organizations but rather has limited growth in those two areas. It calls for the repeal of the act and with that will help organizations go back to an era of “corporate growth and creating jobs again” (Mishra, 2011).
Sarbanes-Oxley Act of 2002
The Sarbanes-Oxley Act of 2002 was enacted due to several frauds and scandals that began in the 2000’s, the most famous being that of Enron

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