Corporate Governance

In many markets around the globe codes of governance are created for businesses to follow.  Although some of these codes are followed voluntarily, others must be followed in order to be in accordance with the law.  In The United States, the most widespread governance platform is the Sarbanes-Oxley Act of 2002.  In response to corporate scandals, The Sarbanes-Oxley Act of 2002 was signed into law in order to be able to ensure that firms are operating in an ethical and lawful manner.  All companies are required to file periodic reports with the Securities and Exchange Commission.  In response to this governance, Directv announced that they will be using the Approva Corporation to enhance visibility into internal activities. Firms that do not adhere to these controls receive severe penalties that have a dramatic effect on the profitability of the company and make the company appear to be corrupt in the public eye.  The last thing any business wants is their customers thinking that they operate using unethical practices.