Wk10 Comment from Peers DQ1AE and DQ2 CK Assignment

Wk10 Comment from Peers DQ1AE and DQ2 CK - Assignment Example I also liked the comment you mentioned in your response which stated that companies that have good corporate governance are worth nearly 27% more. This statement clearly shows that ethical conduct is expected and rewarded in the marketplace by investors. â€Å"Ethical conduct is something that becomes inherent in an organization over a long period of time (Raymond, 2011). DQ2 - I agree with you that corporate officers did not have must accountability in the past. This all changed with the creation of the Sarbanes-Oxley Act of 2002. Today corporate executive officers such as CEOs which are found guilty of fraudulent behavior can receive up to 20 years of prison time (Sox-Online). Criminal penalties are covered by section 802 of the Sarbanes-Oxley Act. Now that corporate executives face such steep and severe penalties for white collar crimes they will think twice before committing this type of criminal behavior. I like and I believe in the Sarbanes-Oxley Act, but the costs to implement the Act are extremely high. It is estimated that first year compliance with Section 404 of the Sarbanes-Oxley Act can cost upwards of $4.6 million (D’Aquila, 2009). The SEC should look for ways to reduce the constraints and mandates that are driving cost upwards in the implementation of the Sarbanes-Oxley