Bernie Ebbers,the former CEO of WorldCom,on trial for securities fraud and other crimes,offered as his defense that he did not know what his officers were doing.

Question

Quizplus · Accepted Answer

The defense that a CEO does not know what their officers are doing is not a valid defense as CEOs can be held liable for the actions of their employees under the principle of respondeat superior. This principle holds that an employer can be held responsible for the actions of their employees if those actions are done within the scope of their employment. Therefore, Ebbers can be held liable for the actions of his employees, regardless of whether he knew what they were doing or not.

Bernie Ebbers,the Former CEO of WorldCom,on Trial for Securities Fraud