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Corporate Communications Execs Say Sarbox Has Changed Their Jobs


NEW YORK, Dec. 9, 2003 (SmartPros) Communications executives are playing an increasingly important role in corporate America as accounting and ethical issues have moved to the top of the government's and media's agendas. Of all major events over the past five years, the passage of the Sarbanes-Oxley Act has had the most significant impact on the corporate communications profession, according to a study conducted by KRC Research for Weber Shandwick.



In fact, 86 percent of corporate communications executives agree that the Sarbanes-Oxley Act has dramatically changed the nature of their jobs, as companies have made the communications departments a more integrated and critical component of the executive team.
 
"The highly publicized scandals at Enron and other corporations did for the private sector what Watergate did for the public sector, bringing a sweeping level of change," said Jack Leslie, chairman of Weber Shandwick. "The push towards transparency has increased the value and responsibility of the corporate communications function. This job is now on the front line of corporate reputation management, crisis response, litigation, and a range of other issues that communications executives a decade ago could not have imagined."
 
Leslie added, "The role of the corporate communications professional has increased in complexity and importance -- demanding greater expertise and incurring stronger pressure from the top."
 
The study found that over the past year, corporate communications executives dealt with issues associated with management and corporate governance with greater frequency than with issues such as labor disputes, product recalls or environmental infractions. More than eight in ten addressed issues regarding government regulation in the last year while more than two-thirds dealt with issues associated with a lawsuit against their company (69 percent). 
 
During the past five years, the job of the corporate communications executive has become more challenging, with 86 percent of the executives polled stating that their jobs have become increasingly complex and 82 percent reporting that their job has become at least somewhat more difficult.
 
The role of the corporate communications department has also increased in stature, the survey found. For example, 85 percent of corporate communications executives believe that senior management has increased the amount of attention it pays to corporate communications, while 76 percent say that their CEO is personally involved and engaged in corporate communications on a regular basis. Nearly three out of four (73 percent) of the executives report that senior management considers the job they do to be highly important.

2003 SmartPros Ltd. All rights reserved.

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