lecture 8 Flashcards
white collar crime
Sutherland’s definition of white-collar crime (3 key elements)
- conspiracies by members of the wealthy class
- use of their position in commerce and industry
- for personal gain
limitations of Sutherlands definition of corporate crime
- assumes only the wealthy class can commit white-collar crime
- assumes it’s only for personal gain
occupational crime
crimes done by individuals within organizations with access because of their position predominantly done for personal gain
corporate crime
crimes committed on behalf of the corporation, primary benefit is to the company
corporate crime (examples, harm, extent)
examples: environmental violations, securities fraud, and unsafe working conditions
harm: >2 = people murdered in America every her
3 = number pf Americans who die each hour due to unhealthy conditions in the workplace
economic, environmental, and physical
extent: corporate crime is widespread, with billions of dollars lost annually. it often affects public trust in institutions and can cause long-term societal harm
industry variation - market structure
competition - in an industry where there is intense competition, there’s going to be an inclination for organizations to do whatever it takes to win
monopolies - allowed to do whatever they want, one person controls who controls everything, no checks and balances, allows corporation to engage in white collar crime
drive for profit
- being profit-driven isn’t inherently bad; it’s a necessary component of capitalism - what leads to innovation - what leads to please the consumer
- profit over people leads to unethical behavior
structure of organizations - long-standing, hard to change
- how the organization is set up; not about the [people but the organization itself
- diffusion of responsibilities: allows for a layer of predictions; more likely to engage in crime
- lack of checks and balances: one person runs everything, no one checks numbers or what they’re doing, allows people in higher roles to do whatever they want
pay/reward structures: The bottom 10% is fired; more likely to engage in crime to keep their job
culture of organizations - learned
- values, beliefs, norms: often dispersed from the top down
- shaped by and influences structure: competition
what is white collar crime
crime committed by individuals or organizations in positions of trust or authority, typically for financial gain 9ex: fraud and embezzlement)
what is the embezzlement triangle
the embezzlement triangle (by Donald crease) includes motivation, opportunity, and rationalization, which contribute to embezzlement
motivation: financial need or temptation
opportunity:n access to funds and lack of oversight
rationalization: justifying the crime (ex: feeling underpaid or believing the company owes them
what is the type-fold typology in WCC
Sutherlands type-fold typology classifies white-collar crime into two main categories: occupational and corporate crime
what is the estimated cost of white-collar crime
the cost of white-collar crime is substantial, with estimates suggesting that it costs the U.S. economy hundreds of billions of dollars annually - far exceeding the costs of street crime
what are some of the major threats related to white-collar crime according to the FBI
tje FBI identifies key threats including corporate fraud, Ponzi schemes, cybercrime, and financial fraud in sectors like healthcare, banking, and securities
how prevalent is white collar crime
white collar crime is extremely prevalent, with classic and contemporary estimates suggesting that its scope is massive, impacting individuals, businesses, and governments
