NCJ Number
45766
Journal
Journal of Criminal Law and Criminology Volume: 69 Issue: 1 Dated: (SPRING 1978) Pages: 40-58
Date Published
1978
Length
20 pages
Annotation
THREE MAJOR ISSUES FACING POLICYMAKERS IN THE AREA OF CRIMINAL SANCTIONS AGAINST CORPORATE ILLEGALITY ARE ADDRESSED. THESE ARE THE MORAL NATURE OF CORPORATIONS, THE PURPOSE OF CRIMINAL SANCTIONS, AND THEIR EFFECT.
Abstract
A BASIC THEORETICAL PROBLEM WHICH WILL REQUIRE ANALYSIS IS THE LACK OF DISTINCTION BETWEEN WHAT IS COMMERCIALLY ACCEPTABLE AND WHAT IS LEGALLY OR MORALLY ACCEPTABLE BUSINESS PRACTICE: BUSINESS AND A LARGE SEGMENT OF THE JUDICIARY DO NOT EQUATE CORPORATE WRONGDOING WITH ANTISOCIAL CONDUCT, WHILE MUCH OF THE GENERAL PUBLIC DOES. IT IS ARGUED THAT THE ENACTMENT OF CRIMINAL SANCTIONS FOR SOCIAL ENDS IS NOT WITHOUT PRECEDENT AND DOES PRESENT A VIABLE MEANS OF COMBATING CORPORATE WRONGDOING. IN GENERAL, SIX VARIABLES ARE ASSOCIATED WITH INDIVIDUAL RESPONSIVENESS TO LEGAL THREAT. THESE INCLUDE THE PERSONALITY AND DEMOGRAPHIC CHARACTERISTICS OF THE INDIVIDUAL, THE EMOTIONAL/VOLITIONAL CONTEXT OF THE THREATENED BEHAVIOR, COMMUNICATION OF THE THREAT, TYPES OF THREATENED CONSEQUENCES, SEVERITY OF THESE CONSEQUENCES, AND FINALLY THE CREDIBILITY OF THE THREAT. IT IS SUGGESTED THAT CORPORATE CRIME CONTINUES TO INCREASE PRIMARILY BECAUSE OF THE LOW CREDIBILITY OF THE LEGAL THREATS BEING MADE: THE CORPORATE CRIMINAL FACES A LOW PROBABILITY OF APPREHENSION AND LITTLE LIKELIHOOD OF SERIOUS PUNISHMENT. LOW CORPORATE FINES AND RARE IMPOSITION OF PRISON SENTENCES FOR CONVICTED INDIVIDUALS CONTRIBUTE TO THE GENERAL LACK OF EFFECTIVENESS OF CRIMINAL SANCTIONS AND POINT TO THE NEED FOR LEGISLATIVE REFORM. TO INCREASE THE EFFECTIVENESS OF SANCTIONS DIRECTED AGAINST CORPORATIONS, FINES SHOULD BE GAUGED TO BOTH THE SEVERITY OF THE OFFENSE AND THE SIZE OF THE CORPORATION; FORMAL PUBLICITY OF THE CRIMINAL CONVICTION SHOULD BE REQUIRED; REHABILITATIVE CORPORATE PROBATION PERIODS COULD BE INSTITUTED; EMPLOYEE SUPERVISION OF CORPORATE COMPLIANCE COULD BE FACILITATED; AND, IN CASES OF EGREGIOUS WRONGDOING, A CORPORATE QUARANTINE COULD BE IMPOSED OR CORPORATE DISSOLUTION COULD BE FORCED. IN ADDITION, THERE ARE A NUMBER OF EXISTING STATUTES AND REGULATIONS WHICH COULD BE INVOKED. TO INCREASE THE EFFECTIVENESS OF SANCTIONS AGAINST THE INDIVIDUAL, INDEMNIFICATION OF THE CORPORATE EXECUTIVE FOR INTENTIONAL MISCONDUCT COULD BE BARRED, A MINIMUM TERM OF IMPRISONMENT COULD BE MANDATED, AND BEHAVIORAL SANCTIONS OR DISQUALIFICATION FROM CORPORATE OFFICEHOLDING COULD BE DEPLOYED. THE INSTITUTION OF SUCH SANCTIONS AGAINST THE CORPORATION AND THE INDIVIDUAL COULD SERVE TO DETER WHITE-COLLAR CRIME.