This paper discusses the vast continuum between the letter of the law (legality) and the spirit of the law (ethics or morality). Further, the authors review the fiduciary duties owed by the firm to its various publics. These aspects must be considered in developing a corporate code of ethics. The underlying qualitative characteristics of a code include clarity, comprehensiveness and enforceability. While ethics is indigenous to a society, every code of ethics will necessarily reflect the corporate culture from which that (...) code stems and be responsive to the innumerable situations for which it was created. Several examples have been provided to illustrate the ease of applicability of these concepts. (shrink)

The article identifies the challenges that multinational corporations (MNCs) from the developed world face in sub-Saharan Africa and examines the direct foreign-investment and development interests of the region. In light of these challenges and interests, it also explores answers to the question What is to be done?The occurrence of MNCs' operations in culturally pluralistic societies suggest that they use, as the basis for a corporation-formulated regional code of conduct, a value-based corporate social policy process. That process should embody utilitarian and (...) situation ethics in the exercise of MNCs' prima facie operations and of their responsibilities to society. For the African normative environment, the appeal of this approach is substantiated by the notion that both utilitarian and situation ethics are at once consistent with the region's investment codes, development interests, and value systems. But more than that, utilitarian and situation ethics are consistent with corporate social policy process and can assist MNCs to meet effectively their social responsibilities by helping them reverse the economic stagnation of most of the continent. (shrink)

The paper explores the promise of ethical codes as a means to control unethical behavior in business. After a review of arguments for ethical codes from outside the business system, the paper outlines the arguments for codes from inside the business system at the level of the industry, firm and individual executive.The paper then discusses the problems of code design — the dilemma between specific practices and general precepts — and offers a model for a thoroughgoing code. This is followed (...) by a discussion of the problems of promulgation and code enforcement. (shrink)

Professions are granted autonomy by society, to regulate their own affairs. In return for the economic benefits autonomy grants to professions, society expects professions to act in a socially responsible manner. This paper presents a game-theoretic analysis of the relationship between society and professions, which shows that the relationship is unstable in the face of opportunities for professions to renege on the social contract. It also shows how periodic controversies regarding the degree to which professionals act in the public interest (...) are expected to occur periodically, and how they are resolved. (shrink)

Whatever ethnic, religious, or other cultural boundaries may have evolved through history, a global corporate culture is increasingly subsuming these traditional divisions. Multinational corporations, internationally linked securities markets, and omnipresent communication networks characterize this global corporate culture. The dynamics of corporate culture centres on the intricate web of contractual relations between stakeholders. This study addresses the question of how these stakeholder contracts can be most efficiently enforced. Three alternative contractual enforcement mechanisms are identified: the legal system, a generally accepted moral (...) code, and stakeholders' desire to build and maintain reputations. Each alternative is critically evaluated and conclusions are drawn as to the relative feasibility and desirability of each enforcement mechanism. (shrink)

This paper explores three questions: (1) Why should Certified Public Accountants (CPAs), as a group, adhere to their code of ethics? (2) Why should an individual CPA adhere to the code? (3) Of what significance are the answers to these questions in regards to possible changes in the accounting curriculum and the CPA profession's present concern for self-regulation through quality control reviews? The paper concludes that all college accounting majors should be required to take an ethics course and that the (...) current quality review program should be mandatory, not voluntary. (shrink)