Discouraging Big Businesses From Behaving Badly Without New Major Gov’t Regulations

© Liz Van Steenburgh | Dreamstime Stock Photos Article By David Grace (www.DavidGraceAuthor.com)
  • People generally act in conformance with their cultural rules, values and ethics, and
  • People generally act to maximize what they see as being in their short-term to medium-term self interest.
  • Maintain and improve the quality of the company’s products and services to the extent possible while still maintaining reasonably profitable business operations;
  • Provide a living wage and reasonable benefits to the company’s employees commensurate with those provided by other businesses of a similar size in the same industry
  • Comply with the spirit as well as the letter of all laws and regulations applicable to the company’s products, services and operations
  • Act in all ways that are fair and reasonable with regard to the company’s vendors, customers and employees.
  • Publicly identifying the executive in charge of the company’s department or division that engaged in that wrongful conduct, and
  • Imposing personal financial liability on the executive for a portion of the fines and penalties levied on the corporation for that wrongful conduct.
  • Executives responsible for committing or turning a blind eye on the wrongful conduct would be barred from receiving any severance pay if terminated within two years after the discovery of the wrongful conduct, and they would be required to refund a portion of the salaries and bonuses they received during the period that the wrongful conduct took place.
  • Board members who failed to initiate or, if initiated by others, failed to vote in favor of board actions that would have discovered or halted the wrongful conduct would be personally liable for a percentage of the company’s fines and penalties without reimbursement from the corporation. Further, the company would be prohibited from providing any insurance that would otherwise indemnify the directors from any such obligations.

Limitations On Executive Compensation

Corporate Bad Behavior Is Perfectly Understandable

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David Grace

Graduate of Stanford University & U.C. Berkeley Law School. Author of 16 novels and over 400 Medium columns on Economics, Politics, Law, Humor & Satire.