CEOs as Criminal Fall-Guys?

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  1

  JimBouchard

  04/01/08 | Report as spam

  Why wouldn't they be responsible?

  Why wouldn't a CEO be responsible for criminal activity in his or her own company?
  
  Here are two of the dirtiest and most offensive words in today's American lexicon: "Personal Responsibility."
  
  Most of the people I know in business are good, honest, hard-working people. Most of the CEOs I know and do business with care deeply about their companies and the people who work for and with them. Most of these people would never consider criminal or immoral actions, neither would they pass the blame if they missed criminal activity on their watch.
  
  I don't advocate setting arbitrary limits on compensation for CEOs or limiting profit margins for businesses. On the other hand, if compensation or profits are unlimited, responsibility must also be unlimited.
  
  You simply can't have one without the other.
  
  Jim Bouchard
  Author of Dynamic Components of Personal Power
  JimBouchard.org

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  2

  paraprof

  04/01/08 | Report as spam

  RE: CEOs as Criminal Fall-Guys?

  CEO's carry home big, big bucks because of their big, big responsibilities. Perhaps this action would lend a little serious attitude to the business of wheeling companies and peoples lives. There are methods to put in place to ensure that the ethically challenged can take care of business. It starts with pure administrative responsibility. Lots of people are pushed out of the corporate door once they ring the alarm.

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  3

  LWeller2

  04/01/08 | Report as spam

  That's the issue

  This law couldn't be passed without adding to it the obligation of employees to report fraud or also be held accountable. Without this element, employees bringing info to the CEO or practically anyone in the hierarchy would be viewed as potential trouble and their jobs would be on the line. That's precisely what happened at Enron.

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  4

  icmcl

  04/01/08 | Report as spam

  RE: CEOs as Criminal Fall-Guys?

  I am researching for an MSc in Corporate Governance and it is quite obvious that the most signficant resistance to Sarbox obligations stems from the fact that far too many CEOs and their Boards do not fully understand all the risks of their business, or how to implement and operate robust Enterprise Risk Management measures. This is a global governance problem, but if you look at how many major companies are settling substantial SEC fines rather than manage their risks properly, you will see that most CEOs in Colorado could soon end up in jail!!