18 terms

Corporate Crime


Terms in this set (...)

The Context of white collar crime
+Edwin Sutherland (1949) defined white-collar crime as:
-...criminal activity by persons of high social status and respectability who use their occupational position as a means to violate the law
=challenges that crime is a poor person crime
2 types of white collar crime
Occupational Crime
-...offences committed by individuals, for themselves, in the course of their occupations.
+Employee theft
+cf Clark and Hollinger's findings that a third of 9000 respondents had stolen from their employer.
Princewaterhouse Coopers (07)
+78 NZ organizations
-two-thirds experienced economic crime within previous 2 years
-Average loss = NZ$1.02mn
+Of the reported 'economic crimes' in NZ:
-58.7% = asset misappropriation
-31.5% = accounting fraud
-8.3% = corruption and bribery
-8.1% = money laundering
-15.7% = intellectual property (IP) infringement
-4.1% = other crimes
Serious Freud Office(SFO)
+Investigate about 70 cases year
+2007/08 - 16 convictions
+Offenders = professionals
+Punishments: fines / home detention / short prison terms
=Huge money, 200000-2million but low fines/ sentences
Corporate Crime
+"...conduct of a corporation, or of employees acting on behalf of a corporation, which is proscribed and punishable by law"
-not just criminal law but administrative & civil
-also covers negligence
-Motivation-organizations end not just individual(personal advancement)
Types of corporate crime
Financial Crimes
-illegal share dealings and mergers
-tax evasion
-illegal accounting
-fair trading offences
Financial Crimes-Bridgecorp
-Collapsed 2007, owing $460mn to over 14,500 investors
-Lied to investors about financial health
-Claimed to be underwritten by Lloyds
-Continued to take investors monies
-Illegal accounting
Offenses against Consumers
illegal sales and marketing practices
-sale of unfit good
- price fixing
-false labelling or information
-deceptive advertising
-fraudulent safety testing
(consumer commission)
=distance allowed in corporate crime allows you to be less empathetic for victims)
Offenses against Consumers-Sale of Bacteria filled food
+Food Safety Authority estimates that 90% fresh chicken contains campylobacter
+About 400 hospitalizations year
+100,000 infections year
+Problem = poultry industry processing
Crimes against Employees and Employee Protection
-sexual and racial discrimination
-offences against employment law
-offences against occupational health and safety
Crimes against Employees and Employee Protection-Health and Safety
+53 deaths from fatal accidents at work (2007-08)
+Average 31 work-related traffic crash deaths
+3 deaths in commercial maritime industry (2008)
+700-1000 deaths from exposure to dangerous substances
-Compare to murder
-thousands of workplace injuries
-equipment training, costly to prevent
-corporation-meet criteria for psychopathy
Environmental Offenses
-illegal emissions to air, water, and land
-hazardous waste dumping
-illegal manufacturing practices
Environmental Offenses-Exide battery recycling plant in Petone
- dumping hazardous waste (lead, and arsenic) and lead pollution
health issues
-low fines
-not worth following rules
Explaining Corporate Crime
-Cost-Benefit Analysis (Classicism)
-Result of Corporate Personalities (Positivistic)
-Learnt Behavior (Differential Association)
-Pressure to Succeed (Strain theory)
-Ability of Corporation to Resist Criminalization (Radical perspectives)
The cost of corporate crime
-way beyond conventional,into millions
-health, polution
-poor pay biggest cost
-Minimizing Language
-Lack of Moral Panics!
-Don't Often Identify Victims as Victims
-Limited Redress for Victims
Controlling Corporate Crime
Simpson (2002) identifies c.j. flaws:
+1)Legal system problems:
- Low risk of getting caught
- Punishments do not discourage criminal conduct
+2)Problems in proving criminal intent and establishing culpability:
- Finding responsible parties
- Corporations can hide their behavior and circumvent legal processes
+3)Organizational structure problems:
- Corporate re-incarnation
- Reliance on self-regulation