Business behaving badly, why fines don’t deter corporate malfeasance

 

 

 

 

 

 

 

 

This last year was a record one for fines and financial settlements levied against corporations for breaking laws and wreaking havoc on the economy, especially banks and other financial institutions primarily responsible for creating the Great Recession.

The question is whether forcing corporations to pay changes their bad behavior.

Watch this New York Times video that reviews three examples of businesses behaving badly because they view such fines and settlements as the cost of doing business.

The question is whether more severe penalties, including jail time for executives who are responsible for the behavior of their corporations, can incentivize them to follow the law.

After all, corporations are citizens, and when citizens commit felonies, they often lose their rights. Perhaps we need legislation so that corporations that break the law lose their rights as well.