What is the role of the board of directors in the development of a corporate compliance structure?
Recently there has been some criticism to the effect that, as a result of the corporate scandals and Sarbanes-Oxley and the other regulatory responses to the scandals, the governing board is so focused on process – that is, on form – that it is not paying any attention to operations, which constitute the real substance of the enterprise. Is that a fair comment? Verniero: Under Sarbanes-Oxley and in this current regulatory climate, the role of directors in developing compliance programs is absolutely essential. Even before the enactment of the statute, directors were well advised to consider compliance a key element of corporate management. That said, directors must focus on other issues as well – such as business planning and a host of other subjects that are important to the success and health of the company. Recently, the SEC appointed an advisory committee to evaluate whether the costs of compliance under Sarbanes-Oxley are commensurate with its benefits, particularly in the context
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