Abstract
Regulators serve as the long arm of government, acting to set and enforce legal standards that apply broadly to define the landscape of industry and commerce. Federal and state regulators serve to monitor corporate behavior in many different ways. notable examples range from the regulation of pollution by the environmental protection agency (epa), to the oversight of domestic aviation activity by the Federal aviation administration (Faa), to the supervision of securities markets and the capital formation process by the Securities and exchange commission (Sec).
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Endnotes
Michael Greenberg is a Senior Behavioral Scientist with the RAND Corporation and Director of the RAND Center for Corporate Ethics and Governance. He is a lawyer and a psychologist by training. He received his PhD in clinical psychology from Duke University and his law degree from Harvard, and spent several years in corporate law practice at Ropes & Gray in Boston prior to joining RAND.
Representative Barney Frank (D-Mass.) speaking on Bloomberg TV, 2 August 2012. Available at: http://hereisthecity.com/2012/08/03/rep-barney-frank-congress-cant-write-laws-to-stop-errors-like-kn/. Accessed 12 August 2012.
It is not a coincidence that these examples of regulatory focus correspond directly to several of the basic pillars of business reputation that we outlined in Chapter I.
See discussion in Department of Justice press release dated April 25, 2012, Former Morgan Stanley managing director pleads guilty for role in evading internal controls Required by FCPA.” Available at: "http://www.justice.gov/opa/pr/2012/April/12-crm-534.html Accessed 2 September 2012.
Ibid.
See Department of Justice, Appendix B-Chart 5, Sanctions imposed upon legal persons for FCPA violations since 1998. Available at: http://www.justice.gov/criminal/fraud/fcpa/docs/response3-appx-b.pdf. Accessed 2 September 2012.
Olster S. One nation, ruled by money. Fortune. 20 April 2012. Available at: http://features.blogs.fortune.cnn.com/tag/ethics/. Accessed 3 September 2012.
Tsukerman Y. He was getting close to my price. Available at: http://ytspar.tumblr.com/post/458327591/he-was-getting-too-close-to-my-price. Accessed 3 July 2012.
See 76 Federal Register 26490 (May 6, 2011). CMS, hospital inpatient value-based purchasing program: final rule.
See generally Fiegl C. AMEDNEWS.com, August 27, 2012. 2,200 Hospitals face Medicare pay penalty for readmissions. Available at: http://www.ama-assn.org/amednews/2012/08/27/gvsb0827.htm; and Rao J. NPR blog, August 13, 2012, Thousands of Hospitals face penalties for high readmission rates. Available at: http://www.npr.org/blogs/health/2012/08/13/158711121/thousands-of-hospitals-face-penalties-for-high-readmission-rates?sc=ipad&f=1001. Accessed 2 September 2012.
Subsequent reorganization within the Department of Interior has replaced the old MMS with two new administrative entities, the Bureau of Ocean Energy Management and the Bureau of Safety and Environmental Enforcement. See discussion at http://www.boemre.gov/. Accessed 2 September 2012.
See discussion in King & Johnson. An oil thirsty America divided into ‘dead sea.’ The Wall Street Journal. 8 October 2010.
See Bureau of Ocean Energy Management, Regulation and Enforcement. Report regarding the causes of the April 20, 2010 Macando well blowout, 14 September 2011, at 172. 14 Ibid.
See Wall Street to bail out Jersey City’s Knight Capital with $400 million package. Bloomberg News. August 6, 2012. Available at: http://www.nj.com/business/index.ssf/2012/08/wall_street_to_bail_out_jersey.html. Accessed 2 September 2012.
See Cheng J. The Wall Street Journal. 21 August 2012 Knight Capital’s woes chip away at Wall Street confidence. Available at: http://blogs.wsj.com/marketbeat/2012/08/21/knight-capitals-woes-chip-away-at-wall-street-confidence/. Accessed 2 September 2012.
Milligan. Wikipedia. Available at: http://en.wikipedia.org/wiki/Mulligan_%28games%29. Accessed 3 September 2012.
Patterson S, Strasburg J, Bunge J. SEC nixed Knight’s plea for a do-over. The Wall Street Journal. 6 August 2012. Available at: http://online.wsj.com/article/SB10000872396390444246904577571113923528168.html. Accessed 3 September 2012.
Rule 15c3-5 under the Securities Exchange Act of 1934, enacted November 15, 2010 (see Exchange Act Release No. 63241, Nov. 3, 2010, 75 FR 69792). See also discussion in Lynch SN. Reuters. August 3, 2012, U.S. SEC examining risk controls at Knight Capital. Available at: http://news.yahoo.com/u-sec-examining-risk-controls-knight-capital-213115172—sector.html. Accessed 2 September 2012.
Socrates (470 bc-399 bc) quotes. ThinkExist.com. Available at: http://thinkexist.com/quotations/reputation/2.html. Accessed 2 September 2012.
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© 2012 Nir Kossovsky
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Greenberg, M.D. (2012). Regulators. In: Reputation, Stock Price, and You. Apress, Berkeley, CA. https://doi.org/10.1007/978-1-4302-4891-0_10
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