While the focus on business ethics is increasing in business school curricula, there has been little systematic scholarly research on the forces which bring about ethical behavior. This article is intended as a first step toward that research by creating a catalogue of hypotheses concerning the efficacy of corporate codes of ethics. The hypotheses are drawn from studies of compliance with law and court decisions and theories of legitimacy, authority, public policy making and individual behavior. Hypotheses are proposed based on (...) the structure of the organization, the source of the code of ethics within the organization, the content of the code, sanctions for noncompliance, protections for refusal to engage in unethical behavior, and rewards for compliance. (shrink)

The UK accountancy industry has traded upon its professional status as a means of expanding and legitimating its activities. Extensive appeals are made to ethical codes and disciplinary arrangements as part of its claim to professional status. This study examines some recent events relating to audit failures and alleged unprofessional conduct by accountancy firms and their partners in the UK with a view to assessing the validity of the claims to professional status. It concludes that the rhetoric of the claims (...) is belied by the failure/inability of the professional accountancy bodies to take effective action against the offending firms or their partners. (shrink)