Sarbanes-Oxley Holds Execs Personally Responsible for Data


The Sarbanes-Oxley Act (SOA) of 2002 is the ‘‘legal centerpiece of sweeping reforms aimed at preventing corporate malfeasance.’’ [6] Passed in reaction to the corporate scandals that rocked Wall Street in recent years, and set to take effect in 2004, Sarbanes-Oxley will hold CEOs and chief financial officers personally responsible for the accuracy of their companies’ numbers. Executives who fail to comply can face twenty years in jail. [7]

If information (including casual chat) related to financial reports is communicated via IM, there may be an obligation under Sarbanes-Oxley to retain those messages. The best advice for organizations that are struggling with SOA compliance is to have legal, compliance, and IT professionals review the role instant messaging plays vis-a`-vis SOA and other governmental and industry regulations, and use a combination of technology, policy, and education to ensure compliance and shore up risks.

[6]Phyllis Plitch, ‘‘A Piece of the Action: Corporate Governance Is Hot—And There’s No Shortage of Companies Promising to Help,’’ The Wall Street Journal (October 27, 2003), R9.

[7]Olga Kharif, ‘‘For CFOs, a Crash Course in Tech,’’ Business-WeekOnline (September 30, 2003), www.businessweek.com/technology/content/sep2003/tc20030930_9216_PG1_tc131.htm .




Instant Messaging Rules. A Business Guide to Managing Policies, Security, and Legal Issues for Safe IM Communication
Instant Messaging Rules: A Business Guide to Managing Policies, Security, and Legal Issues for Safe IM Communication
ISBN: 0814472532
EAN: 2147483647
Year: 2003
Pages: 241
Authors: Nancy Flynn

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