This was done to both rein in bad actors
Posted: Thu Jan 02, 2025 7:53 am
Government regulations can be used to set standards for businesses’ operations and activities, and when those regulations change, it affects how businesses must operate. For example, as a result of the accounting scandals at the turn of the 21st century, the U.S. Securities and Exchange Commission (SEC) heightened its focus on corporate compliance. This heightened inspection led to the passage of the Sarbanes-Oxley Act of 2002, which enforced stricter rules and regulations on publicly traded companies.
That may have been engaged in fraudulent or unethical business practices and cio and cto email lists to reassure public investors that their investments were safe with these companies. These sorts of changes can have an immediate effect on businesses due to the higher costs associated with complying with new rules and regulations. Companies may need to hire new personnel or purchase additional software solutions just to comply with the new laws, which adds overhead costs as well as further squeezes profit margins.
In addition, these legislative changes could eliminate certain types of competitive advantages held by individual firms, meaning companies now must compete solely based on their performance rather than taking advantage of any particular loophole or exemption provided by law before its alteration. Outside direct impacts from changing legislation, there are also indirect effects from societal reactions, which will ultimately create pressure for legislators to act accordingly regardless of whether they agree or not with said proposed legislation; this is similar to what happened when people reacted negatively towards Wall Street’s ulterior motives leading up to the 2008 financial crisis.
That may have been engaged in fraudulent or unethical business practices and cio and cto email lists to reassure public investors that their investments were safe with these companies. These sorts of changes can have an immediate effect on businesses due to the higher costs associated with complying with new rules and regulations. Companies may need to hire new personnel or purchase additional software solutions just to comply with the new laws, which adds overhead costs as well as further squeezes profit margins.
In addition, these legislative changes could eliminate certain types of competitive advantages held by individual firms, meaning companies now must compete solely based on their performance rather than taking advantage of any particular loophole or exemption provided by law before its alteration. Outside direct impacts from changing legislation, there are also indirect effects from societal reactions, which will ultimately create pressure for legislators to act accordingly regardless of whether they agree or not with said proposed legislation; this is similar to what happened when people reacted negatively towards Wall Street’s ulterior motives leading up to the 2008 financial crisis.