Federal Sentencing Guidelines

On May 1, 1991, as an extension of the Sentencing Reform Act, the United States Sentencing Commission submitted the Federal Sentencing Guidelines for Organizations (FSGO) to the Congress. It is a set of standards that govern the sentences the federal judges impose on organizations convicted of federal crimes. Enacted on November 1, 1991, core to the guidelines was the Commission's intent to "prevent and deter organizational wrongdoing" through its design of the organizational sentencing guidelines. These guidelines describe the elements of an organization's compliance and ethics program that are required to be considered for eligibility for a reduced sentence if convicted. Revisions to the Federal Sentencing Guidelines for Organizations that took effect in November 2004 contain requirements for companies to heighten their efforts to detect and prevent violations of law, and to implement efforts to establish an ethical culture.

The amended guidelines stated...