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Corporate Crime

Corporate Crime . Group Members: Lauren Raulerson Katy Bailey. What is Corporate Crime?.

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Corporate Crime

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  1. Corporate Crime Group Members: Lauren Raulerson Katy Bailey

  2. What is Corporate Crime? • Corporate crime refers to criminal practices by individuals that have the legal authority to speak for a corporation or company. These can include presidents, CEOs, managers, directors and chairmen, sales people, agents, or anyone within a company that has authority to act on behalf of the firm. Examples of criminal behaviour in most jurisdictions include: fraud, damage to the environment in violation of environmental legislation, exploitation of labor in violation of labor laws, and failure to maintain a fiduciary responsibility towards shareholders.

  3. Corporate Crime Causes • Bottom line mentality (make money) • Greed • Power • Decline in Ethics • Lack of regulation / prosecution • Lack of oversight

  4. Corporate Crime is White Collar The defining characteristics of white collar crimes must include the following two items. • The persons involved must be of a respectable and high social status attained in the course of the occupation. (CEO, doctor, lawyer). • The occupational mechanism by which the crime was committed must be business related.

  5. Examples of Corporate Crime • Environmental • Fraud • False Statements • Anti-trust • Campaign Finance • Food and Drug • Financial Crimes • Tax Evasion • Public Corruption

  6. Key Players in Corporate Crime • Corporations • Government • Victims of Corporate Crime → Employees → Consumers

  7. Legislation Americans perceive that Corporate Crime is trying to be regulated with legislation. The problem is that the people who make law (bills) are also the same people who have to endure constant lobbying by corporations who possess endless resources.

  8. Problems with Current Regulation • Pervasiveness Names like Enron, Exxon, General Electric, Hyundai, IBM, Mitsubishi, Tyson Foods top the list of this decades leading corporate criminals. • Non -”Technical” Violations Criminal prosecution only happens when intentional or reckless acts become noticed. Many of the top 100 companies premeditate, plan and consciously design criminal acts. • Insufficient Penalties Fines, even in the millions, do not stop corporate crime from paying.

  9. Consequences of Corporate Crime • Loss of Social Moral • Loss of Ethics • Shift to Monopolization • Economic Disparity between Employee / Management

  10. Prevention of Corporate Crime • Education of the Public • Ethics Training • Legal Reform

  11. Popularized Media Examples • Enron All employees lost 90% of retirement and Enron is the largest United States Corporation bankruptcy of all time. • Martha Stewart To save 44,000 dollars in stock in a company that was about to sink, she sold that stuck without the public knowing the same thing. • WorldCom Lied about 3.9 Billion dollars of ordinary expenses as capital expenditures. Stock plummeted to 20 cents and executives left with over 104 million in bonuses as they ran out the door.

  12. Examples not on the news. • Exxon – 125 Million dollar environmental fine. • Sears – 60 Million dollar fraud fine. • Eastman Chemical (Kodak) – 11 Million dollar antitrust fine. • Copley Pharmaceutical – 10.65 Million dollar food / drug fine. • Royal Caribbean Cruises – 9 Million dollar environmental fine. • Empire Sanitary Landfill – 8 Million dollar campaign fine. • Chevron – 6.5 Million dollar environmental fine. • Blue Cross Blue Shield of Illinois – 4 Million dollar fraud fine. • Tyson Foods – 4 Million dollar public corruption fine.

  13. The EndCorporate Crime Lauren RaulersonKaty Bailey

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