Preventing Corporate Crime from Within: Compliance Management, Whistleblowing and Internal Monitoring

Van Rooij, B., & Fine, A. (2019). Preventing Corporate Crime from Within. In M. Rorie (Ed.), The Handbook of White Collar Crime (pp. 229-245). New York: John Wiley and Sons.

UC Irvine School of Law Research Paper No. 2020-10

Amsterdam Law School Research Paper No. 2020-26

General Subserie Research Paper No. 2020-08

27 Pages Posted: 31 Mar 2020 Last revised: 28 May 2020

See all articles by Benjamin van Rooij

Benjamin van Rooij

University of California, Irvine School of Law; University of Amsterdam - Faculty of Law

Adam Fine

Arizona State University (ASU) - School of Criminology & Criminal Justice

Date Written: June 14, 2019

Abstract

To reduce and prevent corporate crime and wrongdoing requires more than punishment of corporations and corporate executives. True change requires transformations within such corporations. This paper discusses three options to induce such corporate transformations: corporate compliance management mechanisms, whistleblower protection rules, and independent internal monitoring. The paper concludes that the existing empirical evidence shows doubt whether these systems actually can be effective in reducing corporate crime and wrongdoing. It concludes that the available studies show that these systems are more likely to be effective exactly where it is least needed, namely when there is leadership commitment to compliance, when there is successful external oversight and when there is a compliance culture. The paper concludes with critical thoughts about what this means for existing legislation stimulating these systems, for regulators and compliance officers, as well as for research in this area. Here it argues that internal compliance management must become much more based on behavioral insights from the social and behavioral sciences, and that the scientific community must do a greater effort to provide such support to public and private practitioners.

Keywords: compliance, compliance management, whistle blowers, monitors, regulation, regulatory law enforcement, self-regulation

JEL Classification: K20, K23, K42, M14

Suggested Citation

van Rooij, Benjamin and Fine, Adam, Preventing Corporate Crime from Within: Compliance Management, Whistleblowing and Internal Monitoring (June 14, 2019). Van Rooij, B., & Fine, A. (2019). Preventing Corporate Crime from Within. In M. Rorie (Ed.), The Handbook of White Collar Crime (pp. 229-245). New York: John Wiley and Sons. , UC Irvine School of Law Research Paper No. 2020-10, Amsterdam Law School Research Paper No. 2020-26 , General Subserie Research Paper No. 2020-08, Available at SSRN: https://ssrn.com/abstract=3563478

Benjamin Van Rooij (Contact Author)

University of California, Irvine School of Law ( email )

401 E. Peltason Dr.
Ste. 1000
Irvine, CA 92697-1000
United States

University of Amsterdam - Faculty of Law ( email )

Amsterdam, 1018 WB
Netherlands

Adam Fine

Arizona State University (ASU) - School of Criminology & Criminal Justice ( email )

411 N. Central Avenue
Phoenix, AZ 85004
United States

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