NCJ Number
210801
Journal
American Criminal Law Review Volume: 42 Issue: 2 Dated: Spring 2005 Pages: 277-303
Date Published
2005
Length
27 pages
Annotation
This article presents the principles of corporate criminal liability.
Abstract
Corporate criminal liability emerged from the courts’ frustration with assigning criminal blame to fictional entities. This article begins by describing the three elements required for a corporation to incur criminal liability for the actions of its employees and then discusses the United States Sentencing Guidelines as well as the requirements the Sarbanes-Oxley Act of 2002 places on the Guidelines. In order for a corporation to incur criminal liability for the actions of an individual employee, the employee must have: (1) acted within the scope and nature of the job; (b) the action must have at least partially benefited the corporation; and (3) the act and its intent can be ascribed to the corporation. The purpose and scope of the Organizational Sentencing Guidelines are reviewed, including controls on prosecutorial discretion, the offenses covered, and the sanctions permitted. Corporations may reduce criminal liability through the implementation of effective programs to prevent and detect law violations. Footnotes