Public corporations grant their investors and executive management immunity against such charges unless it can be traced directly to their involvement and even then, most of the time someone is made into a scapegoat and hung. Much of this is out of necessity. The problem stems from privatizing the profits and socializing the losses; people want accountability.
I think the correct approach is if a corporation wants to be a c-corp, they need to pay 2\3rds profits through approved accounting mechanisms to non-management staff which can include things like company stock, and should include requirements about openness of the books with staff. The "Public" seldom owns a company, and I am sure the public is very interested in making sure other people are rewarded for their hard work vs investorship.
What you end up with is people have disposable income to invest in things they care about, and thus, the executive management is motivated not to do BS crap like this. It does make it more difficult to get large sources of capital together, but it also forces companies to the whim of people and investorship and employee's which is a much more tenable balance.
I think the correct approach is if a corporation wants to be a c-corp, they need to pay 2\3rds profits through approved accounting mechanisms to non-management staff which can include things like company stock, and should include requirements about openness of the books with staff. The "Public" seldom owns a company, and I am sure the public is very interested in making sure other people are rewarded for their hard work vs investorship.
What you end up with is people have disposable income to invest in things they care about, and thus, the executive management is motivated not to do BS crap like this. It does make it more difficult to get large sources of capital together, but it also forces companies to the whim of people and investorship and employee's which is a much more tenable balance.