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    Corporate Governance-Amazon, A US Company Sarbanes Oxley Act

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    Chitra Wadhwa
    The Sarbanes-Oxley Act of 2002 aimed to improve corporate governance practices and transparency in financial reporting for US public companies and others registered with the SEC. It sought to restore investor confidence following corporate accounting scandals by preventing fraud and requiring accuracy in financial reporting, independent auditing, and greater corporate responsibility. While compliance with the Act is discussed, its effects on areas like IT, accounting fees, and supply chain management are also debated.

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    Corporate Governance-Amazon, A US Company Sarbanes Oxley Act

    Uploaded by

    Chitra Wadhwa
    57 views4 pages
    The Sarbanes-Oxley Act of 2002 aimed to improve corporate governance practices and transparency in financial reporting for US public companies and others registered with the SEC. It sought to restore investor confidence following corporate accounting scandals by preventing fraud and requiring accuracy in financial reporting, independent auditing, and greater corporate responsibility. While compliance with the Act is discussed, its effects on areas like IT, accounting fees, and supply chain management are also debated.

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    The Sarbanes-Oxley Act of 2002 aimed to improve corporate governance practices and transparency in financial reporting for US public companies and others registered with the SEC. It sought to restore investor confidence following corporate accounting scandals by preventing fraud and requiring accuracy in financial reporting, independent auditing, and greater corporate responsibility. While compliance with the Act is discussed, its effects on areas like IT, accounting fees, and supply chain management are also debated.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    57 views4 pages

    Corporate Governance-Amazon, A US Company Sarbanes Oxley Act

    Uploaded by

    Chitra Wadhwa
    The Sarbanes-Oxley Act of 2002 aimed to improve corporate governance practices and transparency in financial reporting for US public companies and others registered with the SEC. It sought to restore investor confidence following corporate accounting scandals by preventing fraud and requiring accuracy in financial reporting, independent auditing, and greater corporate responsibility. While compliance with the Act is discussed, its effects on areas like IT, accounting fees, and supply chain management are also debated.

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    © All Rights Reserved
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    Corporate Governance- Amazon, a US company

    Sarbanes Oxley Act:


    In July 2002, the U.S. Congress passed the Sarbanes Oxley Act (SOX),
    particularly designed to make US corporations more transparent and
    accountable to their stakeholders.

    The Act seeks to re-establish investor confidence by providing good


    corporate governance practice to prevent corporate scams and frauds
    in business corporations, to improve accuracy and transparency in
    financial reporting, accounting service of listed companies, enhance
    corporate responsibility and independent auditing.

    Applicability of the Act is not confined only to publicly owned US


    companies, but also extends to other units registered with the
    Securities Exchange Commission. However, there is a common thread
    running between them, i.e., that governance matters. Unless corporate
    governance is integrated with strategic planning and shareholders are
    willing to bear the additional required expenses, effective governance
    cannot be achieved.

    The above events encouraged the development of the present situation


    where different aspects of the Sarbanes Oxley Act are discusses, and
    its effects, limitations and internal control after the act were passed
    and what lies beyond its compliance.

    Also discussed are the varied applications of the act in areas such as
    IT, the fee structure of the Big Four Accounting Firms, the mid-size
    accounting firms, supply chain management and insurance.
    The American Model of industry structure and corporate governance
    followed by Amazon is as follows:

    Corporate Governance- Adidas, a German company

    Germany is known for industrialisation since beginning of


    19th century. Germany exports sophisticated machinery in a large way
    since last five decades. The industries are financed by wealthy German
    families, small shareholders, banks and foreign investors. The large
    private bankers who invested in industry had a bigger say in running
    those industries and hence performance was not up to the mark.
    Germany is considering proper steps towards corporate governance
    since second half of 19th century. The company law in Germany of
    1870 created dual board structure to care of small investors and the
    public. The company law in 1884 made information and openness as
    the key theme. The law also mandated minimum attendance at the
    first shareholders meeting of any company.

    World War I saw considerable changes in industries in Germany by


    dismantling the rich. As on date Germany has large number of family
    controlled companies. The smaller companies are controlled by banks.
    The proxy voting by small investors was introduced in Germany in
    year 1884.

    The German Model of industry and corporate governance followed by


    Amazon may be seen below

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