Merchant and Rockness (1994, p. 92) characterize earnings management as "probably the most important ethical issue facing the accounting profession" and provide initial evidence of the ethical judgments of various organizational members. The current study extends their work by examining the extent to which an individual''s ethically-related judgments in response to earnings management activities are associated with the individual''s role.In an experimental study, evening MBA students read three hypothetical scenarios involving a manager engaging in earnings management. The scenarios involved a (...) gain from an operating activity, a gain from an accounting activity, and a loss from an accounting activity. Before reading the cases, however, participants were randomly assigned to one of three roles: a shareholder, another manager from the company who is unfamiliar with the manager in the case, or another manager from the company who is familiar with the manager in the case. Following each case, participants made four ethically related judgments. (shrink)

Organizations are increasingly embedded with consultants and other non-employees who have the opportunity to engage in wrongdoing. However, research exploring the reporting intentions of employees regarding the discovery of wrongdoing by consultants is scant. It is important to examine reporting intentions in this setting given the enhanced presence of consultants in organizations and the fact that wrongdoing by consultants changes a key characteristic of the wrongdoing. Using an experimental approach, the current paper reports the results of a study examining employees' (...) reporting intentions subsequent to their discovery of wrongdoing by a consultant. The results of the study indicate that perceptions about the seriousness of a wrongdoing, personal costs and personal responsibility related to reporting a wrongdoing, and moral-equity judgments are significantly associated with reporting intentions for a normal reporting channel. Only perceptions of seriousness and personal costs are significantly associated for an anonymous reporting channel. Lastly, while personal costs for the anonymous reporting channel were lower than the normal reporting channel, reporting intentions were similar across the two channels. (shrink)

Although the role of fairness in tax compliance has been of increasing interest among the academic and professional tax communities, very little is known about the role of interactional fairness. Interactional fairness refers to the quality of the treatment provided to individuals from authority figures, such as tax authority representatives. We conduct an experiment using US taxpayers to examine the role of interactional fairness on tax compliance intentions, and how detection influences this relation. Taxpayers’ detection salience reflects their perceptions that (...) they will be audited by the tax authority. Using insights from conditional cooperation theory, we predict and find that detection moderates the relation between interactional fairness and tax compliance intentions, such that the effect of interactional fairness on tax compliance intentions diminishes with higher detection. We discuss the implications of our results for tax policy. (shrink)

The Sarbanes–Oxley Act of 2002 requires audit committees of public companies’ boards of directors to install an anonymous reporting channel to assist in deterring and detecting accounting fraud and control weaknesses. While it is generally accepted that the availability of such a reporting channel may reduce the reporting cost of the observer of a questionable act, there is concern that the addition of such a channel may decrease the overall effectiveness compared to a system employing only non-anonymous reporting options. The (...) rationale underlying this concern involves the would-be reporter’s likelihood of reporting, the seriousness with which the organization treats an anonymous report, and the organization’s ability to thoroughly follow-up the report. Thus, we explore the extent to which the availability of an anonymous reporting channel influences intended use of non-anonymous reporting channels. Further, in response to Sarbanes–Oxley and the environment of financial scandals that led to its passage, many firms are strengthening their internal audit departments, and providing them with greater independence from upper management’s direct control. Accordingly, our examination tests whether the intended use of the internal audit department as an internal reporting channel is greater when the internal audit department is of “high” versus “low” quality. Finally, the study investigates intended reporting behavior across three different cases (e.g., settings). Results show that the existence of an anonymous channel does reduce the likelihood of reporting to non-anonymous channels, that generally the internal audit department quality does not affect reporting to non-anonymous channels, and that case-setting affects the type of channel to be used. Implications from the study are discussed. (shrink)

We report the results of a study that examines the association between gender and individuals’ intentions to report fraudulent financial reporting using non-anonymous and anonymous reporting channels. In our experimental study, we examine whether reporting intentions in response to discovering a fraudulent financial reporting act are associated with the participants’ gender, the perpetrator’s gender, and/or the interaction between the participants’ and perpetrator’s gender. We find that female participants’ reporting intentions for an anonymous channel are higher than for male participants; the (...) fraud perpetrator’s gender and the interaction with participants’ gender were not significantly associated with anonymous channel reporting intentions. Neither of the two factors nor the interaction between the two factors was associated with reporting intentions to a non- anonymous reporting channel. Results from an additional analysis indicate that male and female participants differ in the extent to which they judge the reduction in personal costs of an anonymous reporting channel compared to a non-anonymous reporting channel and that the reduction in personal costs mediates the relationship between participant gender and anonymous reporting intentions. (shrink)

Following SOX, financial restatements increased dramatically. Prior research suggests that how investors respond to restatements, particularly those involving fraud, may mitigate or exacerbate damage suffered. We extend both accounting and management research by examining the joint effects of pre-restatement managerial reputation and the announcement of managerial corrective actions in response to a restatement on nonprofessional investors’ judgments. We find that pre-restatement managerial reputation and the announcement of managerial corrective actions jointly influence investors’ managerial fraud prevention assessments, which mediate their trust (...) in management. These trust perceptions in turn affect investors’ investment and CEO retention judgments. Our results have implications for firms that are concerned with lessening the negative consequences associated with issuing a restatement. (shrink)

CEO compensation has received much attention from both academics and regulators. However, academics have given scant attention to understanding judgments about CEO compensation by third parties such as investors. Our study contributes to the ethics literature on CEO compensation by examining whether judgments about CEO compensation are influenced by two aspects of a company’s tone at the top—social ties between the CEO and members of the Executive Compensation Committee and the CEO’s Reputation, particularly for financial reporting and disclosures. Although, stock (...) exchanges such as NASDAQ require ECC members to be independent, CEOs still may have social connections to the ECC. In addition, CEOs develop a reputation for the quality of their company’s financial reporting and disclosures. We expect both CEO Social Ties and CEO Reputation to impact say-on-pay judgments, and that fairness perceptions about the CEO compensation will mediate the relationship. We conduct an experiment to test our hypotheses. In this study, we employ a two by two experimental design where we manipulate CEO Social Ties with members of the ECC and CEO Reputation for the quality of financial reporting disclosures . Participants were MBA students who provided a say-on-pay judgment , and judgments about the fairness of the CEO’s compensation. Results indicate that CEO Social Ties affected participants’ say-on-pay judgments, which were fully mediated by their perceptions about fairness of the CEO’s compensation. Further, the CEO’s Reputation also affected participants’ say-on-pay judgments, which were fully mediated by their perceptions about fairness of the CEO’s compensation. Implications for research and public policy are presented. (shrink)

It has long been recognized that accountants practicing in business settings have a dual role: as employees, they are bound to the organization, and as professionals, they are bound by the profession’s code of ethical conduct : 119–128, 1986). These two roles highlight the need to recognize and consider both the ethical and economic implications of their decisions. Practicing industry accountants are commonly involved in a broad range of their firm’s business practices and decision making, and are increasingly exposed to (...) the commercial aspects of their companies. Also, during their education, they were trained on their professional responsibilities. However, in general, this education was not recent and may not have been reinforced. By contrast, accounting students have been recently and repeatedly exposed to and have knowledge about their professional responsibilities as an accountant, but limited, if any, exposure to the commercial aspects of business. Consequently, our first hypothesis predicts that the ethical sensitivity of practicing industry accountants will be lower than that of accounting students. We find limited support for this hypothesis. Second, we also examine company reward structure and predict that ethical sensitivity will be lower for those in a company with a reward structure narrowly focused only on financial goals as compared to those in a company with a broad reward structure. Third, we predict that the difference in ethical sensitivity levels between those in a company with a narrow reward structure as compared to those in a company with a broad financial reward structure will be higher for practicing industry accountants compared to accounting students. Results from our study generally support these last two predictions. Ethical sensitivity is lower for those in a company with a reward structure narrowly focused only on financial goals as compared to those in a company with a broad reward structure, suggesting that companies may be able to increase ethical awareness in their organizations by including non-financial goals in their reward structures. (shrink)

Recent, well-publicized accounting scandals have shown that the penalties outsiders impose on those found culpable of earnings management can be severe. However, less is known about how colleagues within internal labor markets respond when they believe fellow managers have managed earnings. Designers of responsibility accounting systems need to understand the reputational costs managers impose on one another within internal labor markets. In an experimental study, 159 evening MBA students were asked to assume the role of a manager in a company (...) and respond to a scenario in which another manager (the target manager) has the opportunity to engage in earnings management. Participants provided causal attributions, assessed the morality of the target manager, and indicated whether they would change their judgments about the target manager's reputation. The study manipulated three between-subjects factors: (1) whether the target manager chose to engage in earnings management, (2) whether the company's budgetary control system was rigid or flexible, and (3) whether the target manager's work history was average or above average. We found that causal attributions are affected more by the budgetary systems when the target did not manage earnings than when the manager did. We also found that morality judgments were significantly associated with the target manager's behavior, but not with the budgetary system. In addition, participants' judgments about the target manager's reputation were more strongly associated with morality judgments than with causal attributions. We discuss implications of the role of reputation in management control systems design. (shrink)

An integrated representation of large‐scale space, or cognitive map, colled PLAN, is presented that attempts to address a broader spectrum of issues than has been previously attempted in a single model. Rather than examining way‐finding as a process separate from the rest of cognition, one or the fundamental goals of this work is to examine how the wayfinding process is integrated into general cognition. One result of this approach is that the model is “heads‐up,” or scene‐based, because it takes advantage (...) of the properties of the human visual system and, particularly, the visual system's split into two pathways. The emphasis on the human location or “where” system is new to cognitive mapping and is port of an attempt to synthesize prototype theory, associative networks and location together in a connectionist system. Not all of PLAN is new, however. Many of its parts have analogues in one or another preexisting theory. What makes PLAN unique is integrating the various components into a coherent whole, and the capacity of this resulting system to speak to a wide range of constraints. Our approach emphasizes adaptiveness; thus, our focus on such issues as ease of use and efficiency of learning. The result is a model that has a stronger relationship both to the environment, and to the ways that humans interact with it, compared with previous models. The resulting model is examined in some detail and compared to other systems. (shrink)

The frequency of earnings restatements has been increasing over the last decade. Restating previous earnings erodes perceived trustworthiness and competence of management, giving firms strong incentives to take actions to enhance perceived credibility of future financial reports [Farber, D. B.: 2005, The Accounting Review 80(2), 539–561.]. Using an experimental case, we examine the ability of post-restatement actions taken by a firm to positively influence non-professional investors’ perceptions of management’s financial reporting credibility. Our examination considers credibility judgments following two types of (...) restatements – those resulting from fraud in which the character, ethics, and values of an organization may be called into question [cf. Copeland, Jr., J. E.: 2005, Accounting Horizons 19(1), 35–43.], and those resulting from non-fraud (i.e., aggressive accounting). Based on the information in the experimental case, non-professional investors take the role of potential equity investors and make a judgment about management’s financial reporting credibility after reviewing a set of post-restatement actions taken by a firm. The possible actions include changes in four corporate governance mechanisms (i.e., internal audit function, external audit firm, board of directors, CFO) and a buyback of company stock. Our results provide an important contribution to the literature by demonstrating that among non-professional investors, perceptions of management’s financial reporting credibility are affected both by the post-restatement action taken and the nature of the restatement. These results offer insight into the formation of a key credibility judgment made by non-professional investors following a trust-destroying event, an earnings restatement. (shrink)

This article examines how facial recognition technology reshapes the philosophical debate over the ethics of video surveillance. When video surveillance is augmented with facial recognition, the data collected is no longer anonymous, and the data can be aggregated to produce detailed psychological profiles. I argue that – as this non-anonymous data of people’s mundane activities is collected – unjust risks of harm are imposed upon individuals. In addition, this technology can be used to catalogue all who publicly participate in political, (...) religious, and socially stigmatised activities, and I argue that this would undermine central interests of liberal democracies. I examine the degree to which the interests of individuals and the societal interests of liberal democracies to maintain people’s obscurity while in public coincide with privacy interests, as popularly understood, and conclude that there is a practical need to articulate a novel right to obscurity to protect the interests of liberal democratic societies. (shrink)

The current study is designed to propose and test a model about the ethical reputation of a target manager who must decide whether to engage in earnings management. We employ an experimental approach to examine the potential negative reputation effects within the internal labor market of a firm that occur as a consequence of earnings management. We examine participants’ responses to a hypothetical (target) manager when both the target’s behavior and the corporate incentives were manipulated. Participants assessed how ethical they (...) believed a target manager to be, based on the target’s decision regarding earnings management and the nature of the corporate incentives. Participants also assessed the target’s managerial ability. Participants’ judgments regarding the target’s morality were significantly affected by the target’s behavior, but were not affected by the incentive structure. Ability judgments were significantly and positively related with morality assessments. Further analysis indicates that morality assessments mediate the relationships between the target’s behavior and the participants’ willingness to extend work-related opportunities to the target. Implications of these results for management control systems design and for future research are discussed. (shrink)

The frequency of earnings restatements has been increasing over the last decade. Restating previous earnings erodes perceived trustworthiness and competence of management, giving firms strong incentives to take actions to enhance perceived credibility of future financial reports [Farber, D. 2005, The Accounting Review 80, 539-561.]. Using an experimental case, we examine the ability of post-restatement actions taken by a firm to positively influence nonprofessional investors' perceptions of management's financial reporting credibility. Our examination considers credibility judgments following two types of restatements (...) -those resulting from fraud in which the character, ethics, and values of an organization may be called into question [cf. Copeland, Jr., J. E.: 2005, Accounting Horizons 19, 35-43.], and those resulting from non-fraud. Based on the information in the experimental case, non-professional investors take the role of potential equity investors and make a judgment about management's financial reporting credibility after reviewing a set of postrestatement actions taken by a firm. The possible actions include changes in four corporate governance mechanisms and a buyback of company stock. Our results provide an important contribution to the literature by demonstrating that among non-professional investors, perceptions of management's financial reporting credibility are affected both by the postrestatement action taken and the nature of the restatement. These results offer insight into the formation of a key credibility judgment made by non-professional investors following a trust-destroying event, an earnings restatement. (shrink)

The purpose of this research is to examine the effect of two organizational variables, budget goal difficulty and promotion availability, on employee fraud. Limited research shows that difficult, specific goals result in more unethical behavior than general goals :422–432, 2004). We predict that goal difficulty and promotion availability will interact to affect employee fraud. Specifically, we contend that the availability of promotions will have little, if any, effect on employee fraud under easy goals but have a substantial effect on fraud (...) under extremely difficult goals. To test this prediction, we use an experiment in which participants play the role of production employees. All participants are assigned cost goals and are responsible for reporting costs to the organization. Information asymmetry exists such that the organization is unable to assess whether costs have been reported accurately, and any overstatement of costs directly increases the employee’s compensation at the expense of the organization. The results of our experiment support the prediction, even though the cost goal is not tied to current period compensation. Our results have implications for academics and practitioners concerned with factors that affect fraud in organizations. (shrink)

ABOUT THE BOOK:Hermeneutics, Holography and Indian Idealism is a cross-cultural and interdisciplinary analysis of the notion of projection. Advaita Vedanta informs us that mind is projected `out-there` into the world during perception. Is this notion.

This paper examines the role of management's earnings preannouncements on judgments about its trustworthiness by nonprofessional investors. We predict that management's preannouncement decision and the resulting direction of the earnings surprise influence investors' ethical judgments about management's trustworthiness; these judgments, in turn, are associated with investors' other investment related judgments. We test our predictions in an experiment in which MBA students make investment-related judgments under four different preannouncement strategies. Consistent with our predictions, the results of our study show that managers' (...) preannouncement decisions are significantly associated with investors' evaluations of management's trustworthiness. Specifically, holding the size of the earnings surprise constant, we find that judgments of management's trustworthiness are damaged more following a negative as opposed to a positive earnings surprise, and the release of a preannouncement compared to when management does not issue a preannouncement. Also consistent with our predictions, we find that evaluations of management's trustworthiness are significantly and positively associated with judgments of the attractiveness of the firm's equity as an investment. Based on our findings, we encourage further research to explore whether managers understand the trust implications associated with their preannouncement decisions and the extent to which this understanding influences their disclosure decisions. (shrink)

This paper examines recent arguments by Michael Walzer and Uwe Steinhoff for justifying or excusing indiscriminate terrorism by means of invoking ‘emergency’ circumstances. While both authors claim that the principle of non-combatant immunity can be justifiably overridden under extreme circumstances, it is argued here that neither provides a convincing argument as to when and why the survival of some innocents ought to counterbalance the harms or rights violations of indiscriminate terrorism. A defensible emergency justification for indiscriminate terrorism is proposed and (...) shown to open the door to a broader, non-emergency rationale for conceivably excusing or justifying indiscriminate terrorism. (shrink)

In this paper, I examine the ethics of nonviolent protest when a violent response is either foreseen or intended. One central concern is whether protesters, who foresee a violent response but persist, are provoking the violence and whether they are culpable for any eventual harms. A second concern is whether it is permissible to publicize the violent response for political advantage. I begin by distinguishing between two senses of the term provoke: a normative sense where a provocateur knowingly imposes an (...) unjustified risk of a violent response, and a descriptive sense where the respondent feels provoked. I argue that, when the risk of a violent response is justified, the protesters are not provocateurs but akin to nonculpable, entrapping agents who create an opportunity for the regime to respond with disproportionate violence. The regime’s response can disclose its brutality or criminality and this can be fairly publicized for political advantage. When nonviolent protesters create an unjustified risk of violence either because the injustice they oppose is insufficient to justify the risk of a violent response or because the risked harms are disproportionate with the likely political advantages derived from the protest, they are partially culpable provocateurs. However, I argue these partially culpable provocateurs can still permissibly publicize the disproportionate violence of the regime so as to shape public opinion. (shrink)

The Advaita Vedānta notion of ātman/Brahman presents serious philosophical challenge to this school—namely, it demands that they explain how all can be undivided, unchanging, and pure consciousness, yet appear to be everything but nondual, unchanging, and pure consciousness. The Advaita answer is avidyā, ajñāna. This answer tells us that Brahman does not really change; it is only ignorance that makes it appear to change. This answer has engendered as many questions as it has resolved, and it is possible that they (...) can be boiled down to the following: how can vidyā and avidyā be simultaneous and coterminous? After reviewing the Advaita responses to the debates regarding avidyā which arose within Advaita and between Advaitins and their opponents, traditional Advaita path will be followed by offering an analogy to illuminate this quandary. The strength of this contemporary analogy, based on holography, lies in its ability to illuminate the nature of Brahman as being without parts, without duality, without change; yet holography presents us with images that appear to change and be with parts. (shrink)

The say-on-pay regulation in the Dodd-Frank Act requires publicly-traded U.S. firms to hold a nonbinding, advisory shareholder vote on executive compensation. Advocates claim that SOP voting gives shareholders a mechanism to hold managers and boards more accountable. Critics contend that SOP votes may simplistically reflect shareholders’ reactions to the overall value of CEO compensation or the firm’s net income. However, based on prior research, we contend that market participants’ SOP votes are likely to consider current income attributes. For example, the (...) market punishes firms that do not meet or beat benchmarks such as analyst earnings expectations, and that shareholders scrutinize the quality of the income sources of firms that consistently meet/beat analyst expectations. We thus expect that more shareholders will provide ‘agree’ SOP votes for a firm that consistently meets/beats analyst forecasts and does so when net income does not include nonrecurring gains. Further, we consider whether perceptions about the fairness of CEO compensation play a mediating role in the relationship between the interaction of these two current income attributes and SOP votes. Results from an experiment using evening MBA students as participants indicates that the two current income attributes significantly interact with respect to the percentage of agree SOP votes, and that compensation fairness perceptions fully mediate this relationship. Further, the mediating effect of compensation fairness perceptions is robust to including CEO-level and other determinants found in prior research. We conclude with a discussion of our findings and their implications for public policy and research. (shrink)

In the first section of the article, we examine some recent criticisms of the connectionist enterprise: first, that connectionist models are fundamentally behaviorist in nature (and, therefore, non-cognitive), and second that connectionist models are fundamentally associationist in nature (and, therefore, cognitively weak). We argue that, for a limited class of connectionist models (feed-forward, pattern-associator models), the first criticism is unavoidable. With respect to the second criticism, we propose that connectionist modelsare fundamentally associationist but that this is appropriate for building models (...) of human cognition. However, we do accept the point that there are cognitive capacities for which any purely associative model cannot provide a satisfactory account. The implication that we draw from is this is not that associationist models and mechanisms should be scrapped, but rather that they should be enhanced.In the next section of the article, we identify a set of connectionist approaches which are characterized by “active symbols” — recurrent circuits which are the basis of knowledge representation. We claim that such approaches avoid criticisms of behaviorism and are, in principle, capable of supporting full cognition. In the final section of the article, we speculate at some length about what we believe would be the characteristics of a fully realized active symbol system. This includes both potential problems and possible solutions (for example, mechanisms needed to control activity in a complex recurrent network) as well as the promise of such systems (in particular, the emergence of knowledge structures which would constitute genuine internal models). (shrink)

The Advaita Vedānta notion of ātman/Brahman presents a serious philosophical challenge to this school-namely, it demands that they explain how all (reality) can be undivided, unchanging, and pure consciousness, yet appear to be everything but nondual, unchanging, and pure consciousness. The Advaita answer is avidyā, ajāna (ignorance). This answer tells us that Brahman does not really change; it is only ignorance that makes it appear to change. This answer has engendered as many questions as it has resolved, and it is (...) possible that they can be boiled down to the following: how can vidyā and avidyā be simultaneous and coterminous? After reviewing the Advaita responses to the debates regarding avidyā, which arose within Advaita and between Advaitins and their opponents, a traditional Advaita path will be followed by offering an analogy to illuminate this quandary. The strength of this contemporary analogy, based on holography, lies in its ability to illuminate the nature of Brahman as being without parts, without duality, without change; yet holography presents us with images that appear to change and be with parts. (shrink)

Rachlin's thought-provoking analysis could be strengthened by greater openness to evolutionary interpretation and the use of the directed attention concept as a component of self-control. His contribution to the understanding of prosocial behavior would also benefit from abandoning the traditional (and excessively restrictive) definition of altruism.

In order to address whether states can ever have the proper authority to militarily punish other international agents, I examine three attempts to justify punitive warfare from Augustine, Grotius and Locke for their relevance to both our contemporary international legal and political order and our contemporary security threats from sporadic terrorist or militant violence. Once a plausible model for a state’s valid authority to punish international agents is found, I will consider what punitive aims it can support and what challenges (...) such punitive warfare would have in satisfying the remaining jus ad bellum conditions. (shrink)

This paper criticizes three assumptions regarding terrorism and the agents who carry it out: 1) terrorists are always indiscriminate in their targeting, 2) terrorism is never effective in combating oppression, and 3) terrorists never participate in fair negotiations as they merely wish to switch places with their oppressors. By criticizing these three prejudices against terrorism, the paper does not attempt to justify or excuse terrorism generally nor in the specific case of Sri Lanka which is examined. Instead, it creates the (...) necessary room for such justifications or excuses to be critically appraised by dismantling the popular myths surrounding terrorism. (shrink)

Perceptual learning mechanisms derived from Hebb's theory of cell assemblies can generate prototypic representations capable of extending the representational power of TEC (Theory of Event Coding) event codes. The extended capability includes categorization that accommodates “family resemblances” and problem solving that uses cognitive maps.

Amit's efforts to provide stronger theoretical and empirical support for Hebb's cell-assembly concept is admirable, but we have serious reservations about the perspective presented in the target article. For Hebb, the cell assembly was a building block; by contrast, the framework proposed here eschews the need to fit the assembly into a broader picture of its function.

Pulvermüller's work in extending Hebb's theory into the realm of language is exciting. However, we feel that what he characterizes as a single cell assembly is actually a set of cooperating cell assemblies that form parts of larger cognitive structures. These larger structures account more easily for a variety of phenomena, including the psycholinguistic.

Page's target article makes a good case for the strength of localist models. This can be characterized as an issue of where new information is integrated with respect to existing knowledge structures. We extend the analysis by discussing the dimension of when this integration takes place, the implications, and how they guide us in the creation of cognitive models.

Previous accounting ethics research berates auditors for ethical lapses that contribute to the failure of Andersen (e.g., Duska, R.: 2005, Journal of Business Ethics 57, 17–29; Staubus, G.: 2005, Journal of Business Ethics 57, 5–15; however, some of the blame must also fall on regulatory and professional bodies that exist to mitigate auditors’ ethical lapses. In this paper, we consider the ethical and economic context that existed and facilitated Andersen’s failure. Our analysis is grounded in Akerlof’s (1970, Quarterly Journal of (...) Economics August, 488–500) Theory of the Market for Lemons and we characterize the market for audit reports as a market for lemons. Consistent with Akerlof’s model, we consider the appropriateness of the countervailing mechanisms that existed at the time of Andersen’s demise that appeared to have effectively failed in counteracting Andersen’s ethical shortcomings. Finally, we assess the appropriateness of the remedies proposed by the Sarbanes–Oxley Act of 2002 (SOA) to ensure that similar ethical lapses will not occur in the future. Our analysis indicates that the SOA regulatory reforms should counteract some of the necessary conditions of the Lemons Model, and thereby mitigate the likelihood of audit failures. However, we contend that the effectiveness of the SOA critically depends upon the focus and attention of the␣Public Companies Accounting Oversight Board (PCAOB) towards assessing the ethical climates of public accounting firms. Assessments by the PCAOB of public accounting firm’s ethical climate are needed to sufficiently ensure that public accounting firms effectively promote and maintain audit quality in situations where unconscious bias or economic incentives may erode the public accounting firm’s independence. (shrink)

Emerging from the growing swell of recent literature concerning Kant's practical philosophy, one interpretation of his procedure for testing maxims has crested above others. The influential interpretation to which I refer believes that the categorical imperative guides a procedure that finds maxims impermissible when they cannot be universalized without producing a 'practical' contradiction. As a major proponent of the practical contradiction interpretation, Christine Korsgaard claims that, while there is textual support for this point of view, she is more concerned with (...) developing a defensible interpretation of maxim testing for a ‘Kantian’ system of morality. Accordingly, one cannot simply attempt to evaluate such a theory solely by considering its various incongruities with Kant's specific claims and arguments. Instead, my evaluation of the practical contradiction interpretation will examine: whether it is a procedure that is applicable to a full range of maxims; whether it maintains a distinct advantage over the alternative readings; and whether it is an internally coherent and consistent model for testing maxims. I propose, here, that regardless of the practical contradiction test's many advantages, it fails with regard to all three of these questions. (shrink)

In this paper, a two-fold strategy is carried out for gaining conceptual clarity in response to the question: What is terrorism? The first stage is to defend a broad working definition of terrorism that emphasizes the instrumental employment of terror or fear to obtain any number of possible ends. As proposed in this paper, Terrorism is an act or threat of violence to persons or property that elicits terror, fear, or anxiety regarding the security of human life or fundamental rights (...) and that functions as an instrument to obtain further ends. This instrumentality relies upon either an explicit or implicit threat of separate acts of future violence. It is argued that such a functionalist approach to defining terrorism captures the core qualities that unite the broad family of both political and nonpolitical terrorist actions. At the same time, the proposed definition avoids the problems associated with other approaches that either focus upon the terrorist’s ‘unconventional’ tactics, or the ‘innocence’ of their targets, or their coercive intentions. The breadth of the proposed definition allows for the more nuanced typological analysis in the second stage. The typology is primarily an analysis of the modes of terrorism’s instrumentality. Thus, the broad phenomenon of terrorism is divided according to factors of targets, the degree of force employed, agency, and the geographic context of the action. It is only by drawing out the diverse types of terrorism that the projects of morally evaluating terrorism and formulating a just response to terrorism can take place in a concrete and meaningful way. (shrink)

It is widely acknowledged that Isaiah Berlin’s seminal essay “Two Concepts of Liberty” has to a large extent set the tone and determined the content of the debates within political philosophy in the English-speaking world. Berlin maintains that the conceptual and institutional history of liberty can be understood in terms of the various responses to the logically distinct questions: “Who governs me?” and “How far does government interfere with me?”. In Berlin’s first question, the salient issue is whether the valid (...) authority to positively rule an individual resides within the individual herself or in some external person, social class, institution, empirical circumstance, or tradition. In contrast with the personal freedom to direct oneself, the second issue is concerned with liberating the individual from the coercion of others, especially the government, by limiting authority as such. Berlin dedicates much of his essay to demonstrating that the positive and negative concepts of liberty are not merely two sides of the same coin; rather, he argues that in human psychology and history these mark “two profoundly divergent and irreconcilable attitudes to the ends of life”. According to Berlin’s line of reasoning, to perceive the personal authority to rule oneself as one’s primary end requires a sacrifice of one’s negative liberty. Reciprocally, to make the limitation of authority and coercion in general one’s highest end demands that one relinquish some positive freedom. (shrink)

It is widely acknowledged that Isaiah Berlin’s seminal essay “Two Concepts of Liberty” has to a large extent set the tone and determined the content of the debates within political philosophy in the English-speaking world. Berlin maintains that the conceptual and institutional history of liberty can be understood in terms of the various responses to the logically distinct questions: “Who governs me?” and “How far does government interfere with me?”. In Berlin’s first question, the salient issue is whether the valid (...) authority to positively rule an individual resides within the individual herself or in some external person, social class, institution, empirical circumstance, or tradition. In contrast with the personal freedom to direct oneself, the second issue is concerned with liberating the individual from the coercion of others, especially the government, by limiting authority as such. Berlin dedicates much of his essay to demonstrating that the positive and negative concepts of liberty are not merely two sides of the same coin; rather, he argues that in human psychology and history these mark “two profoundly divergent and irreconcilable attitudes to the ends of life”. According to Berlin’s line of reasoning, to perceive the personal authority to rule oneself as one’s primary end requires a sacrifice of one’s negative liberty. Reciprocally, to make the limitation of authority and coercion in general one’s highest end demands that one relinquish some positive freedom. (shrink)

Abstract Daniel H. H. Ingalls referred to Gaudap?da's M?nd?kya K?rik?, a very early Advaita text, as ? ... the most puzzling perhaps, of all Sanskrit philosophical texts?. This article shows that some of the philosophical quandaries associated with this text are the result of inappropriately imposing a graphic and prose model of textuality upon a text composed in the k?rik? (memorial verse) genre and in an oral cultural context. Developing a model of textuality consistent with the literary genre and cultural (...) context, the article is not only able to resolve some of the philosophical problems associated with the text, but also raises the possibility that this inappropriate hermeneutical process has contributed to mislabelling Gaudap?da as an idealist. (shrink)