Gov't Oversight

Essay by noagendaUniversity, Bachelor'sA+, August 2004

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Without government oversight in corporate finances executives in positions of power and influence will continue to cheat the system. Billions and billions of dollars are lost or slip through the cracks because of the lack of oversight. Not only is more oversight needed but stronger penalties need to be imposed.

"White-collar crime is costing America an estimated $200 billion per year, about 50 times the cost of street crime. According to Business Ethics editor Marjorie Kelly, Lockheed Martin has 63 violations and alleged violations, yet its 1999 government contract awards totaled $14 billion. Companies with more than one criminal conviction or civil judgment in three years should face contract suspensions or debarments, says the Project on Government Oversight." These numbers should come to a shock to most people but unfortunately they don't, why? The reason why is that these are not your average "street thugs" these are highly educated top executives that are planted firm in some of the nations corporations.

While a majority of them perform their jobs in accordance with the regulations and laws, there are those that become overcome by greed and power. Without direct oversight from the government these few can cause considerable damage to the economy, pensions, and the success of the business.

Is a company who manipulates the books just a guilty as a company who moves some of the business offshore? While there can be different scenarios I believe this is where oversight by the government would come in handy. The first place to start is preventing members of Congress who take immense amounts of corporate money to finance their campaigns to allow those corporations to get away with. Corporations and their accountants have taken advantage of loopholes and lax regulations to inflate their earnings statements, and sure they have used their...