Survey show that CEOs view Sarbanes-Oxley as ineffective
Latest survey from Georgia State and Clemson universities about Sarbanes Oxley. Said that While the chiefs of corporations across the United States view the 2002 federal accounting statute as reactionary and over-burdensome, they still cite “improper accounting practices” as the No. 1 ethical issue facing business today, according to a survey conducted by ethics centers at Georgia State and Clemson universities.
Respondent: 293 chief executives at both private and public companies in 48 states.
Result:
- 62 % of executives agreed that the Sarbanes-Oxley Act strengthened public and investor trust in corporate America
- 74 % said it had done nothing to improve ethical standards at their businesses.
- 68 % agreed that the act was an overreaction to the ethical failures of a handful of executives and has proven burdensome and unnecessary.
- 60 % of private company CEOs said CEO pay at most large public companies is excessive.
- 31 % of CEOs at public companies agreed public company CEO pay is excessive.
- 42% said it was properly aligned while 45 percent said it wasn’t.
- 66% said the convictions show “the system works,” but about the same number said the convictions also “further erode public trust and confidence in business leaders” and “reinforce a negative, unfair stereotype of CEOs.”
- 90 % said the scandals, which shook the business world in the early 2000s, have made corporate leaders more attentive to ethical concerns.
- 94 percent said ethical standards would be beneficial in the long run
Popularity: 11% [?]
