Effective Compliance Means Imposing Individual Liability

Emory Corporate Governance and Accountability Review (2018) Vol. 5

8 Pages Posted: 18 Mar 2019

See all articles by Reuben Guttman

Reuben Guttman

Emory University School of Law

Date Written: 2018

Abstract

This essay argues that individual executives must be held personally liable for corporate crime that places consumers in harm’s way. Placing emphasis on the conduct of pharmaceutical companies that has placed patients at risk by causing the medically unnecessary consumption of drugs, this article examines instances of corporate misconduct wherein the justice system failed to hold responsible executives liable.

It suggests that corporations gauge the cost of noncompliance as the cost of doing business – if the profits of misconduct exceed the price of being held liable, corporations will view civil and even criminal sanctions as simply the price for a license to break the law. It ultimately concludes that without threat of individual prosecution, corporations will continue committing harmful wrongs. This essay hopes its analysis will emphasize to regulators and lawmakers the need to impose more severe consequences for a corporate executive’s decision to implement or encourage misconduct that ultimately harms consumers or employees.

Keywords: corporate governance, liability, corporations, compliance

Suggested Citation

Guttman, Reuben, Effective Compliance Means Imposing Individual Liability (2018). Emory Corporate Governance and Accountability Review (2018) Vol. 5 , Available at SSRN: https://ssrn.com/abstract=3342517

Reuben Guttman (Contact Author)

Emory University School of Law ( email )

1301 Clifton Road
Atlanta, GA 30322
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
36
Abstract Views
628
PlumX Metrics