Open Access

Is our consumption behavior rational? Due to their limited available rationality („bounded rationality“), humans resort to cognitive abbreviation strategies (known as heuristics) to make decisions. Based on insights from psychology and other social sciences, „Behavioral Economics“ attempts to improve the reality of traditional economic theories.If the consumer does not act purely rationally, which factors influence his behavior? What are the consequences? Following theoretical foundations the second part addresses the impact of financial contraints on consumer behavior. The last part deals with basic effects of the digital economy on consumer behavior.

This working paper addresses the effectiveness of compliance management systems (CMS). The objective is to answer the question whether CMS are effective, and to consider the limits of compliance. For this purpose, the highly legalistic topic is considered in the context of business ethics and behavioural economic foundations. The review of effectiveness is based on the seven basic components set out in the Assurance Standard of the Institut der Wirtschaftsprüfer in Deutschland e. V. [Institute of Public Auditors in Germany, Incorporated Association] (IDW AssS 980). To answer this question, reference is made to the three levels of business ethics and to selected behavioural economics concepts. For example, performance pressure, peer pressure and variable compensation schemes encourage opportunistic behaviour. It is argued that corporate compliance depends significantly on the behaviour of single individuals and their environment. Especially in the context of economic activity and competition, compliance cannot be equated to morality and ethics, or be expected as a matter of course. On the whole, the interdisciplinary consideration of corporate compliance demonstrates a natural limit whenever ethical and moral standards are contrary to economic interests.