Why corporations have policies

Corporations are potentially liable for any violation of law by corporate employees committed in the course of the corporations’ business.  There are so many applicable laws that the employees can’t know the details of them all.  So the corporations establish policies that, if followed, reduce the risks of the employees inadvertently violating the law.

“State Department Watchdog Chastises Clinton On Email,” The Wall Street Journal, May 26, 2016 A1.  Inspector General report on Hillary Clinton’s violation of State Department policies on emails.

The State Department policies were in place for security reasons and to avoid inadvertent violations of the Freedom of Information Act and the various record retention requirements applicable to the federal government.  But for those policies to work, the employees would have had to follow them.

And what are the chances that other employees at the State Department complied with those policies?  Or other policies the State Department had in place?  Is it better now?

Who had the duty to confirm that the policies were being followed?  What’s happened to them?

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Filed under Board, Business Case, Compliance, Compliance, Compliance, Controls, Culture, Culture, Directors, Duty, Duty of Care, Employees, Governance, Internal controls, IT, Management, Oversight, Ownership, Policy, Requirements, Risk, Security

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