LGLS 3523 Lecture Notes - Lecture 3: United States Federal Sentencing Guidelines, Organizational Culture
Document Summary
Will set an ethical tone and create a corporate environment which discourages wrongdoing, reducing the likelihood that employees will commit crimes. Can detect misconduct at an earlier stage, allowing the organization to act quickly. Show good faith and thus avoid or minimize possible gov action. Can be a cost-saving device: effective programs and early detection. Early detection can minimize exposure to the federal sentencing guidelines penalties or civil damages. Containment of internal misconduct effectively conduct effectively conveys the message that such behavior will not be tolerated. Once the unauthorized behavior is detected, the company may opt to disclose its findings to the gov. Early detection and reporting can preempt whistleblower suits. Self-reporting might initiate an otherwise avoidable indictment: effective compliance programs can mitigate penalties upon conviction. Under the federal sentencing guidelines, substantial reductions (up to 90%) in potential fines are advised if an effective compliance program exists.