Corporation blameworthiness and federal criminal fines

Emily M. Homer and George E. Higgins

Journal of Financial Crime, 2020, vol. 27, issue 2, 413-422

Abstract: Purpose - The purpose of this paper is to assess if federal judges have sentenced criminal corporations to fines that are consistent with the seriousness of the offense and the blameworthiness of the organization, which would be in line with the directives from the US Sentencing Guidelines. This paper will also use the focal concerns framework to measure organizational blameworthiness. Design/methodology/approach - This paper uses secondary data from federal sentencing documents, collected by the US Sentencing Commission, for cases that were adjudicated between October 1, 2010 and September 30, 2017. Findings - Results showed that the focal concerns framework can be used to define potential constructs for blameworthiness and that an organization’s culpability score was a significant predictor in whether the company received a higher fine. Research limitations/implications - The data are unable to examine two of the three measures of focal concerns. Cross-sectional data limits the ability to draw conclusions regarding cause and effect between blameworthiness and monetary fines. Practical implications - Results imply that judges are sentencing corporations that have higher culpability scores to more severe fines, in accordance with both the federal Sentencing Guidelines and focal concerns framework. Originality/value - This study is one of the first to apply the focal concerns framework, usually used to examine the sentencing of individuals, to the sentencing of corporations. It is also one of the first to attempt to empirically define blameworthiness.

Keywords: Corporations; Financial penalties; Criminal sentencing; Monetary fines; Focal concerns; Blameworthiness (search for similar items in EconPapers)
Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:eme:jfcpps:jfc-01-2019-0010

DOI: 10.1108/JFC-01-2019-0010

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