The Federal Sentencing Guidelines for Organizations (FSGO) was approved by Congress in November 1991. The FSGO guidelines were based off of the six principles of the Defense Industry Initiative on Business Ethics and Conduct (DII), and codified into law incentives to reward companies that actively discouraged misconduct by establishing ethical and legal compliance programs. These compliance programs must meet defined standards. Companies often have to worry about penalties suffered as a result of their employees engaging in misconduct. Provisions to the Federal Sentencing Guidelines for Organizations have been made to mitigate penalties for organizations that have effectively made efforts to discourage misconduct by establishing effective ethical compliance programs. On the other hand, severe penalties may be suffered by companies that have not made the same effective efforts. The primary purpose of the FSGO is to encourage companies with rewards to effectively take action to prevent misconduct, not simply take a legal reactive approach to misconduct. Companies must develop corporate values, enforce its code of ethics, and make effective efforts to prevent misconduct. - See more at: https://www.subjectmoney.com/definitiondisplay.php?word=Federal%20Sentencing%20Guidelines%20for%20Organizations%20(FSGO)#sthash.D4EXD2k2.dpuf