There's always plausible deniability so that if anybody does take the fall it's probably going to be some mid level suit that was 'just following orders.' I'd rather that liability starts with the CEO and Chairman. You need to make sure executives cannot simply hide behind fallguys.
You then create a top-down incentive for these people to genuinely make sure everything is on the up and up. The biggest problem is that this probably creates a strict cap on how large a single corporation can grow, which sounds much more like a feature than a bug.
This is all well and good to say, but impossible to implement within our current system. That's what's so depressing about it. And by 'impossible' I grant its theoretically possible, just not in practical terms. Of course the other side of the coin is that even if it was implemented, then prosecutors, and hence government, would now have this new power over CEOs and it wouldn't be long before some corrupt politician got in office and used it corruptly.
I prefer jail time for companies. The entire operation has to shut down for a set period of time. No money going in or out. No one can work. No one can open their laptop. No one can go in the office. No one can discuss business. No new contracts signed.
If corporations have the same rights as humans, make them suffer the same consequences.
The effective outcome of corporate jailtime is that the company is instantly destroyed. There are no companies that would survive being shit down for years. Shareholders would be left with nothing.
And if people would be out of jobs - good. It would stop people from working for companies that don't provide transparency into the legality of their operations.
