What did the President know and when did he know it? Former Senator Fred Thompson wrote those lines, when he was a staffer on the Senate Watergate Committee. His boss, Senator Howard Baker, then uttered them during the Watergate Hearings. Since that time, these two lines have been a mainstay of any scandal or corruption investigation because the cover-up is almost always perceived to be worse for the participants than the underlying crime.

I thought about those questions when I read about the recent remarks of Volkswagen Chairman Hans Dieter Pรถtsch and Chief Executive Matthias Mรผeller in a Press Conference given in Wolfsburg Germany last week. Pรถtsch explained โ€œThere was not one single mistake, but rather a chain of errors that was never broken.โ€ However, he stressed that it was โ€œthe misconduct and shortcomings of individual employeesโ€ coupled with a โ€œmind-set in some areas of the company that tolerated breach of rules.โ€

Thomas Fox has practiced law for over 40 years. Tom writes the daily award-winning blog, the FCPA Compliance and Ethics blog and founded the Compliance Podcast Network. Tom leads the discussion on AI in...