SOX & Corporate Codes of Ethics
Companies governed by the Sarbanes-Oxley Act (SOX) know well that its reach goes beyond accounting and auditing requirements. SOX provides enhanced protections for employees who report corporate fraud and wrongdoing and adds federal criminal penalties for retaliation taken against whistleblowers. These penalties are not limited to retaliation for disclosures related to securities fraud and certain penalties apply to private and public companies alike.
Squire Sanders labor and employment lawyers counsel companies on SOX compliance and litigation including:
- Establishing procedures for receipt, retention and treatment of employee complaints regarding accounting, internal accounting controls or auditing matters and submission of concerns regarding questionable accounting or auditing matters
- Conducting and managing internal investigations related to employee whistleblowing
- Reviewing employment policies to ensure that adequate employee complaint policies and procedures are in place
- Training of management employees in SOX compliance responsibilities
- Defending companies against SOX whisteblower claims in administrative and court proceedings
Codes of ethics or conduct are also becoming a standard, not only for publicly traded companies but also for private companies that seek to minimize potential losses related to employee wrongdoing, increase outsiders’ confidence in their businesses or establish addition litigation defenses. In our post-Enron era, many companies are feeling a heightened focus on ethics and accountability in corporate settings and a growing desire to establish some checks and balancing within their business organizations, which has encouraged an increasing desire to comply, whether in form or substance, to many SOX requirements now being viewed by many as "best practices." Squire Sanders labor and employment lawyers can help both publicly traded and private clients fashion the right code of conduct for the organization and train managers on effective implementation.