PROPOSAL FOR

A SOLUTION Mary S. Durr

Walden University

October 23, 2010

Abstract The purpose of this research is to determine if the ACD Company decides to “go green,” would it have an adverse implication on its financial institution. This research provides answers to those concerns. It will show for those companies investing in an electronic document management system will have no long-term effects on their go green practices. Notwithstanding, EDM systems manage electronic document, which allows companies to stay 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 problem for corporations to go green along as there is a record management system in place for storage, retrieval, indexing and archiving electronic documents. There should also be a provision that would allow personnel to segment key corporate data that function collaboratively by 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 approved to reaction to the unspeakable corporate disasters that had occurred with Enron, WorldCom, Adelphia, and Tyco

companies. SOX make known involuntary causes for CEOs to carry out corporate document managing as an essential part of their business practices. Second, purpose of the SOX is the veracity of examining procedures and financial documentation of openly traded corporation. Dependable record-keeping systems are a prerequisite for corporations’ records compliance with Section 302(a) and 404(a) of SOX. (p. 98)

Barker (2009) discussed the legal implications of electronic document retention and the legal consequence of 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 organization's personalized documents often represent a large source of liability. Data and information stored in a company's information systems are discoverable in a court action, and may affect the legal suit. (p. 177)

Yim (2008) has further contextualized the practical approach to electronic document retention and storage that deals with records preservation for electronic signature. Under the electronic signatures in Global and National Commerce Act, any diversity of records can be stored in electronic form. (p. 271)

Solution Recommendation is made to invest in an EDM

system. An EDM system is the electronic management of documents housed on an IT system platform. It utilizes computer equipment and software for the purpose of managing, controlling, locating, and retrieving Information in electronic form. Exclusive of an EDM system, employees will characteristically develop their own groupings for filing, indexing/retrieval, retention, storage, etc., of data. A typical electronic document management system allows employees to function within companies’ guidelines by consolidating documents by series, retention period, procedures for storing, retrieving, indexing, and purging documents.

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; it is about having a standardized approach to preserving documents (see Table 1 on slide 11).

Active Description Work with EDMS

Label documents E-mail, HR records, financial, operational, customer services, etc.

X

Convert paper document Label and scan paper-based documents into a digital format

X

Create or receive document

Compose and receive document content from other location.

X

Link document Associate document content with information sources.

X

Extract document Extract documents including the association of that document with other documents.

X

Edit document Add, delete, or modify a document

X

Translate document content (language)

Solidify content in a language other than the source language.

X

Versioning document Create, alter, or received document stamped with updated different version.

X

Transform document content

Solidify document content by transformation text to presentation slides.

X

Table 1

Working Components of an EDM system:

Note. From “A Framework for EDMS/ERMS Integration”, by J. Timothy Sprehe,

2004, Journal of Information Management, 38(6), p. 58.

Implementation Steps:

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 document management system in the daily practice of the ADC Company to go green is to provide standardization in record management.

Conclusion

Using an EDM system for the purpose of storing and retrieving electronic data is easier than retrieving paper documents. It is typical, in an office setting, for one piece of paper to be Xerox at least ten times because that one piece of the paper is use in multiple functions. Moreover, paper can easily be distorted, lost or damaged. EDM system allows records storage, retrieval, and archival in one single location without the benefits of destruction.

References

Barker, 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.