from its corporate code would be proportionate to the effort invested in its compliance program.
Our legal system metes out civil and criminal punishment to corporations "to encourage diligent supervision of corporate personnel by managerial employees" ( American Law Institute 1985, sec. 2.07, comment 6). Corporate codes of conduct are an important means of establishing supervision. Courts have displayed, and should continue to display, an increased willingness to weigh effective compliance efforts when assessing corporate criminal liability. Few decisions, however, directly address the impact of corporate codes. Although the use of such codes is widespread, their legal effect thus remains an unanswered question. We have proposed a standard that would create an incentive for the development of effective compliance programs. Resolving the current uncertainty shrouding the effect of corporate codes would substantially foster effective self-regulation.