Federal Sentencing Guidelines
As strange as it may sound, corporations can be found guilty of crimes, including violations of federal and state environmental laws. Businesses can be fined heavily and barred from carrying on certain types of business entities, and responsible individuals within the company may also be penalized.
In recent years, there has been an increase in corporate criminal violations, including violations of environmental standards. Some of the environmental statutes and regulations that cause trouble for businesses involve:
- Hazardous or radioactive materials handling and disposal;
- Improper use of chemicals or other substances;
- Inadequate venting or protection of workers or consumers;
- Groundwater contamination and water pollution;
- Excessive plant emissions;
- Biohazard or medical waste handling and disposal;
- Wetlands encroachment or damage; and
- Solid waste handling and procedures.
In 1991, the U.S. Sentencing Commission developed the Organizational Sentencing Guidelines (also referred to as the Federal Sentencing Guidelines), which help government agencies and courts determine the appropriate penalties for violations of federal criminal laws impacting businesses.
The guidelines define the consequences of corporate criminal activity, with very steep penalties, but they also included ways for businesses to avoid major problems through advance planning. If a business demonstrates due diligence in attempting to avoid violations, then its liability can be reduced. This special treatment for corporations depends mainly on the use of compliance training programs for key employees. Such programs can help demonstrate a corporation's attempts to avoid problems, even if a violation does occur.
Several state and federal courts have approved leniency based on compliance programs. In those cases, corporations with effective compliance programs, which met guidelines developed by the commission, were able to use those programs as proof that they made a good-faith effort to avoid violations. Keep in mind, however, that criminal responsibility may not be completely abrogated. An experienced attorney can help ensure that your corporation's environmental practices are in accordance with the law, as well as help build a compliance program that demonstrates due diligence to stay within the boundaries of the law.
To read and printout a copy of the Form please link below.
Federal Sentencing Guidelines: Compliance Program Checklist
You can download a free copy of Adobe Acrobat Reader here.
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