About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline



75 Duke L.J. 1 (2025-2026)

handle is hein.journals/duklr75 and id is 1 raw text is: 












Duke Law Journal


VOLUME 75                      OCTOBER 2025                         NUMBER 1




            ILLEGAL CORPORATE CULTURES

                          ELISE BERNLOHR MAIZELt

                                  ABSTRACT

       Culture is a powerfulforce in corporate compliance. Corporate culture
    shapes  how  employees  behave, dictating whether, when,  and how  they
    follow the law. Cases arising out of cultural failures often involve public
    harm   plane crashes, poisoned rivers, tainted cancer drugs, and collapsed
    mines. Before these awful outcomes, however, the corporations that caused
    these  harms  fostered cultures that permitted  the  disregard of  legal
    commands and public commitments. Managers disparaged safety
    regulations. Messages about profits and production drowned out messages
    about compliance  and safety. Yet, there is a gap between all we know about
    the power  of culture and our understanding of corporate law  doctrine's
    power  to change it.

        This Article makes sense of thatgap and offers a theoretical framework
    to bridge it by arguing that culture plays a more central role in the essential
    elements  of  oversight doctrine  than  scholars  have  yet recognized.
    Corporate  directors and officers have fiduciary duties that require them to
    oversee  a firm's compliance with law. Through   the Caremark  doctrine,




Copyright © 2025 Elise Bernlohr Maizel.
    T   Assistant Professor, Michigan State University College of Law. I am indebted to Jennifer Arlen,
Richard Brooks, Sandeep Dhaliwal, Brittany Farr, Chris Hampson, Vice Chancellor J. Travis Laster, Ann
Lipton, Karl Lockhart, Donald Langevoort, Dorothy Lund, Geeyoung Min, Veronica Root Martinez,
Elizabeth Pollman, Justin Simard, Quinn Yeargain and the participants of the 2025 National Business
Law Scholars Conference, the 2025 ComplianceNet conference, the 2024 Northeastern University Junior
Scholars Conference, New York University Lawyering Scholarship Colloquium, and the faculty
workshops at Elon University School of Law and Michigan State University College of Law for helpful
comments and conversations on various drafts of this article. Erica Zhang provided excellent research
assistance. Thanks also to the excellent editors ofDuke Law Journal for insightful comments and careful
edits.