“Over the last decade, since the passage of the Sarbanes-Oxley Act in 2002, publicly traded corporations have poured significant resources into their compliance programs to prevent wrongdoing, or to at least be an early warning system for what might become a problem. Companies know that it is always better to self-report a violation than to have a government agent come knocking on the door. [But that] buildup in corporate internal controls may lead to a false sense of security that the company will be able to ferret out internal wrongdoing before it burgeons into a serious concern. So there is often an urge to make the obligatory offer of the olive branch of cooperation when an accusation of wrongdoing arises accompanied by an assurance that the company had determined it did nothing wrong.”
— From Lessons From the Glaxo Case in China by Peter J. Henning in the New York Times DealBook.
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