A Business Ethics Perspective on Sarbanes-Oxley and the Organizational Sentencing Guidelines (PDF) begins with an examination of the individual decision-makers within a corporation and analyzes their intentions and behaviors under the "Theory of Planned Behavior," said University of Michigan researcher and author David Hess.

The article then examines the ability of the organization to influence the employees' intentions and behaviors through codes of ethics and compliance programs, and finds growing support for the usefulness of integrity-based compliance programs.

Finally, the article considers how the Sarbanes-Oxley legislation and Organizational Sentencing Guidelines (OSG) modifications influence corporations to adopt compliance programs and to proactively manage their organizational cultures in a way that improves the ethical behavior of their employees.

To stem fraudulent practices, Hess and his colleagues recommend firms adopt integrity-based compiance programs, utilizing "hardware mechanisms required by Sarbanes-0xley, SEC implementing rules, and the OSG." They also recommend that the government place pressure on firms to adopt those practices.

"Although media attention on the scandals leading up to Sarbanes-Oxley was focused primarily on the Ken Lays, Jeff Skillings and Andrew Fastows of the 'C-Suite,' a wide variety of employees at all levels of the firm participated in, or were at least aware of, the fraudulent activities that permeated their corporation," the researchers conclude.

Source: Michigan Law Review, 2007;105(8):1781-1816). To read the full report: http://www.michiganlawreview.org/archive/105/8/hess.pdf