Ourview
3
strikes law, good business
The three strikes law, whether we agree
with it or not, is here to stay. On March
5 the Supreme Court upheld California’s
toughest-in-the-nation three strikes sentencing
law, which imprisons career criminals for
at least 25 years upon a third felony conviction,
regardless of the severity of the offense.
The Supreme Court “explicitly upheld the
sentence of Gary Albert Ewing, 38, a convict
in poor health who got 25 years to life
for grand theft of three golf clubs worth
$1,197,” the Washington Times reported.
“He was previously imprisoned nine times
for robbery, burglary and violating conditions
of his release.”
Apparently crime is taken extremely serious
here in California. Do we take corporate
crime as seriously?
A“three strikes” bill that would prohibit
companies with multiple convictions from
doing business in California was launched
in the Senate Tuesday.
This bill would essentially treat corrupt
corporations in the same manner as individual
criminals. This would make the way we treat
crime more consistent because of the individual
status companies achieve through incorporation.
Investorwords.com describes a corporation
as “The process of becoming a corporation,
called incorporation, gives the company
separate legal standing from its owners
and protects those owners from being personally
liable in the event that the company is
sued.”
This means that the owners of a corporation
are protected because the corporation is
legally granted individual status separate
from the owners. It makes logical sense
that we should be equally as tough on corporations
as we are on citizens.
The proposed bill, SB 335, is sponsored
by the Foundation for Taxpayer and Consumer
Rights. Under the measure, a business convicted
of three felonies in the state or federal
courts in California would be prohibited
from doing business in the state.
The California Chamber of Commerce opposes
the bill because it would make corporations
liable for their criminal activity.
A Chamber of Commerce lobbyist, Dominic
DiMare, told the Los Angeles Times that
he opposes the bill because “it was so broadly
written that the criminal activity of only
one company executive could set off a chain
events that might bring the entire corporation
down.”
What better deterrent against corruption
could there be? Corporations must be responsible
for the actions of its executives, even
if it is only one. The Enron scandal may
have been avoided had such laws been in
place a few years ago.
On July 30, 2002, President Bush signed
the Sarbanes-Oxley Act of 2002 in to law.
The act introduced significant corporate
governance and reporting changes to public
companies that file reports or have registered
securities with the Securities and Exchange
Commission. But this law did not go far
enough.
Sen. Gloria Romero told the L.A. Times that
enforcement of existing laws that can put
a corporation out of business is weak and
seldom exercised. She also said that “current
penalties are civil fines or financial settlements
whose effects are short-lived and can be
chalked up by corporate bad actors as merely
the cost of doing business.”
The Enron scandal has taught us that we
need to keep a closer watch on how corporations
are doing business. Money and power are
the two most influential corrupters in our
society. Corporations are in the business
of increasing both. It is only logical that
we punish them as severely as we do living,
breathing people.
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