IJMB Journal – Abstracts
International Journal of Management and Business
IJMB Volume III, Issue 2
Illegal Corporate Behavior: Analyzing the Effectiveness of the 2002 Sarbanes-Oxley Act
Brian K. Harte
College of Business and Liberal Arts, State University of New York at Canton, Canton, NY 13617.
This research examined the effects of organizational environmental factors on firms’ illegal corporate behavior, and also the ability of the Sarbanes-Oxley Act of 2002 to moderate the relationship between prior violations committed and future illegal corporate behavior. Corporate Socially Responsible (CSR) behavior within business organizations was also examined to determine its relevance in predicting illegal corporate behavior. Moreover, this research provided an organizational level, five year pre and post, historical analysis of legal behavior across Fortune 500 firms. Finally, this research aimed to determine if antecedents to illegal corporate behavior can be identified and if the Sarbanes-Oxley Act of 2002 can be an effective legislative tool impacting firm behaviors. The Sarbanes-Oxley Act itself was analyzed as an event. This research examined Baucus and Near’s (1991) model of the illegal and corporate behavior process to test its ability to predict illegal behavior within historically corrupt industries. Moreover, CSR as an embedded theme within specific firms, and its implications toward both ethical and legal firm practices, was examined.
Keywords: Corporate social responsibility, internal controls, Sarbanes-Oxley Act, illegal corporate behavior, corporate corruption.