A nonprofit organization called the Preserve Your Hair-Itage Foundation is committed to funding medical research projects aimed at developing a vaccine for male-pattern baldness. The organization believes that its contributions over the long run will be 20% higher if it institutes a code of conduct, an antiretaliation whistleblower policy, and an audit committee comprised of well-regarded financial executives. The CEO of this organization estimates that it will have to spend 5% of its annual revenues to maintain these policies. Some members of the organization's Board of Directors oppose spending a higher percentage of the organization's donation revenue on overhead.
a. Is this organization required to adopt these new policies under SOX?
b. Should it adopt these new policies?