Ethics and corporate governance: banking on scandal Online publication date: Thu, 30-Mar-2006
by Justin O'Brien
International Journal of Business Governance and Ethics (IJBGE), Vol. 2, No. 1/2, 2006
Abstract: The forced introduction of compliance programmes has become an integral component of regulatory enforcement strategies in the United States. They are designed to limit corporate malfeasance and misfeasance. Their use has been extended far beyond generic codes of conduct introduced to minimise corporate liability from punitive federal sentencing guidelines. It is now a federal requirement for publicly listed corporations to have a code of ethics. Any derogation must be reported to the Securities and Exchange Commission. This paper suggests that the institutionalisation of compliance in itself represents a major problem. This is because it privileges a transactional approach to ethics in which form replaces substance. The argument is developed by examining the ethical problems facing Citigroup, one of the largest financial conglomerates in the world. Despite having a code that far exceeds the industry standard, it has failed to protect the corporation from major ethical failures.
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Business Governance and Ethics (IJBGE):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email subs@inderscience.com
Our Blog 
Follow us on Twitter 
Visit us on Facebook