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The call for improved corporate ethics has been thoroughly embraced by the worlds of business and public policy — so much so that the recent invalidation of the federal sentencing guidelines, which allowed corporations to mitigate their sentences, will not slow the campaign's momentum. Rather, the guidelines' new advisory status should focus companies more on the overriding need to build an ethical culture, and less on rote, process-oriented compliance. This change in focus will underscore the guidelines' core strength: They are more than just legal procedure — they articulate best practices in business ethics, which companies can put to constructive use.
The Booker/Fanfan Decision
On Jan. 12, 2005, the U.S Supreme Court decided United States v. Booker, 543 US ___ ,125 S.Ct. 738; No. 04-104 (Jan.12, 2005) (hereafter Booker/Fanfan), which together struck down the mandatory guidelines. In the criminal justice system, the twin decisions created an earthquake of uncertainty. But in the business world, the decisions should cause barely a tremor. They have inspired much discussion and some hand-wringing, but will have little practical impact on the corporate ethics movement.
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