Santos, Kahlil Jae B. Apr.

11, 2018
Nieva, Jerome Vincent B. ABM 210
Fernandez, Fausto

Sarbanes-Oxley (SOX) Act of 2002

The U.S. Congress passed the Sarbanes-Oxley Act of 2002 on July 30 of that year to
help protect investors from fraudulent financial reporting by corporations. Also known as
the SOX Act of 2002 and the Corporate Responsibility Act of 2002, it mandated strict
reforms to existing securities regulations and imposed tough new penalties on
lawbreakers.
The Sarbanes-Oxley Act of 2002 came in response to financial scandals in the early
2000s involving publicly traded companies such as Enron Corporation, Tyco
International plc, and WorldCom. The high-profile frauds shook investor confidence in
the trustworthiness of corporate financial statements and led many to demand an
overhaul of decades-old regulatory standards.
The act took its name from its two sponsors—Sen. Paul S. Sarbanes (D-Md.) and Rep.
Michael G. Oxley (R-Ohio).
The new law set out reforms and additions in four principal areas:
1. Corporate responsibility
2. Increased criminal punishment
3. Accounting regulation
4. New protections

Major Provisions of the Sarbanes-Oxley (SOX) Act of 2002

Section 302 of the SOX Act of 2002 mandates that senior corporate officers
personally certify in writing that the company's financial statements "comply with SEC
disclosure requirements and fairly present in all material aspects the operations and
financial condition of the issuer." Officers who sign off on financial statements that they
know to be inaccurate are subject to criminal penalties, including prison terms.

Section 404 of the SOX Act of 2002 requires that management and auditors establish
internal controls and reporting methods to ensure the adequacy of those controls. Some
critics of the law have complained that the requirements in Section 404 can have a
negative impact on publicly traded companies because it's often expensive to establish
and maintain the necessary internal controls.
Section 802 of the SOX Act of 2002 contains the three rules that affect recordkeeping.
The first deals with destruction and falsification of records. The second strictly defines
the retention period for storing records. The third rule outlines the specific business
records that companies need to store, which includes electronic communications.
10 Philanthropists
Mercedes Zobel - E. Zobel's Foundation, Inc.
- helps disadvantaged Filipinos
- the foundation focuses on five major programs: school infrastructure development,
teacher training, student health and nutrition, learning support and other special
projects.
Andrew Tan - Megaworld foundation
- founded in 1997 based on Andrew Tan’s belief that “education is the pivotal key to
alleviating poverty in the Philippines.” One of the organization’s notable initiatives
- supporting over 400 underprivileged scholars in 21 universities.
- also promotes a culture of volunteerism and community involvement among its
employees.
Manuel V. Pangilinan - PLDT Smart Foundation, Makati Medical Center
Foundation
- PLDT and Smart chairman
- developed programs for education, livelihood/social entrepreneurship and
microfinance, disaster preparedness, youth, poverty reduction and sports.
- He also chairs the Makati Medical Center Foundation which has programs with public
hospitals, surgical missions, and rescue operations.
Antonio Meloto - Gawad Kalinga
- He founded Gawad Kalinga and currently acts as chairman of the poverty alleviation
and nation-building movement.
- Gawad Kalinga’s goal is to “end poverty for 5 million families by 2024.”
- Community Infrastructure, Child and Youth Development, Community Building, Bayan-
Anihan, & GK Kalusugan are some of their programs
John L. Gokongwei Jr. - Gokongwei Brothers Foundation
- it started with his three brothers in 1992, and in 2006, he gifted the foundation with half
of his shares in JG Summit, a donation that worth $1 billion
- he was able to give away $7 million to De La Salle University to build an eco-friendly
building for the school & donated $112 million to an un-named foundation
Erramon Aboitiz
The CEO and president of Aboitiz Equity Ventures, also heads the Aboitiz Foundation.
The foundation focuses on education, enterprise development, environment, as well as
health and well-being.
Ramon Ang
The man behind San Miguel, Ramon Ang, is an active supporter of various causes.
Most notably, in 2017, Ang gave financial aid to the families of those slain in Marawi
through the San Miguel Foundation.
Jose Marie T. Albert
Fila Isport life, Inc.’s Jose Marie T. Albert doubles as the president of charitable
organization Operation Compassion. The faith-based organization works toward
“community development and reaching less fortunate children which includes feeding
and outreach programs for the indigent and street children.”
Carmela Andal-Castro
The Consuelo Zobel Alger Foundation was founded in 1988 “to improve the quality of
life of disadvantaged children, women, and families in the Philippines and Hawaii.” In
the Philippines, Carmela Andal-Castro acts as managing director with a focus on child
abuse prevention and treatment programs that benefit thousands of children, women,
and youth.
Diosdado “Dado” Banatao, Philippine Development Foundation and Dado
Banatao Educational Foundation
The founder of Tallwood Venture Capital, Diosdado “Dado” Banatao, is also the man
behind the Philippine Development Foundation and Dado Banatao Educational
Foundation. PhilDev works “to create an ecosystem of science and technology in the
Philippines” while his scholarship foundation awards grants to Filipino students that
excel in engineering and technology.