Why Do Companies Need Government Regulations

The government has set many business regulations in place to assist and protect the public and hold corporations accountable for the decisions made. Many sectors of businesses complained about government regulations and their restrictive requirements. With these regulations in place companies have still posted large profits as the nation emerges from financial crisis. Many of the companies were assisted by government bailout and stimulus programs that paid back their loans. These statutory requirements have been denounced, side-stepped, and violated by many businesses since the early twentieth century when corporate income tax and anti-trust laws were first enacted. American businesses have both prospered and suffered as a consequence of government action-collaborative and complementary. American consumers have …show more content…
Violations are punishable by heavy fines and subject to civil actions. The Commerce Department provides a nationwide program to help small businesses increase overseas sales of their products helping them achieve continuing profitability. The Sarbanes-Oxley Act of 2002 was enacted to govern accounting, auditing, and corporate responsibilities. It established an oversight board to monitor the accounting industry; tightened audit regulations and controls; toughened penalties against executives who commit corporate fraud; strengthened accounting disclosure requirements and ethical guidelines for corporate officers; established corporate board structure and membership guidelines; established guidelines with regard to analyst conflicts of interest; mandated instant disclosure of stock sales by corporate executives; and increased securities regulation authority and budget for auditors and