Corporate Lawbreaking and Interactive Compliance: Resolving the Regulation-Deregulation Dichotomy

By Jay A. Sigler; Joseph E. Murphy | Go to book overview

be reduced to some dollar amount), interactive compliance will be discounted as yet another proposal that was interesting in theory, but impracticable or unfeasible in actual practice.

In such a setting it is not enough that interactive compliance be offered as one alternative to the existing system of government regulation. Interactive compliance must be "sold" to the students. An argument based on the ethical underpinnings of compliance and of our system of government regulation will not sell. Instead, the competitive advantages that a cooperative and interactive system can bring must be shown and emphasized. Only then will the competitors who now populate our business schools buy it.


NOTES
1.
Lane and Schaupp ( 1989) found that business students have a different, more cynical view of ethics than do students in liberal arts and engineering schools; in a seemingly inconsistent, but perhaps more disturbing, finding, business students perceived themselves as being more concerned with people, social responsibility, and ethics than they thought successful CEOs were ( Beggs and Lane 1989). This may mean that however skeptical they may be while in school, business students are even more cynical about what it takes to get to the top of the corporate ladder.
2.
It is interesting to note that Dunfee ( 1987) does include "willing compliance with the law" among his "Intermediate Principles of Business Ethics," adding that "one should comply with the spirit of the law, and not take an adversarial approach based upon a strategy of maximizing noncompliance with the law" (403).
3.
Under the Foreign Corrupt Practices Act ( 15 USCA Sec. 78a, 78n, 78dd-1), companies are required to maintain a system of internal control. The purpose of the inclusion of this accounting requirement in a statute designed to inhibit bribery of foreign officials or political parties is to create an audit trail, thereby enabling enforcement agents to trace the payments through the books of the corporation involved.
4.
Dunfee ( 1987) has made a similar argument as to why it may be profitable to be ethical (403).

-139-

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