National Press Club

Corporate Governance

July 30, 2003

About This Video

Run time: 68 minutes

Chairman Donaldson talked about corporate governance, one year after the passage of the Sarbanes-Oxley Act. The law, the largest overhaul of business practices since the 1930s, places strict rules on the accounting industry and punishes executives for defrauding investors. Chairman Donaldson talked about the factors that caused recent corporate scandals, including the bursting of the stock market bubble, erosion of basic business principles, lack of fairness and integrity in the IPO market, and the focus on short-term, uninterrupted earnings growth to determine the health of a company. He also discussed the new rules, procedures, and oversight agencies created to combat corporate corruption. Following prepared remarks, the chairman responded to questions from the audience.