Structured deniability lets top executives escape liability for corporate crimes

Evidence

There are several reasons that prosecutors may be reluctant to go after the corporate upper echelon. The assemblage of corporate legal power is highly intimidating. If deniability for profitable transgressive practices is built into the corporate governance structure of a company, top executives can easily absolve themselves of responsibility. Federal officials justify their reluctance to prosecute the top management of prominent banks by pointing out that it could set in motion events that cripple the economy. — Albert Bandura, Moral Disengagement, 1502

Categorization

• QUESTION: How exactly does ‘deniability built into the corporate governance structure’ work mechanically — who designs that deniability and how is it legally protected?