The Individual Rights ethical model acknowledges
duties owed to others and incorporates the concept of
obligations to stakeholders articulated by a variety of
scholars (Carroll and Buchholtz, 2003; Donaldson
and Dunfee, 1999). Donaldson and Dunfee (1999)
explained that the duty of those who govern is to
honor an implied social contract that incorporates a set
of ten ‘‘hypernorms’’ – or universal rights – owed to
others. Lea (2004) has noted that these rights
encompass obligations that include the welfare as well
as the liberty of others. Verschoor (2004, p. 17)
laments the failure of business leaders and auditors
who have recently violated the rights of investors and the public, but suggests that the rule-based Sarbanes-
Oxley legislation intended to close the door on the
misuse of power is likely to be ineffective. Like other
scholars, Verschoor (2004, p. 17) has concluded that
lacking ‘‘ethical concerns, creative minds will find a
way to circumvent the spirit of any law.’’ The Individual
Rights model of business ethics encompasses
elements of stakeholder theory that overlap with the
Virtue Ethics and Universal Rules models.