PROPOSAL FOR A SOLUTION Mary S. Durr Walden University October 23, 2010
AbstractThe purpose of this research is to determine if theACD Company decides to “go green,” would it havean adverse implication on its financial institution.This research provides answers to those concerns.It will show for those companies investing in anelectronic document management system willhave no long-term effects on their go greenpractices. Notwithstanding, EDM systems manageelectronic document, which allows companies tostay in compliance of all applicable laws,particularly, the Sarbanes-Oxley Act.
Going Green Effects on Financial Institution Can going green immobilize the effects on Financial Institution? Since 2002, government has been thoughtfully negotiating economic policies due to the stream of financial calamities brought on by a few financial corporations. The ultimate reason for researching this topic was due in part to a colleague asking if the ACD Company made the decision “go green”, what effect it would have on the company’s SOX initiatives.
Literature Reviews Jilovec (2011) discussed that there is no problemfor corporations to go green along as there is a recordmanagement system in place for storage, retrieval,indexing and archiving electronic documents. Thereshould also be a provision that would allow personnel tosegment key corporate data that function collaborativelyby making interminable amendments that can be traced,dispatched and approved. Stephen (2005) discussed two key features of SOX.First, it is thought that the law may have been approvedto reaction to the unspeakable corporate disasters thathad occurred with Enron, WorldCom, Adelphia, and Tyco
companies. SOX make known involuntary causes for CEOsto carry out corporate document managing as anessential part of their business practices. Second, purpose of the SOX is the veracity ofexamining procedures and financial documentation ofopenly traded corporation. Dependable record-keepingsystems are a prerequisite for corporations’ recordscompliance with Section 302(a) and 404(a) of SOX. (p.98)
Barker (2009) discussed the legal implications ofelectronic document retention and the legal consequenceof Corporation record management. However, Baker(2009) stated: A $1 billion company will generally face up to 147 lawsuits at any given time, and 90% of all U.S. companies will at some point experience litigation. When faced with a civil lawsuit, an organizations personalized documents often represent a large source of liability. Data and information stored in a companys information systems are discoverable in a court action, and may affect the legal suit. (p. 177)
Yim (2008) has further contextualized the practicalapproach to electronic document retention and storage thatdeals with records preservation for electronic signature.Under the electronic signatures in Global and NationalCommerce Act, any diversity of records can be stored inelectronic form. (p. 271)
Solution Recommendation is made to invest in an EDMsystem. An EDM system is the electronic management ofdocuments housed on an IT system platform. It utilizescomputer equipment and software for the purpose ofmanaging, controlling, locating, and retrieving Informationin electronic form. Exclusive of an EDM system, employeeswill characteristically develop their own groupings forfiling, indexing/retrieval, retention, storage, etc., of data. Atypical electronic document management system allowsemployees to function within companies’ guidelines byconsolidating documents by series, retention period,procedures for storing, retrieving, indexing, and purgingdocuments.
Conferring to (Downing 2006) statement: While traditional paper systems focus on the file level, an EDMS focuses on the document level. It requires users, at the point of creation, to make a records classification decision. (p. 45)It is no longer a matter of independent record system; itis about having a standardized approach to preservingdocuments (see Table 1 on slide 11).
Table 1Working Components of an EDM system:Active Description Work with EDMSLabel documents E-mail, HR records, X financial, operational, customer services, etc.Convert paper document Label and scan paper- X based documents into a digital formatCreate or receive Compose and receive Xdocument document content from other location.Link document Associate document X content with information sources.Extract document Extract documents X including the association of that document with other documents.Edit document Add, delete, or modify a X documentTranslate document Solidify content in a Xcontent (language) language other than the source language.Versioning document Create, alter, or received X document stamped with updated different version.Transform document Solidify document content Xcontent by transformation text to presentation slides. Note. From “A Framework for EDMS/ERMS Integration”, by J. Timothy Sprehe, 2004, Journal of Information Management, 38(6), p. 58.
ImplementationSteps:1. Make sure that processes that require employees to choose folders have a retention period.2. Make sure that the process for employees’ accessibility is available during the interface stages prior to installation.3. Make sure to hire personnel to maintain control of records retention.4. Make sure to integrate the new EDM system with other information systems within the organization.5. Provide employee training.
The rationale behind using an electronic documentmanagement system in the daily practice of the ADCCompany to go green is to provide standardization inrecord management.
ConclusionUsing an EDM system for the purpose of storingand retrieving electronic data is easier thanretrieving paper documents. It is typical, in anoffice setting, for one piece of paper to be Xerox atleast ten times because that one piece of the paperis use in multiple functions. Moreover, paper caneasily be distorted, lost or damaged. EDM systemallows records storage, retrieval, and archival inone single location without the benefits ofdestruction.
ReferencesBarker, R. M. (2009). The legal implications of electronic document retention: Changing the rules. Business Horizons, 52(2), 177- 186, 10p.Downing, L. (2006). Implementing EDMS: Putting people first. Information Management Journal, 40(4), 44- 50. 5p.Jilovec, N. (2011, June). Electronic document Management: Why it matters. iNews, pp. Issue 380, 11-14, 4p, 1 Chart.
Sprehe, T. J. (2004). A framework for EDMS/ERMS integration. Information Management, 38(6), p. 54-62, 7 p, 1 black and white photograph, 4 diagrams, 1 chart.Stephens, D. O. ( 2005). The Sarbanes-Oxley Act: Records management implications. Records Management Journal, 15(2), 98, 6p.
Wacker, C. (2010). The role electronic records management plays in promoting a greener work environment. Information Management. Retrieved from http://www.content.arma.org/imm/libraries/p ds, 21-25.Yim, S. J. (May 2008). A practical approach to electronic document retention and storage. Journal of Securities Compliance, 1(3), 271-287, 17p.