The Role of Personal Accountability in the New Environment

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The Bulletin: Volume 1, Issue 1

Boards of directors and CEOs have no choice but to examine their governance processes to maintain and, for many businesses, regain confidence. President Bush recently signed into law the Sarbanes-Oxley Act of 2002 (SOX), which sets forth new corporate governance standards for public companies within the United States.

This issue outlines seven key principles that provide a framework for establishing and reinforcing the personal accountability of management and the board of directors. Application of these principles will create a healthy tension within the organization and facilitate communication between management and the board.

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