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Prosecutors in the BoardroomUsing Criminal Law to Regulate Corporate Conduct$
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Anthony S. Barkow and Rachel E. Barkow

Print publication date: 2011

Print ISBN-13: 9780814787038

Published to NYU Press Scholarship Online: March 2016

DOI: 10.18574/nyu/9780814787038.001.0001

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PRINTED FROM NYU Press SCHOLARSHIP ONLINE (www.nyu.universitypressscholarship.com). (c) Copyright University of NYU Press Press, 2021. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in NYSO for personal use.date: 27 September 2021

The Causes of Corporate Crime

The Causes of Corporate Crime

An Economic Perspective

(p.11) 1 The Causes of Corporate Crime
Prosecutors in the Boardroom

Cindy R. Alexander

Mark A. Cohen

NYU Press

This chapter examines the causes of corporate crime from an economic perspective. More specifically, it considers why corporate misconduct occurs and looks at the factors that law enforcement authorities and corporate monitors take into account in determining how best to deter it. It begins with a review of the fundamental assumptions of the economic model of crime and its origins, along with the empirical evidence on its practical relevance. It then assesses the implications for the choice of enforcement strategy and design of sanction, the empirical literature on corporate criminal sanctions, and practical implications for the design of enforcement institutions. It also explores the role played by rational, self-interested individuals in causing or preventing corporate crimes and argues that corporate criminal enforcement must influence the acts and omissions of individuals within the corporation in order to successfully combat corporate misconduct.

Keywords:   corporate crime, corporate misconduct, law enforcement, corporate monitors, economic model of crime, criminal sanctions

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