According to the U.S. Corporate Sentencing Guidelines, the degree of blame in sentencing when an employee commits a crime is determined by:

• A. The severity of the crime
• B. The strength of the firm’s ethical policies
• C. The employee’s position
• D. The company's age

Answer: (B)

The key idea here is that corporate blame under the U.S. Corporate Sentencing Guidelines is tied to how well the company prevents and detects misconduct through its ethics and compliance program. If a firm has strong, well-implemented policies—clear rules, ongoing training, effective internal controls, independent auditing, safe channels to report concerns, and prompt investigation and remediation—the organization earns credit and can receive lower penalties because it demonstrates a real commitment to stopping wrongdoing. Conversely, weak policies signal greater organizational responsibility for the misconduct. The employee’s role or rank and the company’s age aren’t the main determinants of blame; the existence and effectiveness of the firm’s ethical policies are what drive sentencing considerations.