"Why Corporate Fraud Is So Rampant: Wall Street's Cop" by Preet Bharara at CNBC

[applegrove]

Why Corporate Fraud Is So Rampant: Wall Street's Cop

By: Preet Bharara
United States Attorney for the Southern District of New York
at CNBC

http://www.cnbc.com/id/48286908

"SNIP....................................

This impulse is troubling to prosecutors and outrageous to a public that expects American companies to aspire to more than the bare minimum. It does not suffice for a leader to give pro forma admonitions to behave honestly. A requirement to attend training sessions in the minutiae of the regulatory structure constitutes the bare minimum. So does the mere existence of compliance programs fly-specked by a hundred lawyers.

The aim should not be simply to cover bases and backs, but to build an ethical culture that becomes self-sustaining. One place a business might begin is with hiring practices. Hiring managers should insist on the importance of integrity; they must look for it and they must screen for it.

Another imperative is to create a culture in which good people say something or do something when they see bad conduct. And others must act when the whistle is blown, because it doesn’t matter how loud the whistle is blown if the players on the field are deaf or have chosen to wear earplugs.

Ultimately, in the everyday practice of business, every single employee, from the mailroom to the boardroom, must adhere to the highest standards. Profound personal integrity—repeatedly demonstrated and openly valued—must be the coin of the realm.

....................................SNIP"