David Bourget (Western Ontario)
David Chalmers (ANU, NYU)
Rafael De Clercq
Ezio Di Nucci
Jack Alan Reynolds
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Journal of Business Ethics 88 (4):765 - 780 (2009)
High-profile corporate scandals earlier in this decade provoked outrage and legislative action; however, corporate executive-level ethical lapses continue to come to light. This article examines the work of Professor Dunfee and his coauthors on corruption, ethical leadership, and social contracts theory, and relates that literature to corrupt activities by corporate executives. Corruption is defined broadly to encompass executive self-dealing, which harms their firms. The specific example of stock options backdating is used to show the harmful impact on shareholders and the lack of managerial integrity though consequentialist, deontological, and legal analysis, as well as a critique of the practice using social contracts principles. Ultimately, this article utilizes the insights of Dunfee and his coauthors, and the lessons from the backdating example, to propose a framework aimed at improving corporate governance and preventing future executive corruption. The framework includes a strategy of identification and prevention, employing detection and eradication mechanisms, and institutional learning from past instances of corporate corruption
|Keywords||corruption corporate governance stock options backdating executive and management ethics private corruption fiduciary duty|
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References found in this work BETA
Mark S. Schwartz, Thomas W. Dunfee & Michael J. Kline (2005). Tone at the Top: An Ethics Code for Directors? [REVIEW] Journal of Business Ethics 58 (1-3):79 - 100.
Michael Schwartz (2005). What Gewirth is Worth at the Department Store. Journal of Business Ethics 58 (1-3):27 - 35.
Antonio Argandoña (2003). Private-to-Private Corruption. Journal of Business Ethics 47 (3):253 - 267.
Timothy L. Fort (2001). Ethics and Governance: Business as Mediating Institution. Oxford University Press.
Citations of this work BETA
Tobias Karmann, René Mauer, Tessa C. Flatten & Malte Brettel (2016). Entrepreneurial Orientation and Corruption. Journal of Business Ethics 133 (2):223-234.
Edmund F. Byrne (2014). Towards Enforceable Bans on Illicit Businesses: From Moral Relativism to Human Rights. Journal of Business Ethics 119 (1):119-130.
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