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Corporate governance prior to the implementation of SOX was not as strictly control, providing grounds for manipulation of data and resources as seen fit by company officials. With the SOX Act, publicly traded companies were forced into tighter security and detailed reporting of their operations and financial statements.
In this study we see how companies such as PepsiCo, Lowe’s, Martha Stewart, Hewlett Packard, have made changes to their corporate governance in order to comply with SOX standards. When companies make the extra effort to enforce these regulations throughout the organization it presents them as being responsible in the eyes of their stakeholders...
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