Agency Theory and the Criminal Liability of Corporations

Abstract

In 1987, the United States Sentencing Commission took what was supposed to be "the first step in an evolutionary process" whose ultimate goal was to establish rational policies and guidelines for criminal sentencing. The Sentencing Commission began its work by establishing guidelines and policies for sentencing natural persons. It now has proceeded to consider sentencing guidelines for corporations. The consideration of penalties for corporations began with a "discussion draft" containing a proposal for sentencing guidelines for corporations, and proceeded to public hearings on the topic in October and November of 1988. A year later, in November, 1989, events took a different turn as the Sentencing Commission itself published its own "Preliminary Draft" for the sentencing of organizational defendants.