Corporate Compliance Monitoring Program

Corporations cannot go to jail, but they can be fined or even put out of business for committing criminal violations. Responsible companies understand that business ethics are good for business and that effective policies and procedures can minimize risk of liability. What is important to remember, though, is that while a corporation cannot go to jail, corporate officers who are shown to be negligent in overseeing the company’s employees can.

PCI establishes a regular compliance program with scheduled and unscheduled monitoring. PCI also coordinates with clients to ensure that their agents and employees are consistent in complying with a variety of rules, regulations, and state and federal laws as well as safeguarding against any possible job-related fraudulent activities. PCI works closely with the designated corporate officers to create an effective employee infrastructure conducive to a “culture” of compliance.

In 1996, a Delaware Chancery Court stated that in In re Caremark International, Inc., corporate officers who showed good faith in the exercise of their monitoring system cannot be held liable for errant action by an employee or agent acting on behalf of the company and its board. The Court argued that Caremark directors were not liable in a civil suit brought against the company because they had been pro-active in instituting a compliance program and properly overseeing it.

To this end, PCI’s compliance program, if effectively implemented, is cost effective in mitigating risks of litigation or law enforcement investigations, and will indemnify directors, officers, and shareholders from the devastating effects of illegal acts committed by employees or representing agents.