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Business Crime. Definition & Characteristics White Collar (Professional) Crime Why are rates of professional crime so high? Corporate Crime Difficulties studying business crime. Business Crime. Sutherland “..a crime committed by a person of respectability…”

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Presentation Transcript
business crime
Business Crime
  • Definition & Characteristics
  • White Collar (Professional) Crime
  • Why are rates of professional crime so high?
  • Corporate Crime
  • Difficulties studying business crime
business crime2
Business Crime
  • Sutherland “..a crime committed by a person of respectability…”
  • Distinction between unethical and illegal
characteristics of business crime
Characteristics of Business Crime
  • Involves complex, sophisticated and technical actions
  • Tends to be intermingled with legitimate behavior (i.e. false advertising)
  • Victimization is diffuse (i.e. harm caused by pollution)
  • Monetary sums are larger than street crime (avg. of $500,000 in 1980s)
characteristics
Characteristics
  • Business crime rarely prosecuted; penalties relatively light (i.e.John MacNamara’s 5 yr. sentence)
  • Not always perceived as crime
  • Lack of media coverage
  • Business criminals not stigmatized (many become celebrities)
professional crimes
Professional Crimes
  • Definition of Professional
  • Lawyers
  • Accountants
  • Executive/Management
  • Doctors
  • Examples: embezzlement & medical crime
embezzlement
Embezzlement
  • Theft from a corporation
  • Estimated at $27 billion in U.S., $6 billion Canada
  • Employee access to documentary records
  • Theft over an extended period
profile of embezzlers
Profile of Embezzlers
  • Nonshareable problem (booze, babes, bets)
  • Recognize & seize opportunity
  • Rationalize using a “vocabulary of motive” (i.e. borrowing not stealing)
  • Examples: Jim Baker’s $3.7 million theft from PTL Ministries
physician crime
Physician Crime
  • Dr.Richard Neale
  • Gross Negligence, Fraud & Incompetence
why are professional crime rates so high
Why are professional crime rates so high?
  • Victims tend to be impersonal
  • Power imbalances
  • Easy to rationalize
  • Criminal hard to apprehend
corporate crime
Corporate Crime
  • Consumer as victim
  • Employees as victim
  • Public as victim
consumer as victim
Consumer as Victim
  • The Ford Pinto
  • Tainted Meat
  • Insurance scams
employee as victim
Employee As Victim
  • Westray Mine
westray may 9 1992
Westray – May 9, 1992
  • 26 dead
  • Families & survivors
public as victim
Public as Victim
  • Environment
  • Public infrastructure
why is corporate crime difficult to study
Why is corporate crime difficult to study?
  • Problem with official statistics
  • Difficult to access information
  • Requires knowledge of different disciplines
  • Research funding lacking
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