Sarbanes-Oxley will make little difference – Understanding the real reasons for Corporate Failures

• Date: November 12, 2009
• Source: External

Corporate Governance is earning limelight in the wake of collapse of many big wigs like the Enron, WorldCom and the recent Satyam. Though the compelling reason for such debacles has been improper financial reporting, it should be seen as a collective responsibility of all stakeholders.

Studies done on such incidents have unearthed other reasons like poor strategic decisions, expansions that are not justified or well thought of, greed and power lust of people at the helm of business, insufficient risk evaluation and mitigation plans.

More in detail on the actual factors that influence a governance failure read on