The stereotypical conception of compliance is reinforced by some of the fundamental assumptions about what the primary objectives of a corporation should be and about how a corporation should accomplish those objectives. According to the prevailing theory of corporate structure, a corporation exists for the sole purpose of earning profits for its shareholders, and all of its actions are to be directed toward that end. If compliance with the law is not an inherently profit making activity, it is to be treated as a constraint on the corporation's efficient operation. According to this view, compliance will generally be considered a burden that inhibits the corporation's ability to earn profits, and it should be discouraged except to the minimum extent necessary.
Roni A. Elias,
Should Regulatory Compliance Be a Goal or A Constraint for Health Care Companies? Finding Effective Methods to Assure Compliance with the Federal Anti-Kickback Statute and the False Claims Act,
Fla. A&M U. L. Rev.
Available at: https://commons.law.famu.edu/famulawreview/vol12/iss2/5