The Sarbanes-Oxley Act of 2002 is a lot more than a "comprehensive accounting measure,'' consequently the 92-year-old American Society of Safety Engineers recently developed and distributed a technical report on the new law to our 30,000 members, who are occupational safety, health and environmental professionals. The act not only mandates that chief executive officers and chief financial officers subject to Securities and Exchange Commission rules meet stringent corporate accountability requirements aimed at improving the quality of corporate financial reporting but also requires an organization to report an operation that has a failure-safety, environmental or property-that may significantly impact the organization's financial soundness.( Sarich, John (2005)) For example, a chemical spill on company property requiring extensive time and costs to clean up could trigger the reporting element.
On the other hand, if during the normal course of business a key production tool in a manufacturing plant were to be damaged beyond repair and replacement was necessary, this might not require reporting. But if the loss of the tool had a substantial impact on the total production capacity of the plant and the operations' financial underpinnings were at stake, it may need to be reported.( Sarich, John (2005)) Occupational safety, health and environmental professionals and risk managers play a major role in complying with the Sarbanes-Oxley Act, since it covers all corporate operations, including their own occupational safety, health and environmental systems.
In effect, this measure may do more to improve workplace safety and raise awareness of its positive effect on a corporation's bottom line than any other recent laws.(Stuart, Jacqueline B. (2004))
Safety, fitness and ecological professionals and risk managers with observance responsibilities are now positioned in the position of steering uncharted waters in regard to this act, though at the same time a series of legal proceedings will provide for......
