White Collar and Corporate Crime

White Collar and Corporate Crime

Introduction

The aim of this paper is to discuss the crime and delinquency mainly focusing on white collar and corporate crime. There are several definitions of white collar crime. The term is credited to sociologist Edwin Sutherland in his 1939 presidential address to the American Sociological Association. He spoke of white-collar crime as a type of crime where criminals use their place of privilege to steal from and harm others by committing an action other than a street offense. While the phrase white-collar crime suggests that the perpetrator is of higher socioeconomic status, all types of individuals, groups, and organizations perpetrate these crimes ranging from the small individual tax cheat to the large-scale corporate cover up. Not all organized crime involves 'gang-related' activity. White-collar and corporate crime often amounts to organized crime. Fraud of all kinds, including fraud against supranational bodies such as the EU, is widespread. The profits from such activities are huge. Because much organized crime is actually business crime, there is an increased blurring of the line between legitimate and illicit business (Ettorre, 1994).

The world steeped in corporate fraud, and the problem is probably most acute in developed countries. The governments of poorer countries may accept more readily the pots of wine and commit more offenses, but it is the large corporations of the rich countries who commit the most serious crimes. Cash is king and it corrupts both politics and markets all over the world. Not a day goes by without a new scandal broke out. Corruption by companies is out of control for two main reasons. The first is that corporations are now transnational while governments have a national scope. And large corporations are so powerful financially those governments are reluctant to continue. The second reason is that large companies are major campaign donors, including the United States, while politicians are often part owners of these companies, or at least discrete beneficiaries of profits made by these companies. Nearly half the members of Congress are millionaires and many of them have close ties with companies before being elected to Congress (Henry, 2010).

Discussion and Analysis

It is estimated by the Federal Bureau of Investigation (FBI) that white collar crimes cost the United States approximately $300 billion per year. White-collar crime can have a direct human impact through aspects such as pollution and exposure to hazardous materials. White-Collar Crime includes the Financial and Securities Fraud, Corporate Environmental Hazards, Insurance Fraud, Governmental Fraud, Identity Theft and Electronic Fraud, Insider Trading and Price Fixing and Manipulation.

White collar crime occurs mostly in people level professions who use their authority, experience, or expertise which is also the basis of high status occupations of violating the laws and rules governing their profession. It often takes the form of violation of professional standards. Doctors sometimes prescribe certain procedures because they have a strong economic interest to do so, counsel representing the applicant may recommend a solution favorable to the accused in exchange for a substantial compensation, ...