Question

An energy corporation is worried about its exposure to criminal liability after a rival company is...

An energy corporation is worried about its exposure to criminal liability after a rival company is indicted for violating environmental laws.

Select the strategy that would be least effective in reducing the company's criminal liability.

  • It could hold annual training seminars on the current state of environmental law, using the investigation as an example.

  • Its leadership could establish a culture of respect for legal compliance through example.

  • It could develop an anonymous internal reporting system for employees who suspect illegal or unauthorized behavior.

  • It could cooperate with authorities in their investigation of the rival company.

Homework Answers

Answer #1

ANS

Option D. It could cooperate with authorities in their investigation of the rival company. It is the strategy which would have the least effect on reducing the company's criminal liability. As only cooperating with the investigators for the rival company's investigation would lead the rival company go down but it would not give any effect on the company's criminal liability. Holding annual meeting seminars for current environmental law, establishing culture of respect for the legal compliance and developing an anonymous internal reporting system for employees who suspect illegal or unauthorized behavior would give the investigators an idea that the company works towards environment protection and works towards reducing criminal liability.

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