The Role of Personal Accountability in the New Environment

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.