Describe your thoughts on prot

Describe your thoughts on protecting investors and contributorsfrom losing trust in how the organization manages the investmentthey have made. Do you think the abuse that occurred at Enron couldhappen in health care? Do you think legislation such asSarbanes-Oxley should apply to health care? Why?

Answer:

It Is important to protect investorsand contributors from losing trust because most equity growth comefrom them and is one of the primary objectives in a healthcareorganization. If low rates of equity growth we prognosticated inthe future most likely the organization will not be able to providethe levels of resources. Open and clear communication isrecommended to maintain investors in the loop about the finances orthe organization for trust continuance. since being open andcommunicadve is the beginning of any healthy relationship.Providing the true statement of an organization ,protect theinvestors and secure a mutual trust for futre equity growth. theresponsibility and Transparency Act or 2002 oversee accountabilityto ensure independence by barring activities that pose conflicts ofInterest and to Increase transparency of transaction in the financedepartment protecting the investors and contributors of anotherEnron Scandal. Because ol all the regulations and Acts protectingthe investors there is minimal chance that could happen again thehealthcare system. According to Crudele (2015). Through Regulationsand NMS, the SEC has fostered innovations in the stocks marketswhile recognizing the need to protect fair and efficient access forall investors”. therefore Investors are protected. Several sectionsof the legislation of SOX (Sarbanes-Oxley) Act appear to berelevant to the healthcare industry such as the organizationresponsibility for financial reports that requires financialmanagers certify that report contains no false statements and itscompletely correct. The SOX act is intended to safeguard theecopomy since the healthcare Industry is a large part of It. Thereare also a number of provisions of the Act that also apply toprivately held companies, for example the willful destruction ofevidence to impede a Federal investigation.


 
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