“Ethical blowback”: the missing piece in the corporate governance puzzle – the risks to a company which fails to understand and respect its social contract

Abstract

Purpose

The purpose of this article is to discuss the risks to a company that fails to understand and respect its social contract.

Design/methodology/approach

The paper provides a viewpoint on the “ethical blowback”.

Findings

The paper argues that two forces that are now influencing corporate governance reform can provoke ethical blowback, namely: Sarbanes‐Oxley style regulatory initiatives; and internal corporate compliance and ethics programs.

Originality/value

The paper provides a viewpoint on the “ethical blowback”.

Citation

Donaldson, T. (2007), "“Ethical blowback”: the missing piece in the corporate governance puzzle – the risks to a company which fails to understand and respect its social contract", Corporate Governance, Vol. 7 No. 4, pp. 534-541. https://doi.org/10.1108/14720700710820614