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Corporate Criminal Liability

NCJ Number
178079
Journal
American Criminal Law Review Volume: 36 Issue: 3 Dated: Summer 1999 Pages: 445-473
Author(s)
Cynthia E. Carrasco; Michael K. Dupee
Date Published
1999
Length
29 pages
Annotation
This article outlines the elements of corporate criminal liability, recent trends related to this issue, and organizational sentencing under the guidelines for Sentencing of Organizations adopted by the United States Sentencing Commission in 1991.
Abstract
The discussion notes that for a corporation to be liable for the acts of an individual, the individual must be acting within the scope of employment, the individual must be acting to benefit the corporation, and the act and intent must be imputed to the corporation. The provisions of the organizational guidelines for sentencing include (1) mechanisms to remedy harm caused by an organization, including restitution, remedial measures, and community service; (2) probation, ranging from the requirement that no further crimes be committed during the prohibition term to the issuance of surprise audits and periodic reports; and (3) the imposition of monetary fines, largely determined by calculating the base level, base fine, and culpability factor. An organization can mitigate its culpability by taking actions when it discovers the offense and afterward, thus demonstrating a commitment to abiding by the law. It may also reduce its culpability score by having had in place an effective compliance program to prevent and detect law violations. Footnotes