Corporate Criminal Liability and the Comparative Mix of Sanctions (From White-Collar Crime Reconsidered, P 309-331, 1992, Kip Schlegel and David Weisburd, eds - See NCJ-140367)

• NCJ Number: 140381
• Author(s): S Walt; W S Laufer
• Date Published: 1992
• Length: 23 pages
• Sale Source: Northeastern University Press
• Publication Type: Legislation/Policy Analysis
• Language: English
• Country: United States of America

Annotation

This analysis of sentencing options for corporate crimes concludes that a variety of incapacitative sanctions should be considered for corporations, just as they are for individuals.

Abstract

Features of entities, rather than personhood, are essential for determining criminal responsibility. Therefore, individuals and corporations should face equal liability for like offenses committed in like circumstances. Although courts and various commentators have agreed that corporations cannot be imprisoned, six other types of incapacitative sanctions are available. They would be imposed in the form of probation conditions and present a wide range of alternatives for a sentencing judge. Charter incapacitation limits a corporation's charter for a specified term to control illegal business dealings. Operational incapacitation bars a corporation from engaging in intrastate, interstate, or foreign commerce for a specified term. Registration or certification incapacitation withdraws a registration or licensure for a specified term. Receivership incapacitation places the operation of a corporation under the supervision of a marshal. Transactional incapacitation bars a corporation from particular types or locations of business or from particular clients. Divestiture incapacitation requires the sale of the part of the corporation that has been identified as chronically offending. Negative externalities in the form of harm to innocent employees and shareholders should be considered when imposing a sanction, but incapacitation need not always induce more externalities than other sanctions.