Wednesday, September 9, 2009
The most effective way to achieve corporate compliance is to have individuals comply with the law. The reality, however, is that punishing misconduct, a reactive model, is the common methodology used to attain future legal compliance. Focusing more resources on the front end and using a pro-active model to achieve compliance would keep the corporate structure whole and yet also provide a sound basis for eradicating corporate criminality. This Essay proposes that an education model be implemented, with the government more actively participating in promoting compliance with the law.
The paper points out the costs associated with "reactive" approaches to corporate wrongdoing, including how the tendency of the corporation to sacrifice some employees during an investigation can work to make employees generally reluctant to seek assistance from corporate counsel and the like to ensure compliance with the law. It also describes some of the educational activities already engaged in by federal agencies to foster compliance and suggests possible benefits from their wider use.