Gm Corporate Crime Examples

A.) An example of corporate crime is when General Motors (GM) hid the fact that some of their cars contained faulty ignition switches that could shut off the car while it was being driven, disabling the airbag, power steering and power brake. This ignition-switch defect was tied to at least 124 deaths. In 2015, the corporation admitted that their employees knew about this problem a decade before they sent out recalls, which is the basis for the charges.

B.) The four characteristics of corporate crimes are applicable to this example.

None of the GM executives are being charged individually in this case. Although criminal charges against the corporation were issued regarding the faulty ignition switches, GM also settled a civil class action suit

involving nearly 1,400 cases of death or serious injuries around the same time. This case involved other recalls as well.
General Motors CEO Mary Barra showed remorse for the company’s actions by telling employees that "People were hurt and people died in our cars." She made it clear that GM had taken responsibility for the deaths of their customers, but since she made no effort to step down, it is safe to say that she does not believe she is to blame.

The families of those who were injured or killed in car accidents are willing to be compensated a total of $600 million instead of suing GM executives.

I had no idea that GM had committed a corporate crime until I started researching this topic. Even though people died because GM hid information, it was not headlined in the news, leading me to believe that the public did not take interest in this case.

C.) The victims were those who were injured or killed while driving cars manufactured by General Motors that contained faulty ignition switches. The families of these people would also be considered victims as well.

D.) A car accident caused the victims to be injured or lose their lives. Their car shut off while it was being driven due to an ignition-switch defect, which would disable the airbag, power steering and power brake. Without these functions, the car became much more

dangerous.

E.) The corporation had to pay a $900 million fine to settle the charges and they were given three-years probation by the Justice Department. GM also had to hire someone to monitor their recall process to ensure they comply with federal safety reporting regulations. Also, the company has agreed to pay the maximum possible fine of $35 million to settle civil charges with federal safety regulators.

F.) I do not think the punishment was severe enough. According to an article by Drew Harwell from The Washington Post, the $900 million fine was less than a third of GM’s annual profit. Corporations that knowingly put people’s lives in danger should be fined so heavily that they go into bankruptcy. Also, withholding this piece of information cost over 100 lives, and not a single executive of the company will serve time in jail. Criminal charges need to be brought against the heads of companies who commit corporate crimes.