"RELUCTANT GUARDIANS: THE MORAL RESPONSIBILITY OF GATEKEEPERS"
October 2007: Fraud Conference Presentation by John R. Boatright
SYNOPSIS
What is the responsibility of intermediaries to act as gatekeepers?
Intermediaries, such as accountants, lawyers, and bankers are gatekeepers, which are parties whose cooperation is necessary for corporations to function and who, by withholding cooperation, are able to prevent significant corporate misconduct. The recent scandals at Enron and other corporations were due, in part, to failures by gatekeeper institutions. However, intermediaries exist primarily to provide for-fee services and not specifically to detect and deter misconduct.
TOPICS
This intriguing article by John R. Boatright, Ph.D. and Professor of Business Ethics at Loyola University of Chicago, argues that the appropriate moral, as well, as legal, principle for justifying responsibility in a gatekeeper role is cost effectiveness.
Conclusions are reached by means of a hypothetical exercise called the investor's bargain in which investors - who bear the costs and receive the benefits of intermediaries' gatekeeper role - are asked to choose the best means of protecting their interests.
ARTICLE
"Reluctant Guardians: The Moral Responsibility of Gatekeepers"