Corporate Quote by Mary Schapiro
“When the SEC needs to be deterring corporate wrongdoing, the 'penalty pilot' program sends the wrong message.”
About This Quote
Source Speech: Congressional Hearing, US SEC, 2022
The penalty pilot program may undermine deterrence by sending a lenient signal to corporations.
In simple terms: Lenient penalties can weaken deterrence.
Key Takeaway
Ensure penalties truly deter wrongdoing.
Themes
regulation
ethics
corporate behavior
Mood
critical
concerned
Type
policy
analysis
When to use this quote
- compliance training
- corporate governance
- legal reform
Key Concepts
deterrence theory
policy design
Questions to Reflect On
- How can penalties be calibrated to maintain deterrence?
- What alternative measures could reinforce compliance?
A Different Perspective
Weak penalties can be perceived as permissive, reducing impact.
