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In Trapped, when acting ethically is against the law, a book published recently by the Cato Institute,

Georgetown University Professor and Cato Institute fellow John Hazenas

describes the difficulty faced by corporate

executives when criminal investigations pit legal compliance against ethical behavior.

What is the nature of the dilemma and how can it be resolved?

Professor Haznes is here with a few ideas.

How can a business person get in trouble for behaving ethically?

Business people can get their corporations in a lot of trouble for behaving ethically.

Some examples of what would be considered ethical business behavior would be,

respecting the privacy of employees and not spying on them and monitoring all of their behaviors.

Honoring promises of confidentiality, if you ask them to report unethical behavior through

an employee hotline or give information to corporate counsel under attorney-client privilege,

you should keep the information confidential.

Not punishing or taking adverse action against employees

in the

wrongdoing is another example of ethical behavior.

If an employee should be indicted and try to defend himself,

a corporation may want to advance the legal fees

and help the person put on a defense.

...