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Spring 2006
ISSN 0890-913X
Volume 22, Number 2

Unethical Compliance and the Non Sequitur of Academic Business Ethics

John Hasnas, Georgetown University
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JournalofPrivateEnterprise,VolumeXXI,Number2,Spring2006UnethicalComplianceandtheNonSequiturofAcademicBusinessEthicsJohnHasnasGeorgetownUniversityWeliveinapost-Enronworld.ThecorporatescandalsthatrockedAmericanbusinessoverthepastfouryearshavebroughtrenewedattentiontotheimportanceofingrainingtheprinciplesofbusinessethicsintothecorporateenvironment.There.Ilovebeginninganarticlewithavacuousbromide.Andindoingso,Iactinkeepingwiththevastmajorityofpost-EnronbusinessethicsarticleswhichinvariablybeginwithsuchaproclamationandthenadvancevariousreformstocorporategovernanceintendedtopreventthenextEnron.Thus,wehearproposalstoencouragewhistleblowingbypromisingconfidentialityandsettingupombudsmenorethicsofficerstowhomemployeescananonymouslyreporttheirsuspicions;toinstituteprogramsoforganizationaljusticedesignedtoraisetheleveloftrustbetweenemployeesandmanagement;toprovidejunioremployeesledintowrongdoingbycorruptseniorcorporateofficialswithethicalmentorswhocanhelpthemgetbackontherightpath,andtoundertakerigorousprogramsofethicalself-assessmenttodetectandrectifyanypotentialunethicalorillegalconductwithinthefirm.AdherencetosuchreformsisbeingurgeduponincipientMBAsinbusinessschoolsthroughoutthenationaseffectivemeansforkeepingtheirfuturefirmsfreeoflegalentanglements.TheproblemisthatifournovitiateMBAstakethesecallsforreformtoheartandactuallyputthemintoeffect,theywillnotonlyincreasethechancesoftheirfirmsbeingindicted,whichinitselfcanbeacorporatedeathsentence,butalsogreatlymagnifythefinancialpenaltythefirmmayincurshoulditbeconvictedofacriminaloffense.Ratherthanpreventone'sfirmfrombecomingthenextEnron,theseproposalsmakeitJohnHasnas87
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