Business Criminal Law: A Primer for Management and Economics

Description

This textbook deals with business criminal law from the perspective of Germany, Austria, Liechtenstein and Switzerland. It primarily addresses students in business and economics (master's programme) as well as business practitioners, but is also meant for lawyers and law students. As criminal law legislators exert considerable influence on economic life, raising and growing awareness in the area of criminal law seems compulsory for future managers and executives. This textbook approaches the legal field less normatively and rather in a practical and entrepreneurial way. Its contents are based on the master level class "Business Criminal Law" at "MCI | The Entrepreneurial School" taught by the author. This textbook has been recommended and developed for university courses in Germany, Austria and Switzerland. Preface Country Code Abbreviations Selected Textbooks for Legal Studies on Business and Economic Criminal Law Austria Germany Switzerland Translations of Legal Codes, Statutes, Ordinances or Other Legal Materials Austria Germany Switzerland Contents List of Abbreviations (Selections) Part I: Introduction 1: Approaching the Phenomenon: Business Crimes in Space and Time 1.1 Understanding the Relationship Between Crime and Economics 1.2 So Close Yet So Far Volkswagen (VW) Diesel Scandal-Case Collapse of a Textile Factory-Case Dam Breach Disaster in Brazil-Case 1.3 Time (Doesn´t!) Heal All Wounds Toxic Building Material-Case Burning Drinking Water-Case 1.4 Purposes and Structure of the Book Literature 2: Evolution of Business Criminal Law 2.1 Industrialisation Electric Power Theft-Case 2.2 Risk Society Vajont Dam Burst-Case Bhopal Gas Accident-Case 2.3 Globalisation and Digitalisation ``Operation Paper Castle´´ Gold Laundering-Case Vinci-Case Silk Road-Case Facebook-Cambridge Analytica Data Breach-Case 2.4 Global Economic Crisis of 2008 Subprime-Case 2.5 Global Health Crisis (Covid-19 Pandemic) Miracle Cure-Case Literature 3: Notion of Business Criminal Law 3.1 Terminology 3.2 Defining Business Criminal Law 3.2.1 Offender Related Definitions Profile of the Average Business Criminal 3.2.2 Offence Related Definitions How Big Is the Damage of Business Crime? 3.2.3 Interim Result 3.3 Characteristics and Motivation 3.3.1 Characteristics Characteristics of Business Crime 3.3.2 Motivation 3.3.3 Companies as Victims? 3.4 The Role of Criminal Law Enron and WorldCom-Case Parmalat-Case Prevention Strategies Literature Part II 4: Sources of Business Criminal Law 4.1 Preliminary Remarks 4.2 Criminal Code Case Law - A Legal Source? 4.2.1 General Section 4.2.2 Specific Section 4.3 Criminal Law Beyond the Criminal Code Examples for Cantonal Criminal Law: 4.3.1 General Rules 4.3.2 Specific Rules 4.4 Constitutional Law Constitutional Criminal Law Principles 4.5 European Law 4.5.1 European Integration and Criminal Law How Does the EU Involve Itself in Criminal Law Making? 4.5.2 European Perspective 4.5.3 National Perspective Negligence Offences 4.5.4 Corporate Social Responsibility 4.5.5 Recent Developments 4.6 International Law Ogoni Nine-Case Yalisika Case 4.6.1 International Criminal Law The Court Proceeding Against I.G. Farben Two Crimes Against Humanity China National Petroleum Corporation (CNPC)-Case 4.6.2 Transnational Business Criminality 4.7 Soft Law The UN Global Compact Lahmeyer International-Case The Oversight Board of Facebook and Instagram 4.8 Human Rights Law Important Fundamental Rights in BCL Toxic Emissions (Ilva)-Case Literature 5: Basic Knowledge on (Business) Criminal Law and Procedure 5.1 Preliminary Remarks 5.1.1 Conceptualising Criminal Law and Justice 5.1.2 Interpreting Law 5.2 Criminal Law 5.2.1 Structure of Criminal Provisions 5.2.1.1 Crimes, Offences, Misdemeanours and Contraventions 5.2.1.2 Types of Offences 5.2.2 No Punishment Without Law Coin-Machine-Case 5.2.2.1 No Analogous Interpretation Hydrochloric Acid as a Weapon 5.2.2.2 No Retroactivity 5.2.2.3 No Customary Law 5.2.2.4 Principle of Certainty German Law on Beef Labelling 5.2.3 No Punishment Without Culpability 5.2.3.1 Types of Subjective Elements Example: § 242 StGB-DE: Theft 5.2.3.2 Criminal Capacity Minimum Ages of Criminal Responsibility: 5.2.3.3 Awareness of the Unlawfulness of the Conduct 5.2.3.4 Grounds of Excuses Example: Obstruction of Prosecution or Punishment (§ 258 StGB-DE) 5.2.4 Theory of Elements of Crime 5.2.4.1 Introduction 5.2.4.2 Objective Elements Example: Embezzlement Example: Decisive Factor The Charges Against the US Tobacco Companies Embezzlement 5.2.4.3 Subjective Elements Example: Damage to Property (§ 125 StGB-AT) 5.2.4.4 Unlawfulness (Justification) Self-Defense-Case Foreign Trade and Payments Act (AWG) of Germany Danger to the Workplace-Case Bilge de-oilers-Case 5.2.4.5 Culpability 5.2.5 Attempt and Preparation Example: In the Process of Robbing a Bank Example: Mere Preparation 5.2.5.1 Criminal Liability of the Attempt 5.2.5.2 Withdrawal from the Attempt 5.2.6 Perpetration and Participation Tripartite System vs. Unitary Model 5.2.6.1 Perpetrator 5.2.6.2 Instigation 5.2.6.3 Aiding and Abetting 5.2.7 Commission and Omission 5.2.8 Cumulative Charges and Convictions 5.2.9 Criminal Sanctions for Individuals and Amount of Penalties 5.2.10 Statute of Limitations Example: Asbestos Poisoning 5.2.11 Criminal Jurisdiction Fire in Factory-Case Example: Bribery Offences 5.3 Criminal Procedure 5.3.1 Principles of Criminal Procedure 5.3.1.1 Judge and Prosecutor 5.3.1.2 Defendant and Defence Counsel 5.3.1.3 Procedure 5.3.2 The Course of the Criminal Proceeding 5.3.2.1 Preliminary Investigation Bernie Ecclestone-Case 5.3.2.2 Main Procedure 5.3.2.3 Legal Remedies 5.3.3 Reporting an Offence: Right or Obligation? 5.3.4 Rights of the Accused Person 5.3.5 Rights of the Witness Literature 6: Criminal Liability Concepts for Entrepreneurs and Companies 6.1 Preliminary Remarks 6.2 Perspective of the Individual 6.2.1 Collective Crime and Individual Responsibility Controlling the Offence Perpetration by Means 6.2.2 Representative Liability Sources of Law 6.2.3 Delegation of Duties 6.2.3.1 Types of Delegation 6.2.3.2 Limits of Delegation 6.2.3.3 Delegable Tasks Examples of Non-delegable Duties Expressly Provided for by Law 6.2.3.4 Performing the Delegation 6.2.4 Liability of the Superior and Guarantor Status The Compliance Officer as Guarantor Basic Responsibilities of a Superior Basic Limits of Liability for a Superior 6.2.5 Organisational Negligence 6.2.5.1 Essentials on Due Diligence Cura in Custodiendo Cornerstones of Corporate Due Diligence, As Shown in Fig. 6.1: 6.2.5.2 Addressees of Supervisory Duties and Due Diligence Diesel Emissions Scandal: Duty of Care 6.2.5.3 Implementation Strategies (Preview) 6.3 Perspective of the Company 6.3.1 Criminal Liability Models 6.3.1.1 Switzerland (2003) Unknown Driver-Case Alstom Network Schweiz AG-Case 6.3.1.2 Austria (2006) 6.3.1.3 Liechtenstein (2011) 6.3.1.4 Germany (2021) 6.3.2 Sanctions Against Companies 6.3.2.1 Monetary Sanctions 6.3.2.2 Confiscation and Seizures 6.3.2.3 Interdictions and Other Sanctions 6.4 Professional Conduct and Criminal Liability Literature Part III 7: Operational Risks 7.1 Preliminary Remarks 7.2 Fraud Sources of Law 7.2.1 Elements of the Crime Special Feature of Switzerland (Art. 146 StGB-CH): 7.2.2 General and Specific Cases of Fraud 7.3 Embezzlement Sources of Law 7.3.1 Elements of the Crime Duty of Care Related to Assets of Another Person 7.3.2 Flexible Applicability Siemens Enel-Case 7.3.3 Black Funds 7.4 Corruption Sources of Law 7.4.1 Elements of the Crimes 7.4.1.1 Accepting Benefits 7.4.1.2 Taking Bribes 7.4.1.3 Granting Benefits 7.4.1.4 Giving Bribes 7.4.1.5 Other Offences (Selection) 7.4.2 Immoral or Unlawful? Lockheed Aircraft Corp.-Case 7.4.3 Risk Management 7.4.4 Thematic Boundaries 7.4.4.1 Accepting Gifts Differing Guidelines in Large Companies 7.4.4.2 Sponsorship 7.4.4.3 Lobbying 7.5 Money Laundering Sources of Law 7.5.1 Elements of the Crime 7.5.2 How Does Money Laundering Work? 7.5.3 Trends in Legislation 7.5.4 Anti-Money Laundering Strategies Suspicions and Suspicious Facts 7.6 Cybercrimes Sources of Law 7.6.1 Shaping the Crime Context 7.6.2 Typology 7.6.3 Damage to Electronic Data 7.6.4 Fraudulent Misuse of Data Processing 7.6.5 Unlawful Use of a Computer System 7.6.6 EU Data Protection Law (GDPR) 7.7 Capital Market-Related Offences Sources of Law 7.7.1 Shaping the Crime Context 7.7.2 Exploitation of Insider Information 7.7.3 Price Manipulation 7.8 Competition Offences Sources of Law 7.8.1 Shaping the Crime Context 7.8.2 Criminal Relevant Advertising 7.8.2.1 Misleading Advertising (Para. 1) 7.8.2.2 Criminal Progressive Customer Advertising (Para. 2) 7.8.3 Bribery in Commercial Practice 7.9 Cartel Offences Sources of Law 7.9.1 Shaping the Crime Context 7.9.2 Competition Restricting Agreements 7.9.3 Abuse of a Dominant Position 7.10 Accounting Offences Sources of Law 7.10.1 Shaping the Crime Context FlowTex-Case 7.10.2 Trends in Legislation Wirecard-Case 7.10.3 Untenable Representation of Fundamental Information Concerning Certain Corporations 7.10.4 Untenable Accounts of Auditors of Certain Corporations 7.11 Insolvency Offences Sources of Law 7.11.1 Shaping the Crime Context 7.11.2 Delaying the Commencement of Insolvency Proceedings 7.11.3 Other Offences 7.12 Secrecy Protection Sources of Law 7.12.1 Shaping the Crime Context Illegal Secrets 7.12.2 Breach of Trade Secrecy 7.12.3 Industrial Espionage 7.12.4 Whistleblowing Literature 8: Product and Service Risks 8.1 Criminal Product Liability Bus-Case Glycol Wine Scandal of 1985 Coburg Meat-Case Monza Steel-Case Ice Rink-Case 8.1.1 Questions on Causality and Negligence Contergan-Case Leather Spray-Case Spanish Oil-Case 8.1.2 Criminal Food Law 8.2 AI Product and Service Risks 8.3 Collective Board Decisions Majority Decisions 8.3.1 One-Vote Majority Variant 2 8.3.2 Majority of More than One Vote Variant 3 8.3.3 Abstention from Voting 8.4 Environment, Business and (Criminal) Law Major Fire at Schweizerhalle-Case 8.4.1 Trends in Legislation 8.4.2 Water Pollution Sources of Law Germany: ``Without Authorisation´´ 8.4.3 Illegal Handling of Waste Sources of Law Trafigura-Case Example: Asbestos Literature 9: Logistical Risks 9.1 Road Traffic Liability 9.2 Transport Industry Liability Semi-Trailer-Case 9.3 Supply Chain Risks Ever Given-Case 9.3.1 Current Trends in Legislation 9.3.2 Concerns Related to These Legislative Trends 9.4 Self-Driving Vehicles Six Categories of Automated Driving 9.4.1 Current Trends in Legislation California Autopilot Requires Driver´s Full Attention Autopilot Relies on Driver´s Control 9.4.2 Questions of Responsibility Literature Part IV 10: Compliance 10.1 Introduction 10.2 Terminology 10.2.1 Compliance and Business Organisation 10.2.2 Legal Background Compliance Management Structure: Defining Features 10.3 History of Compliance 10.3.1 The United States of America Evaluation: Central Issues 10.3.2 The United Kingdom Cornerstones of Compliance Measures According to the Guidelines of the UK Department of Justice 10.3.3 International Developments 10.4 Aims and Effects 10.4.1 Prevention of Crime Earthquake-Case 10.4.2 Avoiding Criminal Liability 10.4.3 When and Why Do Businesses Deal with Compliance? 10.4.4 Creating a Compliance Culture What Are the Five Major Sins of Compliance? 10.5 Compliance Risks 10.5.1 What Is Risk? Top 12 Compliance Risks 10.5.2 Identification of Risks Risks According to Their Causation 10.5.3 Dealing with Risks A Risk Strategy Can Be Built Like This 10.6 Essentials on Compliance Management 10.6.1 Distribution of Competences Organisation and Delegation of Compliance Related Tasks 10.6.2 Compliance Programs and Measures Written Rules of Conduct Managing Compliance Related Documents 10.6.3 Communication 10.6.4 Monitoring 10.6.5 Documentation 10.7 Two Final Examples 10.7.1 Compliance for Small Businesses and Start-Ups: The Hamburg Model 10.7.2 Compliance for Large Companies: The Siemens Model 10.7.2.1 Commitment from the Top and from the Middle 10.7.2.2 Organisation 10.7.2.3 Prevent 10.7.2.4 Detect 10.7.2.5 Response Literature 11: Internal Investigations 11.1 Introduction Zero Tolerance Policy 11.2 Admissibility 11.3 Terminology 11.4 Limits of Internal Investigations and Legal Background 11.4.1 Civil Law 11.4.2 Labour Law 11.4.2.1 Individual Perspective Sensitivity in Reporting 11.4.2.2 Collective Perspective 11.4.3 Data Protection Law 11.4.4 Fundamental Rights Lüth Judgement 1958 11.5 Course of Internal Investigations (Overview) 11.5.1 Phase 1 Questions that Need to Be Answered When Defining the Investigation Strategy The Objectives of Internal Investigations Are: Siemens Scandal-Case 11.5.2 Phase 2 11.5.3 Phase 3 11.6 Interviews: Interrogation of Employees 11.7 Inspection of Data Files and E-Mails 11.8 Video Surveillance 11.9 Litigation-PR Thomas Middelhoff-Case Litigation-PR Should 11.10 Practical Examples 11.10.1 VW Diesel Scandal 11.10.2 FIFA Scandal 11.10.2.1 Internal Investigations 11.10.2.2 External Investigations Literature Index