Tera Tech Workshee

Tera Tech Workshee

LEARNING TEAM – CORPORATE COMPLIANCE RESEARCH
Businesses in society today face many issues and dilemmas that affect their business operations.   In response to increased concern and awareness of corporate governance, interest and financial reporting, President Bush signed the Sarbanes-Oxley Act (SOX) into law on July 30, 2002. The provisions of SOX affect the operation of public companies in several aspects, including corporate governance, financial disclosure, executive activities and responsibilities, and auditor independence.   The (SOX) Act now holds executives accountable for the organization’s compliance, identifying weaknesses and taking actions to mitigate those weaknesses.   In this analysis, several companies are research and benchmarked against to synthesize key findings of issues, and offer ideas that CareNetWest can use to improve the organizations success, without “reinventing the wheel.”  












Introduction
CareNetWest is currently a strong and viable publicly traded company listed on the New York Stock Exchange. While the company was growing at an impressive rate, the Sarbanes Oxley Act of 2002 became law. No plans are in place for this compliance and the current leadership has little or no business experience. Management is, looking to the founder, Dr. Tad Smith, for all business decisions and operational guidance. The new law proposed that all publicly traded companies had to comply with new governmental regulations including timeframes by the federal government and the Securities and Exchange Commission that forced companies to spend millions of dollars to ensure compliance. CareNetWest has found that after avoiding or ignoring the inevitable challenges of running a publicly traded company, a risk management leader is now necessary and the executive leadership as well as the Board of Directors is now going to have to make hard decisions to ensure the changes are made that are required to address.  
Current situation:...