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– Nelson Mandela

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Week 4: Compliance and the Sarbanes-Oxley (SOX) Act

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Q In the context of the world of business, explain what we mean by the term compliance. Relating to this, is anyone familiar with the Sarbanes-Oxley (SOX) legislation enacted by Congress in 2002? What was contained in this legislation, and what prompted it? Can you provide a specific example of one of the major points of this legislation? Why was it enacted? Separately, does the term compliance apply to any other areas of business besides the SOX legislation?

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The term compliance describes the ability to act accordingly to an order, set of rules or request. In the world of business, an example would be like company policies.