Deferred prosecution agreement

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Deferred prosecution agreement

Deferred prosecution agreement, this is a process whereby the prosecution pursues another means of making a cooperation pay for its mistakes through other available means as opposed to traditional litigation in courts. Deferred prosecution agreement can be seen in the case of fraud in corporate; a deferred prosecution agreement may be applied where the firm will have to implement reforms, carry out thorough investigations and finally payment of fines. Once the corporations are through with the set terms then the charges will be dropped and if the same is not done, the prosecution will resort to the normal process of litigation.

This process has positive results to the government and the corporation. The firm is given a chance to redeem its name and reputation while the government gets revenue from the fines the corporation is paying and from the continued successful business of the firm. There are several advantages since with deferred prosecution agreement the corporation stands a chance to survive by avoiding bad press that comes with trials hindering business. Another advantage is that the company will stay afloat and continue with business for they will avoid indictment that will lead to loss of business and employment for the workers. Although it is advantageous to the firm, there are also disadvantages to the company. The company pays up fines in millions of dollars; the payment of fines has a negative impact on the company’s finances.

The companies involved in misconduct should be made liable and pay for their mistakes if that is not done, the mistakes will end up costing the consumers of that company’s services or goods. With that said, the government is not exploiting such companies. All companies are liable for the actions of its employees in that capacity; hence, it is right for the government to punish a corporation for actions of its staff. The company has a duty to ensure its empolyees work within a set framework and regulations. Corporate criminal prosecution is necessary because the companies have to pay for their mistakes that have a negative impact on the consumers. If prosecution is not done, the consumers will face the negative impacts that result from such mistakes.