Governance, compliance and legal enforcement: evaluating a recent Irish initiative

摘要

Purpose - The objective of this paper is to present an initial evaluation of recent Irish legislation in the area of corporate governance. Design/methodology/approach - The background to the introduction of the 2001 Company Law Enforcement Act, establishing the Office of the Director of Corporate Enforcement (ODCE), and the Companies (Auditing & Accounting) Act of 2003, establishing the Irish Auditing and Accounting Supervisory Authority (IAASA), is first outlined. Some empirical evidence is then presented on how such initiatives are perceived by Irish accountants, auditors and directors. Findings - The tentative conclusion reached is that these regulatory and legislative changes, particularly the active stance of the ODCE, are contributing positively towards creating a compliance culture among Irish directors and their professional accounting advisers. The most striking aspect of the IAASA is its mere existence at a regulatory level over the main professional bodies for the first time in the history of the Irish state. Research limitations/implications - Law mediates the relationship between the steering media of economics and politics - and the lifeworlds of accountants, auditors and company directors. This relationship is contextually complex and further research on this institutionalisation process may lead to further insights emerging. Practical implications - Legislation, if supported with the requisite resources and institutions, can positively impact on business culture through influencing the behaviour of key actors. Originality/value - This paper is one of the first evaluations of recent Irish responses to enhancing the integrity of its business culture.