Marc Jacobs Quoted in HR Magazine

In the cover article for the August 2005 issue of HR Magazine entitled "Executive Discipline," Marc Jacobs is quoted in a side-bar piece ("Executive Crime and No Punishment") that notes: "Executive misconduct can come at a heavy price—and that’s without taking into account bad publicity, which may not be a factor since top-level misdeeds often are covered up. The Association of Certified Fraud Examiners, in its 2004 Report to the Nation on Occupational Fraud and Abuse, found that owners and executives committed 12.4 percent of reported fraud, a percentage that belies its true impact on organizations. Bigwig misfeasance costs organizations on average $900,000 per year—more than six times the losses attributed to manager misconduct, and 16 times more than employee fraud. Yet most of it is hidden from public scrutiny. “No one wants the publicity, so there is a huge incentive to resolve it quietly,” says Marc Jacobs, a partner with Seyfarth Shaw in Chicago. In the end, the company’s reputation is untarnished while the bad guy is sent packing, only to emerge with a new company somewhere else."