GROWING CRIMINAL LIABILITY OF EXECUTIVES

• NCJ Number: 41222
• Journal: Harvard Business Review Volume: 55 Issue: 2 Dated: (MARCH-APRIL 1977) Pages: 1-4
• Author(s): T MCADAMS; R C MILJUS
• Date Published: 1977
• Length: 5 pages
• Corporate Author: Harvard University
• Publication Format: Article
• Language: English
• Country: United States of America
• Note: REPRINT

Annotation

ARTICLE DESCRIBES THE EXTENT TO WHICH CORPORATE OFFICIALS CAN BE MADE RESPONSIBLE FOR THEIR COMPANIES' CRIMINAL NEGLIGENCE.

Abstract

U.S. CORPORATE OFFICERS ARE INCREASINGLY AT RISK OF CRIMINAL PROSECUTION FOR EITHER THEIR COMPANIES' FAILURE TO COMPLY WITH FEDERAL REGULATIONS OR FOR OTHER ORGANIZATIONAL WRONGDOING. THESE AUTHORS CITE THE CASE OF JOHN PARK, WHO WAS FOUND GUILTY OF VIOLATING THE 1938 FOOD AND DRUG ACT BECAUSE OF UNSANITARY CONDITIONS IN ONE OF HIS COMPANY'S WAREHOUSES. THEY POINT OUT THAT THE REASONING IN PARK THAT HOLDS AN OFFICER LIABLE FOR FAILURE TO PREVENT OR CORRECT A VIOLATION MAY BE A PRECURSOR TO OTHER CASES. THEY CONCLUDE FURTHER THAT THE TREND TOWARD INCREASED PERSONAL LIABILITY EXPRESSES THE GENERAL PUBLIC DISSATISFACTION WITH PAST PENALTIES FOR CORPORATE MISDEEDS AND A DETERMINATION IN BOTH GOVERNMENT AND LEGISLATURE TO MAKE BUSINESS MORE ACCOUNTABLE THROUGH ITS OFFICERS.(AUTHOR ABSTRACT)....BDS