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The Consequences of Our (Their) Actions

Discussion in 'Issues Around the World' started by mikeky, Dec 11, 2002.

  1. mikeky

    mikeky Member

    With the collapse of Enron, our leaders obviously had to do something to show they were serious and so thus came the <a href="http://www.sec.gov/news/press/2002-128.htm">Sarbanes-Oxley Act</a>. But, as usual, action comes with a price:

    <a href="http://www.business20.com/articles/mag/0,1640,45422,FF.html">Business2.0</a>
    So a potential major cost arises for companies that haven't done anything wrong, but are punished anyway because, after all, they are big business, and they can't be trusted. Will the knee-jerk reactions never stop? Will we always punish all after the fact for the sins of a few? I guess so.
  2. ShinyTop

    ShinyTop I know what is right or wrong!

    Just read this and other forums. The thinking people in here have been screaming for action and equating non action with guilt on the part of the administration and Congress. But what would you have done? Should not the CEO's be held personally responsible when they rape a company and leave with hundreds of millions of dollars? I do think the law should disallow the corporations paying for insurance to shield the CEO's. What kind of accountability is that? And takes away the very profit they are trying to protect.
  3. yazdzik

    yazdzik Veteran Member

    Dear Friends,
    Believing that such a piece of legislation even borders on an intelligent response to the predicament vilifies our curial system.
    One cannot remove the responsibility for compliance from the felt need to be honest, and the punishment for the breach of that fiduciary responsibility away from those whose job is is to oversee. By destroying the accounting system as we knew it, we have not improved accountablity, merely moved the opportunities to bypass GAAP elsewhere.
    Perjury in a filing is perjury, and if we require all men to meet standards of truthfulness, then changing the standards about which one need be truthful is futile prestidigitation. The rabbit was always in the hat.
    To argue that the accounting debacles of the last few years are failures of law and not of character is to abjure free will, responsibility, and individual freedom.
    We cannot solve dishonesty by delineating its components differently, but by living honestly.

  4. mikeky

    mikeky Member

    But ST, it seems that this, in an effort to catch would be cheaters, ends up costing (punishing) innocent companies and their shareholders, when tools were already there (Martin's rabbit in a hat) to punish those that actually did cheat.

    There should be strict punishment for those that willingly defraud, but why more red tape for those that do not.
  5. ShinyTop

    ShinyTop I know what is right or wrong!

    I am not defending it, I am saying that the administration and congress reacted to unrelenting requets for action. Well known forum hosts and news people were using inaction as a cause for demands of impeachment. Hard for elected officials to not pass something. Its a pity more record keeping is the only thing they could come up with.

    I think the perception that they were getting by with nothing being done was too much. There was no blood to appease those injured.
  6. mikeky

    mikeky Member

    LOL, I never knew he was so powerful. :)
  7. ShinyTop

    ShinyTop I know what is right or wrong!

    He's not except when he can silence others. Actually just using him as an example of what Congress was reacting to.

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