Facebook's USD 5 billion fine for serial data protection breaches imposed by the Federal Trade Commission (FTC) is not going far enough. After the news of the fine on the market, Facebook's market value increased by $ 10 billion and the net worth of Chief Executive Officer (CEO) Mark Zuckerberg increased by $ 1 billion. Facebook's leaders were happy. Why not? Facebook did not agree with a misconduct and the market price rose. FTC accused the company of the crime because it "deceived" the users who could control the protection of their personal information. This result was good for Facebook. The company pays, not an executive or executives; Now they can continue their greed-induced policy uninvolved. A fine of $ 5 billion is not a significant penalty. This is 23% of the year-ago profit ($ 22 billion) and less than 10% of revenue.
Facebook's $ 5 billion penalty excuses its leaders
Who or what is Facebook? It does not work, do not talk or do not think; How did it commit this violation? Senior executives, CEO Mark Zuckerberg, COO Sheryl Sandberg and other executives decided on the matter. They are the culprits. The law must hold her accountable, not the shell, the ship, the lifeless society, Facebook. Punishing the company and not its executives sends a terrible message that executives take advantage of. They receive a free ticket if their greed and other actions are wrong. And they win until it stops; then the "vehicle" pays off. This is akin to the law of giving a drunken driver a ticket while relieving the driver.
The Supreme Court turned companies into people
Punishing a business and apologizing to its executives is part of a broken system that needs urgent repair. However, this repair is not carried out as the 2010 Supreme Court ruling has confirmed companies as individuals. I understand the reason. It's easier to tax, sue, and punish companies than people. For prosecutors, it is harder to condemn people in companies than their companies. Sometimes it's hard to prove who committed these crimes. This means that we need to work smarter and tougher when there is evidence that the business is in widespread use. The law must at least hold the CEO and the CEO accountable.
The Supreme Court ruling does not prevent executives from being punished. It goes beyond the legal liability of the managing director. However, since it is easier to blame the company, those responsible take dangerous risks and are free to drive if these risks lead to crime. So leaders are abusing people's privacy, committing scams, collecting bonuses and paying investors for their misdeeds. Big Pharma is a prime example of how crime pays off. But her behavior hurt and sometimes killed people. It has to stop; Prosecutors must sue the law firm and its leaders.
Big Pharma disappears with a lot
Companies are not people; they do not decide. If "a company" harms people with products or services, the law must prosecute a person or persons. It is inappropriate to burden the company alone if the company has not decided. The CEO, CEO and COO must be accountable. The prosecution accused and did not block Wall Street executives for the crimes that caused the Great Recession. I am not referring to bad decisions, but to corrupt practices. Wall Street executives will continue to ruin lives and make huge profits. That's wrong! How can people commit crimes, collect big bonuses and stay intact?
Pfizer, Wells Fargo, a financial firm before 2008, is the poster boy of how people commit crimes but not pay penalties. If the law accuses companies of misconduct alone, business leaders have a natural incentive to take risks that may even jeopardize people's lives. Although executives do not develop products to kill them, they do know the tremendous profit potential of new breakthrough medicines, for example, without any disadvantages. That's the way Pfizer, Big Pharma!
Pfizer paid billions for his many misdeeds, but no executive was jailed. Several deaths related to Pfizer's heart valves involved the Food and Drug Administration (FDA). However, this did not prevent Pfizer from selling these valves. It took 300 deaths before Pfizer ceased production. By then, thousands of people had implants. By 1994, Pfizer had spent approximately $ 200 million settling related litigation.
Pfizer's sins continued in the 2000s. In 2009, it agreed to pay a record $ 2.3 billion criminal and civil liability for illicit advertising of certain drugs, American greed April 7, 2010 showed these crimes. Two of its subsidiaries pleaded To blame for an offense because Bextra was misused for the purpose of cheating or misleading. Pfizer's corrupt practices continued. In 2016, there were two big events. First, $ 784 million was paid to pay for underpaid Medicaid rebates. Second, the payment of $ 486 million was agreed for the settlement of a class action lawsuit Securities suit that it misled investors Celebrex and Bextras security. In May 2018, she agreed to pay $ 23.85 million to settle allegations that violated the policy Law on false claims "Paying Backs to Medicare Patients …" Pfizer had price, security, marketing and other misdeeds and paid billions in fines. However, the executives escaped from prison each time.
Large pharmaceutical fine worth billions, but nobody detained
The facts show that greed and lack of integrity permeate the culture of Pfizer and Big Pharma. Can we trust Pfizer or other pharmaceutical companies? Why does the FDA allow them to endanger the public with their aggressive and coercive tactics? Do you screen your lobbying? The Pharmaceuticals & Manufacturers of America $ 28 million for Pfizer's $ 11.5 million for lobby work in Washington in 2018. And Pfizer spent $ 1 million on Trump's opening concert. Are these the insurance premiums of Pfizer?
It's a shame that Big Pharma's crimes hurt so many people, while leaders and politicians benefit. What will Pfizer and others need to be in an ethical matter? The system tolerates their behavior. The problem is not their profit motive. I support companies in making profits, but not in lying, cheating and destroying lives.
Wells Fargo fined a billion dollars with a fine by no one
The Consumer Financial Protection Bureau (CFPB) fined Wells Fargo a $ 1 billion fine in 2018 for "conduct" [that] "Wells Fargo has violated the law and violated its clients by extending the mortgage lock extension and implementing a compulsory insurance program to increase customers' car loans, and the system has permeated the company." Did those responsible, whether they approve or disagree, have to pay a person or persons, but not a senior executive, not the CEO or the board member, $ 185 million to "expose the widespread illegal practice of secretly opening unauthorized deposit and withdrawal." Again, no person was imprisoned or fined for no systemic change.
Firms should retain limited liability but hold those responsible accountable
When we treat companies as human beings, serious disadvantages arise. First, it fuels the innate greed of the executives, which becomes apparent through the actions of Big Pharma and which offends the public. They break the law in the knowledge that the law will not punish them for taking hefty bonuses. Second, it drives lobbyists to bribe dishonest politicians to block necessary laws to protect the public. Third, prosecutors do not file charges against CEOs whose "support" they may need to re-elect. So they punish their companies instead. The umbrella effect is that people decide, but their businesses pay for their conscious choices that harm people and the environment. I repeat: I am not talking about bad decisions, but about unauthorized decisions.
Business is a unit that offers services to customers. While employees present these services and goods, they take various risks. That is normal. The economy is the only wealth-creating company in society. We must encourage companies to grow and create jobs. But we should recognize the business as a fortune creating vehicle driven by people. Companies should not receive benefits, pay taxes and pay fines only if the CEO, board members or other officers do so. The company's fine should send a message to the owners to remove the lead and return the bonus earned on fraudulent activity. We must punish one or more persons for the illegal actions of the company. Does this idea remove the limited liability of investors? No, it sees people in companies who decide and who should go to jail and pay fines for their crimes.
Proposals to eliminate the negative impact of treating companies as human beings
I support the role of a limited state in business and industry, few but applied rules, and leaders blamed for their illegal actions. The current status of limited liability companies is crucial. But the leaders decide, and the law must hold them accountable for their crimes, not just their businesses. Companies must pay fines for environmental and personal injury. But in any case, an elderly person or people in the company have to pay money and jail.
After investigating several corporate crimes, with only the company paying a fine, I do not know why those responsible avoided the jail sentence. That confuses me! The people in these companies saw violations and the leaders fired whistleblowers. Yet Pfizer, Big Pharma, Wells Fargo, Facebook's leader, saw that their companies were fined and they kept their rewards. They got big bonuses from their decisions until the government stopped them. Sometimes, as Wells Fargo did, executives accuse and dismiss low-level employees for the harmful results.
Facebook's $ 5 billion fine is a wake up call. We must call people to account for the crimes of their companies. Here are summary suggestions to do this:
Seven steps to fix the problem
- Do not break up big technology companies. Politicians want to dissolve big tech and other big companies. This is a bad idea because it does not take into account the actual problem. If we divide these companies, we multiply the problem. What is the problem? Non-responsible directors and executives. So we have to enforce existing laws. We must follow the principle that if we assign a collective responsibility to a company and blame it, we must also punish the CEO and the board. The CEO receives massive rewards for this job, and we must hold him and her accountable for the crimes of the company. They get the credit for the Boom, So it's only fair that they accept that Fault.
- Do not blame companies. That is absurd; Never fix a company by yourself. One or more people, the CEO, the board and other officers of the company did the wrong thing. Fine against the company only after charging a person or persons. And only to punish shareholders who have to remove the CEO and others and claim damages from them.
- Forced executives to repay premiums on drug sales for non-FDA approved purposes and other illegal profits. Managers would have less reason to force risky drug sales to achieve short-term gains. For example, Pfizer executives should pay back the bonus from Bextra's massive profits. The leaders of Wells Fargo profited from illegal accounts and other crimes. So they also have to pay back their bonuses.
- Get rid of corporate taxes and welfare. Companies should not pay taxes on their income. Taxers at their marginal rates for income and benefits they receive from their companies. Tax income, dividends and stock options exercised at the same tax rate. The principle here is to tax people, not the wealth-creating vehicle, the company.
- Prevent former members of Congress and White House staff from lobbying directly or indirect lobbying at a law firm for ten years after leaving office. Prison people breaking this rule. Prohibit them from presenting and voting on laws involving individuals and companies from whom they have or could benefit, either in cash or in kind.
Prohibition of advertising for pharmaceutical products unless the heading shows three things:
The FDA approves the drug for the advertised purpose.
Side effects with the same value as benefits.
Current problems related to the drug. So for Bextra, Condition reported problems.
Ask the doctors to explain their relationship with the pharmaceutical companies in their reception and in their offices. This relationship leads to a conflict of interest that can affect doctors' drug spending. It has in the past. So let's remove the temptation. Patients need to know.
It is absurd to punish a company for misconduct and not to burden a person in the company. I participated in several class action lawsuits against securities. Companies paid heavy fines for lying, but the CEO, the board, and others kept their jobs, and the law neither punished nor detained them. That is not right! Someone lied, this person has to pay. No wonder the public has a wrong opinion about the business.
Today, the left call for socialism and demonize the business. You see that corrupt executives get away with a lot, and their companies reward them with a lot of money. This is not normal The left does not know that small businesses are the main labor force in the economy. And the behavior of greedy rogues on Wall Street does not reflect either these small firms or the majority of firms. The left believes the government is the answer. But the government is unable, wasteful and part of the problem. Greedy, dishonest politicians protect rogue executives as they collect substantial campaign money and bribes.
We have to throw people who commit crimes out of business. And we need less government involvement in businesses with proper oversight and effective law enforcement when executives commit crimes. Economy drives the economy. It creates jobs, while governments destroy jobs with corporate taxes and stupid rules.