Taking Compliance Seriously

Abstract

How can we ensure corporations play by the "rules of the game"-that is, laws encouraging firms to avoid socially harmful conduct? Corporate compliance programs play a central role in society's current response. Prosecutors give firms incentives-through discounts to penalties-to implement compliance programs that guide and monitor employees' behavior. However, focusing on the incentives of firms overlooks the perspective of managers, who decide how much firms invest in compliance

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