Sarbanes-Oxley Act
A law that set new requirements for all public company boards
Real World Example
The Sarbanes-Oxley Act, passed in 2002, aimed to prevent corporate fraud after scandals like Enron, which had shaken the financial markets. This law highlighted the ongoing tension between corporate interests and the need for transparency and accountability, a concern that remains relevant today. For individuals, this act helps protect investments by ensuring companies provide honest financial information, which is crucial for anyone with a 401(k) or stock investments. The act's emphasis on ethics and accountability influences how businesses operate, encouraging them to be more transparent with consumers and employees alike. As a result, people can have greater confidence in the stability of their financial futures and trust in the companies they support or work for.
