It might sound absurd to some, but a new bill currently being reviewed could allow corporate bosses to take the blame for the criminality of their employees. However there is an argument that this might sound unfair to some and others could argue that the boss may not be fully aware of their employees’ undertakings.
But before anyone cries foul let’s take a look at why the idea that the boss also take blame for employee criminality could actually be good. Normally when an employee commits a criminal act while employed by the company that person would usually take the blame. In fact, it would be very rare that a high level executive who is in charge of said employee would take the blame.
This could be for several reasons. One would be that the lower level employee would be easier to replace. Another key reason is keeping the company’s reputation intact as the higher level employee could actually be a public face.
With that being said many of those who are in favor of such a law believe that this law could actually help prevent the amount of fraud cases against bigger corporations. As the law currently stands higher level employees are not responsible for any money laundering, false accounting or fraud cases unless they personally help with the acts themselves.
This new law would have these higher level employees hold responsibility to the staff who report to them. The main reason is that these employees have the power to delegate tasks to their employees and should remain vigilant as to what their employees are doing. While this could prove difficult to those in a large corporation, the bill would also see that the chain of command would be followed and that unless the case reaches up to top executives, the right people involved would see litigation.
However, it should be noted that the line on who is responsible and who should be delegated as in charged are not entirely clear. These lines as well as clear boundaries will be ironed out before the bill will even be discussed.
If you or someone you know might be a part of a case such as this, the law offices of Edward Lai Law are willing to help. For a consultation on your potential case you can call 510-397-8287