Organisational Crime Flashcards

1
Q

Marshall B. Clinard and Richard Quinney

A

First made distinction between occupational crime and organizational crime

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2
Q

Marshall B. Clinard and Peter Yeager

A

Study of corporate law-breaking

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3
Q

Diane Vaughan

A

When given a chance to make decisions lower-level managers will tend to act not in the interest of the firm, but in the interests of their departments

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4
Q

John E. Conklin

A

The delegation of responsibility and unwritten orders keep those at the top of the corporate structure remote from the consequences of their decisions and orders, much as the heads of organized crime families remain untouchable by law

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5
Q

Opportunities for unlawful organizational behavior

A
  • specialization promotes internal competition between departments and kept tasks separate and unrelated
  • organization can diversify beyond the capability of those at the top to master it
  • censorship of information
  • the tiered structure of most organizations obscures personal responsibility and tends to spread it throughout the company
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6
Q

Edward Gross

A

Asserted that all organizations are inherently criminogenic (prone to committing crime), though not necessarily criminal

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7
Q

Oliver Williamson

A

Noted that because of a department ‘s concern with reaching its goals, managers might well tend to maximize their department’s own interests to the detriment of the organization

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8
Q

Organization can be criminogenic because they encourage loyalty (Vaughan)

A

The reasons are that:
• the organization tends to recruit and attract similar individuals
• rewards are given out to those who display characteristics of the company man
• long-term loyalty is encouraged through company retirement and benefits
• loyalty is encouraged through social interaction, such as company parties and social functions
• frequent transfers and long working hours encourage isolation from other groups
• specialized job skills can discourage personnel from seeking employment elsewhere

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9
Q

Factors that prevent unity of the firm agents in fraud activity

A
  • the pressure to commit fraud might not affects departments in a company equally
  • even in high-pressure departmens, some employees will not have knowledge of the difficulty of obtaining needed resources
  • outside societal behavior can produce values that conflict with those learned in organizational environment
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10
Q

Brenner and Molander

A

Found that superiors are the primary influence in unethical decision making

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11
Q

Stone

A

Found that the success of law enforcement “ultimately depends upon its consistency with and reinforcement of the organization’s rules for advancement and reward, it’s customs, conventions and morals”

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12
Q

Enforcement strategies. Compliance

A

Compliance systems provide economic incentives for voluntary compliance to the laws and use administrative efforts to control violations before they occur

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13
Q

Enforcement strategies. Deterrence

A

Designed to detect law violations, determine who is responsible, and penalise offenders in order to deter future violations

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14
Q

Silk and Vogel found several other actions used by business to rationalise conduct (against regulation):

A

• Government regulations are unjustified because the additional costs of regulations and bureaucratic procedures cut heavily into profits.
• Regulation is unnecessary because the matters being regulated are unimportant.
• Although some corporate violations involve millions of dollars, the damage is so
diffused among a large number of consumers that individually there is little loss.
• Violations are caused by economic necessity; they aim to protect the value of stock, to ensure an adequate return for stockholders and to protect the job security of employees by ensuring the financial stability of the corporation.

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15
Q

John Braithwaite views white-collar crime as

A

a product of the corporate subculture. In Braithwaite’s view, corporations will turn to crime as a result of “blocked opportunities.”

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16
Q

Efforts to control corporate crime follow three approaches

A

voluntary change in corporate attitudes and structure; strong intervention of the political state to force changes in corporate structure, accompanied by legal measures to deter or punish; or consumer action.

17
Q

Voluntary changes would involve

A

development of stronger business ethics and certain corporate organisational reforms

18
Q

government controls might involve

A

federal corporate chartering, deconcentration and divestiture, larger and more effective enforcement staffs, stiffer
penalties, wider use of publicity as a sanction, and possibly the nationalisation of
corporations

19
Q

consumer group pressures may be exerted through

A

lobbying, selective buying, boycotts, and the establishment of large consumer cooperatives

20
Q

Clinard and Yeager found that ___ probably represents the most feared consequence of sanctions imposed on a corporation

A

mass media publicity about law violations

21
Q

Clinard and Yeager suggest that ___ would be of great help when a businessman wished to refuse an unethical request, would help define more clearly the limits of acceptable or ethical conduct, would improve the ethical climate of the industry, and would serve to reduce cut-throat practices where competition is intense.

A

a wide, comprehensive industrial code of ethics, which many businessmen favour