THE 'APPLE' of GRC
"The Network has delivered a platform that is fresh, beautiful, and simply elegant for the user, adding interface assets that work to engage employees, while providing administrators and executives with the tools needed to truly manage compliance in a proactive fashion."
– Michael Rasmussen, GRC Analyst
United States Legislation
In July 2002, Congress passed the Sarbanes-Oxley Act to increase accountability and transparency in United States public companies in response to corporate scandals at Enron and other major U.S. organizations. Section 301 of Sarbanes-Oxley requires the audit committees of public companies to establish confidential complaint processes for the reporting of auditing and accounting irregularities.
In 2004, the Federal Sentencing Commission revised their Sentencing Guidelines for Corporations in light of Sarbanes-Oxley. The compliance measures that ensure more lenient sentencing for corporate wrongdoing include a recommendation for an internal confidential or anonymous complaint mechanism.
In addition, the Dodd-Frank Act (July 2010) sets up a “bounty program” which allow whistleblowers who report “original” information to the SEC about securities violations to obtain between 10 and 30 percent of any monetary sanctions awarded in excess of $1 million recovered against the company.
The Foreign Corrupt Practices Act (FCPA; 1977) makes it unlawful for a U.S. person, and certain foreign issuers of securities, to make a payment to a foreign official for the purpose of obtaining or retaining business for or with, or directing business to, any person. The Act was updated in 1998 to also apply to foreign firms and persons who take part in corrupt payment activity while in the U.S.. The FCPA also requires companies whose securities are listed in the U.S. to meet its accounting provisions.
Compare the Whistleblower Provisions of Dodd-Frank and SOX
External Resources
- Access to the Sarbanes-Oxley Final Rule relating to Audit Committees
- Frequently Asked Questions regarding Sarbanes-Oxley
- Read more about the SEC’s implementation of the Dodd-Frank Act
- The U.S. Department of Justice website on FCPA
PRESS RELEASES
The Network and BDO Consulting Release Fourth Quarter 2012 Corporate Fraud Index
The Network and BDO Consulting have released the Corporate Quarterly Fraud Index for the fourth quarter of 2012. Fraud Reporting Percentage (FRP) decreased slightly from the third quarter of 2012, when fraud reporting set a record high, but rose year-over-year. “Unfortunately, fraud and corporate malfeasance continue to threaten the workplace, in terms of revenue, reputation and employee morale,” said Luis Ramos, CEO of The Network....
FEATURED ARTICLES
Set Example, Train Employees To Build Ethical Culture
In a recent Investor's Business Daily article, Luis Ramos, CEO of The Network, says that ethics compliance should not be viewed as a cost without benefit. "The goal isn't just to say you trained your people. It’s to make sure they understand..."
