Impact and result of Corporate Crime. There is a growing wave of corporate crime in United States. In his article, “insider trading”, Timothy Clary notes that although insider trading “is as old as markets” recent crime is of magnitude never heard before. He narrates how Raj Rajaratnam has been convicted of one of the worst insider trading. The article goes to great length to expose some of the worst insider cases that have been prosecuted.
Out of the 56 cases that have been brought in court, 51 have pleaded guilty. Although the article acknowledges that insider trading is as old as history, the author does not shed light why it is only in the past two years that the government has been serious in dealing with insider traders. This leaves question as to where the government has found impetus to prosecute to prosecute insider traders. Impact and result of Corporate Crime. Has it been a beneficiary of proceeds of insider trading or didn’t had the will to prosecute?
Impact and result of Corporate Crime
The author exposes the legal weaknesses that have allowed insider trading to persist. He wonders that the American laws do not provide a definition for what insider trading is, suggesting that there could be no established legal framework to deal with the crime. The prosecutor has to rely on other provisions outside the legal framework to prosecute insider trading cases. This is a good step in identifying some of the problems that are there in dealing with corporate crime. This is a weakness that every society that wants to address corporate crime must address in order to fight corporate crimes. Impact and result of Corporate Crime.
In the same tone, Jeffrey Sachs in his article, “The global Economy’s Corporate Crime Wave” regrets that the rich countries that are supposed to be the leaders in good corporate governance are the one leading in running down corporations. The article exposes the weaknesses in prosecutorial structures noting that two years down the line since the “unscrupulous behavior by the biggest banks on Wall Street, not a single financial leader has faced jail”. The article exposes the weaknesses of the corporate governance regulation in light of stemming the corporate crime. Impact and result of Corporate Crime.
Impact and result of Corporate Crime
The article is spot on when it argues that part of the corporate crimes has been fuelled by lack of a tough law to deal with corporate criminals. The current law is lenient on offenders. The article further exposes the weakness in the current corporate governance structure. The shareholders have little influence over the control of their corporations living the CEOs to single handedly run the giant corporations at their pleasure. This is a weakness that every corporate governance law should target in order to instill openness and transparency in corporate management. Impact and result of Corporate Crime.
More importantly, the article addresses the root causes of corporate crimes in U.S. the author notes the cohabitation between the CEOs and the politicians. The politicians are at the mercy of Wall Street gurus who have installed them on position of power or are themselves beneficiaries of proceeds of corporate crimes. Impact and result of Corporate Crime.
However, the article does not give any concrete solutions for the problems it identifies. It is true that the corporate governance in America is rotten but what should we do about it? What the citizens are looking at is someone with those wonder tricks that will go about reforming the corporate governance to make them open and transparent. Which are the laws that should be put in place? A scholarly article that does not address this critical concern remains just that, an article. Impact and result of Corporate Crime.
Clary, Timothy. Insider Trading. The New York Times. Oct. 26, 2011: n. page. Web. 14
Sachs, Jeffrey. The Global Economy’s Corporate Crime Wave. Project syndicate. April 30, 2011: n. page. Web 14 Nov< http://www.project-syndicate.org/commentary/sachs177/English