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Stopping Corporate Fraud
Stopping Corporate Fraud Arguing that complexity is the enemy of good corporate governance, Joseph Grundfest, professor of law and business at Stanford University, suggested that the regulations mandated by the Sarbanes Oxley Act of 2002 were too complex to be effective in avoiding business scandals like those of the past decade. Speaking before the Business and Organizational Ethics Partnership of the Markkula Center for Applied Ethics, the former SEC Commissioner said there was a simple, two-word explanation for what went wrong at companies such as Enron: Winona Ryder. The behavior of the actress, who was sentenced to three years probation and community service for shoplifting, is easily explained, Grundfest said, as "a version of a cost-benefit analysis." According to Grundfest, Ryder certainly understood that theft was both morally wrong and against the law.

Full Article: http://www.scu.edu/ethics/publications/ethicalperspectives/corporate_fraud.html


2006 Ethics-Governance.com