Introduction to Corporate Crime: Theories and Prevention Methods

This essay provides a comprehensive overview of corporate crime, defining it as criminal activity committed by a corporation or its agents for the company's benefit. It emphasizes the importance of good corporate governance and the negative impacts of corporate crime on stakeholders. The essay then explores the overlaps between corporate crime and white-collar crime, organized crime, and state-corporate crime, clarifying the distinctions and relationships among these concepts. It also delves into theories related to corporate criminality, providing insights into the underlying causes and motivations. Furthermore, the essay outlines practical measures to prevent corporate crime, such as implementing verification systems and monitoring internet activities. The essay concludes by highlighting the significance of strict government policies in deterring corporate misconduct.

Running head: Corporate crime

Running head: Corporate crime
CORPORATE CRIME
August, 5th 2019
INTRODUCTION TO CORPORATE CRIME
In the context of criminology, corporate crime is the type of crime which is either
committed by a corporation or by the individual who is acting on behalf of the company. In
simple words, it can be said that the crime which is committed for the purpose to provide benefit
to the company is being called by the name of corporate crime. Herein it can be said that it is
very much important for the organization that it should always follow the rules and regulations
of good corporate governance. Thus, if any company deviate itself from the principle of good
corporate governance then in this situation there are greater chances that the respective firm has
indulged itself into criminal activities.
In the worst corporate crime-related case, the company will tend to face judicial
dissolution. It is also called by the name of death of the corporate or the business entity. For the
firm, it is very much essential that it should not indulge itself in any type of corporate crime.
This is because; such type of activity from the side of enterprise will tend to have a negative
impact on the respective customers of the enterprise. Further, the given type of thing will stop the
firm’s customers with respect to use the goods and services of the corporation in an effectual
manner. In this study, a detailed description will be given about the concepts that are just similar
to corporate crime. Further, the discussion will also be carried out in relation to the ways with
the help of which corporate crime can be mitigated from the firm.
CORPORATE CRIME OVERLAPPING
The term such as corporate crime is always overlapping with the three other types of
terminology. Hence, it is very much essential for the individual that it should get the idea about
concepts that are related to corporate crime. It is by complying with a given type of activity
only better understanding about the terms can be made in an effectual way. The detail
explanations about all of them are given below:
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Running head: Corporate crime
White-collar crime
The given type of crime is basically being done by the white-collar employees of the
firm. Hence, in other words, it can be said that white-collar crime is the type of crime which is
basically being done by the upper-income class section of the society. Since the white-collar
employees are linked with the elite and the professional class, so it is being called by the name of
white-collar crime. This is similar to corporate crime. But the only difference that tends to exist
between corporate crime and white-collar crime is that corporate crime tends to provide
benefit to all the members of the company that includes investors and suppliers etc. However,
white-collar crime will tend to provide benefit to the individual person only.
In addition to this, it can also be depicted that white-collar crime aims to provide
financial benefit to the business personnel. On the other hand, Edwin Sutherland is the person
who had given the definition of the white-collar crime in 1939. The white-collar crime is related
to cases like wage theft, insider trading, bribery, cybercrime, money laundering, and forgery, etc.
Overall, it can be said that it is also being regarded as one of the most important categories that
are associated with the concept of corporate crime in an effectual way.
Organized crime
The term corporate crime is also overlapped with the concept such as organized crime.
In accordance with the given context, it can be said that the organized crime basically possess
different types of illegal street activities such as cross border operation like drug trafficking,
kidnapping, performing manipulation in the accounts, tax evasion and misappropriation of the
funds, etc. However, the only similarity that exists between corporate crime and organized
crime is that it tends to involve some degree of social and political influence with an aim to
perform the operation in a successful manner.
In other words, it can also be depicted that organized crime is being regarded as one of
the categories of transnational and the local grouping of the highly centralized organization such
as terrorist group, etc. In this regard, there are different criminal firms that tend to force the
enterprise with respect to performing some kind of operation with them. The criminal
organization is typically called by the name of mafia or syndicate etc. In the country such as the
United States, a special act is formed with an aim to control the activities that are related to the
organized crime. The act is called by the name of organized crime control act 1970.
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Running head: Corporate crime
State corporate crime
It is also being regarded as another concept which is also related to the term such as
corporate crime. Herein, it can be depicted that state-corporate crime is the form of crime which
emerges when there is a significant relationship is being assessed between Commercial
Corporation and state policies. The respective term was examined by Kramer and Michalowski
in the year 1990. However, it is further redefined by the local criminal jurisdiction. The state
government tends to provide the infrastructure of commerce as well as law. In addition to this,
here all the states of the nation rely on the business. The businessmen will need to perform the
business operation as per the policies which are being framed by the state government in an
effectual way.
In addition to this, it can also be said that a business is not able to earn a profit if it will
not comply with the state policies. Since here all works are done as per the policy of state so
criminal activities cannot be performed alone. In this context, it can be said that state-corporate
crime is the type of crime which is done by both corporate and state government together. This
will have a significant impact on the people of society in an effectual way.
THEORIES IN RELATION TO CORPORATE CRIMINALITY1000
COMMON WAYS TO PREVENT THE CORPORATE CRIME
Till now we have discussed many things about the term corporate crime as well as about
the theories that are being related to the same. Thus, now we will get the idea about some
common measures that could be taken with an aim to put the complete stoppage over the given
type of activity in an effectual way. The details about the same are given below:
 To perform the implication of the verification system: For the company, it is very much
important that it should not assign all the important tasks to one single person. This is
because; if all tasks will be given to one individual then a company will become
dependent on the same. Further, the respective individual will also gain knowledge about
all the confidential information about the company. Thus, some type of verification
system should be there. This is due to the reason that it is through such type of activity
only a firm is able to track the activities of all its employees. If the firm will find any of
its employees as the suspect of committing some crime in the future then by taking timely
actions towards the same organization can avoid corporate crime.
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Running head: Corporate crime
 To track the internet activities of the firm’s employees: It is being regarded as another
major thing that can be performed by the enterprise. Herein, it is important for the
corporation that it should make an effort in terms of installing such type of software
which will track the internet activities of the company. Here, the firm should assess the
content which an individual is searching in the social networking sites. Thus, it is through
this way only corporate crime can be avoided.
 Forming the strict policy: It is the responsibility of the government of the nation that it
should form some strict policy. The policy should have clear remarks in relation to the
penalty for punishment and measures to be taken for the serious crime etc. Here, it is
through this way only fear can be created among all the firms that are operating in the
country. The given thing will assist in reducing corporate crime in an effectual manner.
Hence, it is by following some of these ways only corporate crime can be avoided in the
future.
CONCLUSION100
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