Management and Directors Illegal Practices Law Case Study.

The article highlights some of the major cases that ended with some corporations having heavy financial and nonfinancial implications for unethical or illegal practices. Although the companies suffered heavy penalties, the directors are responsible for the poor decision management decisions they make. Management and Directors Illegal Practices Law Case Study.Therefore, the article explores the significance of extending legal punishments imposed on individual firms to the management and directors.

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The law recognizes a company as a separate legal entity from its stakeholders. As a result, legal implications to a firm do not extend to its directors as shown in the cases. However, companies do not make trivial decisions or take actions and the responsible parties in the management positions need to be held accountable for the decisions they make. Imposing punishments to directors and officers is a way of discouraging malpractices among the heads of the companies and promoting recommended legal practices in their lines of duty.Management and Directors Illegal Practices Law Case Study. The current legal framework is not designed to consider this unless under special circumstances like when it can be proven that the directors acted out of malice.

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The concern on whether to penalize directors the same way as their organizations remains debatable depending on how the legal framework is designed on the subject matter. Fining the firms is a necessary legal move. However, this is not enough as the management and boards have significant roles to play regarding the trivial decisions and actions made by the company. Therefore, criminal sentences should extend to directors for illegal practices even if it means amending the present legal systems on corporate governance.

Work Cited

United States Environmental Protection Agency. “2015 Major Criminal Cases”. US EPA, https://www.epa.gov/enforcement/2015-major-criminal-cases. Accessed 2 Apr 2019. Management and Directors Illegal Practices Law Case Study.