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Business Ethics: Law As A Determinant of Business Conduct

Author

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  • Vincent Di Lorenzo

Abstract

The Principles of Corporate Governance require that business conduct conform to the law. In recent years, news reports of business misconduct have cast doubt on a conclusion that conformity is the prevalent practice. This article explores the influence of law on business conduct by comparing the law’s requirements and purposes with actual business conduct in the market. Specifically, it explores whether certain legal regimes are more effective than others in inducing greater commitment to legal compliance by corporate actors. The conclusion drawn is that the prevalent legal regime – a vague common law or legislative mandate – is typically associated with corporate conduct that evades or ignores the law’s mandate or its underlying purpose. Copyright Springer 2007

Suggested Citation

  • Vincent Di Lorenzo, 2007. "Business Ethics: Law As A Determinant of Business Conduct," Journal of Business Ethics, Springer, vol. 71(3), pages 275-299, March.
    • Handle: RePEc:kap:jbuset:v:71:y:2007:i:3:p:275-299
    DOI: 10.1007/s10551-006-9139-9
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    Citations

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    Cited by:

    1. Maria Halter & Maria Arruda, 2009. "Inverting the Pyramid of Values? Trends in Less-Developed Countries," Journal of Business Ethics, Springer, vol. 90(3), pages 267-275, December.
    2. Ivan Bozhikin & Nikolay Dentchev, 2018. "Discovering a Wilderness of Regulatory Mechanisms for Corporate Social Responsibility: Literature Review," Economic Alternatives, University of National and World Economy, Sofia, Bulgaria, issue 2, pages 145-174, June.
    3. Rui Lu & Wenxuan Hou & Henry Oppenheimer & Ting Zhang, 2018. "The Integrity of Financial Analysts: Evidence from Asymmetric Responses to Earnings Surprises," Journal of Business Ethics, Springer, vol. 151(3), pages 761-783, September.
    4. Maria Halter & Maria Arruda & Ralph Halter, 2009. "Transparency to Reduce Corruption?," Journal of Business Ethics, Springer, vol. 84(3), pages 373-385, February.
    5. Mark Blodgett, 2011. "Substantive Ethics: Integrating Law and Ethics in Corporate Ethics Programs," Journal of Business Ethics, Springer, vol. 99(1), pages 39-48, February.
    6. Victoria Crittenden & Richard Hanna & Robert Peterson, 2009. "Business students’ attitudes toward unethical behavior: A multi-country comparison," Marketing Letters, Springer, vol. 20(1), pages 1-14, March.

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