Can "Focused Deterrence" Produce More Effective Ethics Codes? An Experimental Study. Issue 1 (January 2022)

• Record Type: Journal Article
• Authors: Rorie, Melissa; West, Matthew
• Other Names: Davies Jon guest-editor.; Malik Hanna guest-editor.
• Is Part Of: Journal of white collar and corporate crime. Volume 3:Issue 1(2021)
• Page Start: 33
• Page End: 45
• Publication Date: 2022-01
• Subjects: ethics codes -- white-collar crime -- deterrence -- corporate crime -- compliance programs; White collar crimes -- Periodicals; Commercial crimes -- Periodicals; 364.168
• DOI: 10.1177/2631309X20940664
• Languages: English
• ISSNs: 2631-309X

Abstract

The current study draws from the literature on "direct deterrence" programs as a framework for preventing corporate crime. Direct deterrence programs focus on reducing crime by communicating the likelihood and severity of sanctions to potential offenders. We believe a similar strategy may be useful when designing ethics codes. Ethics codes are the most commonly applied aspect of corporate internal compliance programs, yet evidence supporting their effectiveness is mixed and rigorous evaluation of their impact rare. Here, we employed an experimental design to examine how the content of ethics codes impact ethical decisions. Results suggest that the presence of an ethics code can increase compliance, but that supervisors also play a critical role. Implications for research and internal compliance programs are discussed.