Corporate Misconduct: The Legal, Societal, and Management Issues

By Margaret P. Spencer; Ronald R. Sims | Go to book overview
Save to active project

have taken all reasonable steps to respond appropriately to the offense and to prevent further similar offenses -- including any necessary modifications to its program to prevent and detect violations of the law."50 A corporation cannot rest after its initial effort; it must consider appropriate changes to the program if a violation occurs and if the law should change.

The issues surrounding corporate criminal liability are complex and rapidly evolving. The stakes are high and the potential for a mistake is great even when a corporation acts with the best intentions. Prudence requires that a corporation seeking to avoid the devastating consequences of a criminal prosecution of the company or its employees obtain competent advice from experienced counsel before a problem arises.

Despite the hostility with which some view codes of conduct these codes have become a permanent part of the corporate landscape. In the abstract, it is difficult to object to the adoption of a corporate code.

Thus, the positive factors, when combined with the legal incentives, should compel every corporation to implement an effective code of conduct. Considering these advantages, a corporation can no more afford to operate without an effective corporate code of conduct than it can afford to operate without liability insurance. Only extremely careless or foolish executives will fail to implement and enforce a compliance program and risk losing the significant advantages of such programs.


NOTES
1.
Harvey L. Pitt and Karl A. Groskaufmanis, "Minimizing Corporate Civil and Criminal Liability: A Second Look at Corporate Codes of Conduct," Georgetown Law Journal 78 ( 1990): 1559.
2.
Dan K. Webb and Steven F. Molo, "Some Practical Considerations in Developing Effective Compliance Programs: A Framework for Meeting the Requirements of the Sentencing Guidelines," Washington University Law Quarterly 71 ( 1993): 375.
3.
Michele Galen, "Keeping the Long Arm of the Law at Arm's Length," Business Week, April 22, 1991, p. 104.
4.
Webb and Molo, "Some Practical Considerations," p. 375.
5.
Business Roundtable, Business Roundtable, Corporate Ethics: A Prime Business Asset ( New York: Business Roundtable, 1988), p. 178; see Gerry Spence, With Justice for None ( New York: Penguin, 1989), p. 285.
6.
David K. Webb, Steven F. Molo and James Hurst, Understanding and Avoiding Corporate and Executive Criminal Liability ( New York: Times Books, 1993), p. 246.
7.
Webb and Molo, "Some Practical Considerations," p. 375.

-179-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
Loading One moment ...
Project items
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited page

Bookmark this page
Corporate Misconduct: The Legal, Societal, and Management Issues
Settings

Settings

Typeface
Text size Smaller Larger
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

While we understand printed pages are helpful to our users, this limitation is necessary to help protect our publishers' copyrighted material and prevent its unlawful distribution. We are sorry for any inconvenience.
Full screen
/ 218

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.

Are you sure you want to delete this highlight?