Corporate crime and punishment
There's a concept called corporate personhood. Basically, this means that a corporation should have the same rights as an individual.
OK, so much for rights. But what about a corporation's legal liabilities?
For example: An individual guilty of fraud might be sent to jail for (say) three years. He would lose his job, his income, and his assets could be seized if they are deemed the proceeds of crime.
But what about corporate fraud? The size of the fraud could be thousands or millions of times bigger, yet the corporation does not go to jail for three years, it does not lose it's "job", it does not lose its income, and the profits pocketed by the shareholders cannot be seized. At best, some fall guy cops a token penalty which is a joke when compared to the size and severity of the corporate crime, and the guys at the top usually pretend they were unaware.
You get the drift?
OK, so if that's the problem, how would YOU fix it?
OK, so much for rights. But what about a corporation's legal liabilities?
For example: An individual guilty of fraud might be sent to jail for (say) three years. He would lose his job, his income, and his assets could be seized if they are deemed the proceeds of crime.
But what about corporate fraud? The size of the fraud could be thousands or millions of times bigger, yet the corporation does not go to jail for three years, it does not lose it's "job", it does not lose its income, and the profits pocketed by the shareholders cannot be seized. At best, some fall guy cops a token penalty which is a joke when compared to the size and severity of the corporate crime, and the guys at the top usually pretend they were unaware.
You get the drift?
OK, so if that's the problem, how would YOU fix it?
posted by The Editor at
12:10 AM
2 Comments:
The treasury meaning the Fed Govt via the courts should acquire a minimum of ten per cent of the convicted organisation (Do not include liabilities).
Depending on the volume of crimminal activity the percentages would increase accordingly to a possible maximum when the organisation would be effectively confiscated and the shares of the org sold by the treasury.
This would mean, any one involved within the business no matter how large or small, you all take the rap.
Yes, and perhaps immunity and protection for whistleblowers who are not primary perpetrators.
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