Sarbanes_Oxley

The Sarbanes-Oxley act as, stated by Larson, Thomspon & Walters, "intended to improve the accuracy and reliability of corporate disclosures that are made pursuant to the US federal securities law, hold corporate managers responsible for disclosures and provide transparency in financial reporting in independent audits of public companies (p.143). Dana indicated there are more lawsuits surrounding Sarbanes Oxley. One individual concerned about new exposures is the corporate attorneys. Though I would not refer to this as a benefit of Sarbanes Oxley it deserves a chuckle. “Attorneys have been conscious of the regulators, who have imposed rigorous standards, creating new exposures for the corporate attorney. While it is possible that a D&O (Directors and Officer) policy may provide some protection for the attorney, especially if the attorney is a director there is still some debate.”( http://www.arcbrokers.com/employeroverview.html.) The lesson for everyone to understand is the definition of EPLI. This is a must have for corporate executives and business owners in the face of increase regulation. Just 1 EPL suit could bankrupt 50% of small businesses without EPLI, hurt the bottom line of any corporation, and simply put catch most off guard. In addition, presenting recent and relevant cases and their relative settlement costs would be very compelling argument in support of EPLI. In the past, EPLI used to be discretionary and optional. Economic downturns have increased these claims with wrongful termination suits. Many lack merit but all must be defended. EPLI covers that defense. And finally in support of the HR professional's case, a cost benefit analysis should be considered. General liability insurance alone could leave the organization too vulnerable. Reference: Cavallaro, C. ARC Access & Surplus (2005) Retrieved from http://www.arcbrokers.com/employerview.html . Larson, G.M, Thompson, J.H., Walters, B. (2004). Human resource aspects of the Sarbanes-Oxley Act. Journal of Legal, Ethical, and Regulatory Issues 7(2). 143-154