Explain criminal prosecutions hurt innocent shareholders, Operation Management

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Respondeat superior is the theoretical basis for holding companies criminally liable for actions of their employees. Companies oftentimes have little defense against prosecution. Critics of this system argue the government should avoid criminal prosecution against the company, and only go after individual officers and employees. They argue criminal prosecutions only hurt innocent shareholders of the company, and that it is unjust to hold company criminally liable for actions of a few employees. Do you agree or disagree, and why?


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