White Collar Crime

Post on: 16 Март, 2015 No Comment

ramblings of a criminology and criminal justice student…

White Collar Crime

White-collar crime is a term coined by Edwin Sutherland in 1939. Sutherland defined white-collar crime as crimes committed by the middle and upper class (Friedriches, 2007). However in recent times, persons of all classes have committed white-collar crimes, which is where the difficulty of defining white-collar crime lies. The many illegal activities claimed by white-collar crime are not considered or managed by criminal law. The main motive for white-collar crime usually lies within some form of financial gain for an individual or organisation. These illegal activities come with risk for the offenders who have been given a level of responsibility and hold a status of respectability within the community, which they abuse for the sake of reward.

Some examples of white-collar crime include trade violations, patent and right infringements, unfair labour practices, misrepresentation, misappropriation, embezzlement, bribery, advertising fraud, illegal rebates stealing, self dealing, corruption, role conflict (Friedriches, 2007). Some categories of white-collar crime include state crimes, which are committed by governments. Environmental crime which includes pollution and illegal tree clearing, workplace crime which can involve endangering the safety of workers, computer crimes such as identity or credit card theft and consumer scams which involve share market and investment scams. The problem that lies within defining white-collar crime is that it covers a wide range of illegal activities, which are covered by different sectors of the justice system not involving criminal law. These are workplace health and safety law, environmental law and consumer protection law. These bodies of law are not seen as criminal law but rather regulatory. Instead of punishing offenders like criminal law, regulatory law is aimed at keeping corporations and business in check and ensuring their activity is legitimate.

White-collar crime usually involves illegal and unethical acts. White-collar crimes are committed in a legitimate occupational environment, with those involved perpetrating the crime motivated by economic success (Friedriches, 2007). White-collar criminals, who hold a high or respectable social standing, violate a certain level of trust and responsibility for personal or organisational gain (Friedriches, 2007). This notion of trust is a common factor in white-collar crime. It is widely regarded that white-collar criminals are given some degree of trust, and therefore, white-collar crime is a violation by a person or corporation that has had a level of trust instilled upon them. This trust has been given to the offender through confidence in a relationship that the other party, or the offender, will act honourably and fulfil legitimate expectations (Oliver, 1997). And those that are given the most trust in their occupation are the middle and upper class, which usually have connections and influence with lawmakers and as such reduce the risk of conviction (Friedriches, 2007). Those committing white-collar crimes have been entrusted with a legitimate or superior occupational status. When a crime has been committed, the moral integrity of the occupational status and the offender’s status has been destroyed. The more respectable people appear to be, the more likely they are to be trusted (Ball, 1970).

Like all criminal behaviour, white-collar crime involves risk. This risk is taken at the chance of the offender gaining a certain reward. These rewards come from risking the safety of customers, workers and the general public in the hope of corporate growth. If corporations believe that they can avoid prosecution and get away with illegal conduct then there is a good chance that they will become involved in illegal activity. Felson describes white-collar crime as “crimes of specialised access” meaning that the offenders usually have access, power or responsibility that can be abused and used for illegitimate behaviour. Concern for short-term financial gain means they are more likely to reduce risks involving workers safety than those involving long-term health (Felstiner and Siegelman, 1989). Corporations accept higher levels of risk to workers safety than public safety. The public get more media attention (Hutter and Lloyd-Bostock, 1990).

Sutherland’s contribution to the field of criminology has been regarded as highly important because it brought to light the criminal activity committed by trusted members of society. White-collar crime involves a complex array of criminal behaviour ranging from embezzlement to product theft by employees. Because of this large net white-collar crime covers it has created much confusion, which still has not been rectified. However, those committing white-collar crimes are indeed given a certain level of trust by either society, there employer or corporation. The aim of white-collar crime usually always involves financial or material reward for the individual or organisation the offender represents.

Felson, M. (2002). Crime and everyday life. Thousand Oaks, CA: Sage.

Felstiner, W.L.F. Siegelamn, P. (1989). Neoclassical difficulties: Tort and detterence for latent injuries.