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I am not fully convinced by the compliance argument. People from other industries, for example the financial, have written very candidly on how easy it is to s
by maurits 11y ago
I am not fully convinced by the compliance argument.
People from other industries, for example the financial, have written very candidly on how easy it is to side step and circumvent the rules leaving their compliance departments in the wishful dark.
- sokoloff 11y agoI also believe that in some [limited] cases, compliance departments are intentionally neutered but not eliminated. Then, if it hits the fan, the company can show an appearance of trying to be compliant, and it was a simple mistake, thus seeking to avoid stiffer penalties for intentionality. Even in the best of cases, compliance departments can't be omniscient.
- jessaustin 11y agoYes an in-house compliance department, like a private auditing firm, leads inexorably to agency problems. They don't work for the general public or for investors; they work for the management of the firm. Generally it's best to just live with these agency problems, since we don't want to shut down corporations entirely, but in cases like this the government might need to do more.