The issue is the fine is paid by the company and not the people who actually did the crime. As a result, the CEO, the board and the other players will all get big fat bonuses and the company will take a hit. When the company takes a hit one thing happens the people at the bottom of the chain get fired, not the decision makers, not the people who pushed this policy but some fucking engineer that just had his first kid and thought being and engineer at HP was a great job. The system is setup so that people who screw up never pay but the people who have nothing to do with the problem always pay the bill. If the idiots at the top actually had some accountability I think we'd see a lot different choices being made, but that is just a pipe dream in the world we live in.
The CEO will pay attention to problems that cost them money.
A lot of corporate bad behavior would be fairly easy to stop by making it a cost rather than a benefit. Things like an improper denial, you owe 2x the amount. Late payment, you owe say +20% plus a high interest rate on the delay. Fairly routine things you have a clock that's tolled while the other party is actually responding to requests for information, not transit time. (From when they receive it to when they respond. Thus they'll do everything electronic unless original signatures are required.) Clock runs out, that's considered an approval.
The CEO will pay attention to problems that cost them money.
True, but only when the cost is greater than the profit from doing whatever it is you don't want the business to do. From example, if paying a bill late comes with a 20% premium, but not paying it increases profit by 21%, then it's better to pay late.
In the system of modern business it's really hard to see why things happen, so simple rules very rarely work. People are hugely creative when it comes to dreaming up ways around them.
