Organization A has employees spread across a wide geography.  Its employees are trained on the legal rules and requirements relevant to their jobs.  Yet despite the organization’s best training efforts and its committment to compliance and ethics, certain employees  fail to conduct themselves according to the training and thus violate the law.  Organization A, as  an entity will not be held accountable, the organization will not be forced  – based on the isolated employee’s conduct – to conduct a thorough review of its entire operations, and will not have a compliance monitor imposed on it.

Organization B has employees spread across a wide geography.  Its employees are trained on the legal rules and requirements relevant to their jobs.  Yet despite the organization’s best training efforts and its committment to compliance and ethics, certain employees fail to conduct themselves according to the training and thus violate the law.  Organization B, as an entity will be held accountable, the organization will be forced – based on the isolated employee’s conduct – to conduct a thorough review of its entire operations, and will likely have a compliance monitor imposed on it.

Organization A is the Department of Justice in the Lindsey FCPA enforcement action.  (See here for the prior post on Judge Matz’s order vacating the verdicts and dismissing the indictment based on prosecutorial misconduct)

Organization B is a typical multinational company involved in an FCPA enforcement action.

Should there be a difference?