Leonard J. Brooks

Corporate codes of ethics

The majority of North American corporations awakened to the need for their own ethical guidelines during the late 1970s and early 1980s, even though modern corporations are subject to a surprising multiplicity of external codes of ethics or conduct. This paper provides an understanding of both internal and external codes through a discussion of the factors behind the development of the codes, an analysis of internal codes and an identification of problems with them.

Sustainability Auditing and Reporting: The Canadian Experience

This paper reviews the experience of 174 of Canadas largest 1500 public and private sector corporations which have begun to incorporate sustainable development management and reporting as part of their operations. Answers are provided to three main questions: Why have they implemented this initiative? What progress has been made in terms of sustainability audit practice – frequency, focus, organization of the audit team –, internal communication, and external reporting? And where has, and will the leadership for the sustainability audit movement come from as why? Sustainable development auditing and reporting in Canada is voluntary. Practice varies from an elementary level to a sophisticated integrated assessment of social, environmental, labour, sourcing and trading, and governance issues. The depth of practice and experience in this area depends on several factors, including: corporate commitment, the degree of public perception of sector-wide environmental issues, exposure to legal liability, and the extent of dialogue and transparency associated with the auditing process. Differences of opinion about accounting and auditing standards as well as whether all, or parts of, audits should be independent are explored. The sources of data used for this paper include the EthicScan Corporate 1500 DataBase, The Corporate Ethics Monitor, various reports prepared by EthicScan Canada, and the consultancies of both authors.

Corporate ethical performance: Trends, forecasts and outlooks

Executives, professionals, educators and labour leaders are requesting an update on corporate ethical trends. This article presents an examination of why the interest in corporate ethics is growing both in society and in corporations. An analysis follows of how corporations are responding to this interest, and of how that response might be enhanced through improved second-generation codes of ethical performance.

Ethical codes of conduct: Deficient in guidance for the Canadian accounting profession

Current trends toward increased pace, more complex substance and lower tolerance of error have caused the financial marketplace to rely more heavily on the integrity of financial data and, therefore, of those who prepare the financial statements. At the same time, these trends place higher challenges before professional accountants and it is essential that they have excellent ethical guidance to live up to modern expectations. However, in view of the current codes of conduct, an accountant may not have a clear understanding of what priority of interests to satisfy, who can be consulted for advice, to whom to report misdeeds, what protection is offered a ‘right-doer’ and what sanction will be forthcoming for ‘doing wrong’. Possible solutions are offered to these problems in ways that ought to strengthen the accounting profession and prevent unscrupulous companies from taking advantage of both members of the profession and the unsuspecting public. To provide the appropriate quality of service to society in the future, the Canadian accounting profession should offer its members the improved guidance and enhanced mechanisms for confidential consultation, assistance and protection outlined herein.

Business Ethics in Canada: Distinctiveness and Directions

This article examines the pressures and players that have shaped business ethics in Canadian corporations, and reports on the status of Canadian corporate social performance in 1995. Business in Canada has not been subject, up to 1996, to a powerful national institutional framework such as the US Securities and Exchange Commission and the Foreign Corrupt Practices Act. Consequently, business ethics in Canada have developed primarily in response to broader socio-political and socio-economic factors than in the US, and will probably continue to do so. Interestingly, the issues, policies and practices developed in Canada may provide insights for US corporations as they respond to broadened pressures. Business ethics in Canada, on the other hand, will benefit increasingly from the US experience as pressures grow for national regulation and statutes governing corruption.

CAP Forum on Forensic Accounting in the Post-Enron World: Education for Investigative and Forensic Accounting/FORMATION ET JURICOMPTABILITÉ*

Recent financial scandals have raised the awareness that accountants should be alert to potential fraud and other economic disputes and can provide significant assistance in preventing, investigating, and resolving such matters. Forensic accountants provide these services with knowledge of court requirements and proceedings so that effective legal action is possible, even though most actions are concluded without the involvement of the courts. Although forensic accounting was growing in importance even before Enron and the Sarbanes-Oxley Act, the ensuing tightening of the securities regulations in both Canada and the United States triggered recognition that accounting students and professionals need a fuller understanding of fraud and other economic crimes, and how to find, prevent, and resolve them, as well as the career choices that could be involved. While some of this material is covered in auditing texts and courses, emerging expectations will require the enhancement and restructuring of forensic accounting education within university programs, and will encourage more interest in graduate specialist professional designations. This paper has two objectives: to offer insights into the design and delivery of forensic accounting programs, and into the availability of professional programs; and to provide some exploratory evidence on the type of services currently rendered by investigative and forensic accountants in Canada.