What was the purpose of the Sarbanes-Oxley Act?

The purpose of the Sarbanes-Oxley Act is centered around enhancing corporate governance and protecting investors, particularly in the wake of major corporate scandals such as Enron and WorldCom. This legislation, enacted in 2002, established stringent reforms to improve financial disclosures from corporations and to combat corporate accounting fraud.

Key provisions of the act include increased accountability for company executives and boards, along with requirements for financial reporting accuracy. By instituting these guidelines, the act seeks to restore public confidence in the integrity of financial statements and the corporate sector as a whole. Additionally, it mandates that the oversight of financial reporting is taken seriously to promote transparency, ultimately safeguarding investors' interests.

In contrast, the other options relate to unrelated areas such as renewable energy, waste reduction in electronics, and environmental emission regulations, which are not addressed by the Sarbanes-Oxley Act. Therefore, the focus on corporate governance and investor protection makes the first option the most appropriate choice regarding the purpose of the act.