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Post by Sapphire Capital on Sept 25, 2008 4:36:36 GMT 4
A Social Defense of Sarbanes-Oxley James A. Fanto Brooklyn Law School New York Law School Law Review, Vol. 52, 2007/2008 Brooklyn Law School, Legal Studies Research Paper No. 111 Abstract: In this essay, I argue that the scandals leading to Sarbanes-Oxley and the resulting rapid and powerful backlash against it arose because of the prevalence of the self-interest ideology in business, finance, and indeed, U.S. society, which views individuals solely as profit-maximizers. Sarbanes-Oxley is fundamentally a reassertion of social values against the socially destructive aspects of the self-interest ideology. I provide several examples of the law's social orientation, which require professionalism in the boards of directors of public companies and in the research analysts in investment banks. I also observe that changing the ideology of executives and financiers will likely require more than the legal reforms offered by Sarbanes-Oxley. Yet, this law's contribution to an alternative, more pro-social perspective and its practical reforms are grounds for its defense. papers.ssrn.com/sol3/Delivery.cfm/SSRN_ID1158589_code865180.pdf?abstractid=1158589&mirid=1
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