Corporate Culpability and the Limits of Law

William S. Laufer

Business Ethics Quarterly, 1996, vol. 6, issue 3, 311-324

Abstract: Ethicists and legal theorists have proposed models of corporate culpability that shift the standard of guilt determination from vicarious attribution of individual action and intention to an assessment of culture, policies, as well as organizational action and inaction. This paper briefly reviews four prominent models of corporate culpability, arguing that each makes claims that extend well beyond the limits of existing law. As an alternative to these models, a constructive corporate fault is described that relies on both objective and subjective reasonableness judgments. The paper concludes with a consideration of constructive corporate fault in relation to an Accountability model of corporate liability.

Date: 1996
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