Chapter 10, "Minimizing Corporate and Civil Criminal Liability: Corporate Codes of Conduct" by Frank Seales Jr. and Margaret Spencer, addresses the issues of whether and how corporate codes of conduct should be implemented. The chapter first analyzes the advantages and disadvantages of corporate codes of conduct. This analysis includes a description of the effect of such codes on criminal liability under the federal sentencing guidelines for corporations. The chapter then examines the response of the courts and government agencies to such codes, compliance programs, and other internal policies. These decisions demonstrate the considerations that drive judicial review of compliance programs. It concludes with some practical justifications for corporate codes.
In Chapter 11, "Countering Corporate Misconduct: The Role of Human Resource Management," Serbrenia and Ronald Sims emphasize how human resource management (HRM) can play an important role in countering corporate fraud. The chapter stresses that HRM personnel are an important force in determining whether a company develops an ethical or unethical climate. Thus, there is a need for an increased understanding and emphasis on the role HRM can play in countering corporate fraud and unethical employee behavior. The chapter discusses specific ways in which HRM personnel can assist their organizations in developing organizational cultures that counter corporate misconduct and thus encourage ethical behavior in their employees.