14 Nov 2022

232

White Collar Crime and its Negative Impact upon Society

Format: APA

Academic level: College

Paper type: Research Paper

Words: 1763

Pages: 7

Downloads: 0

The term "white collar crime" is now discussed at both international and national level, mainly due to its many negative impacts on individuals and the society at large. White collar crime is not a new concept as its history can be traced back to 1939 when the term was coined by one of the greatest American sociologists who was known as Edwin Sutherland. According to Sutherland, white collar crimes refer to criminal activities that are committed by individuals as well as organizations of high statuses, mainly when they are doing their legitimate functions or roles. White collar crimes are now a topic that is whitely discussed because its occurrences are increasing in both developed and developing. However, it is one of the most complex crimes to understand, and the criminal justice system finds it difficult to prosecute of convict perpetrators of such criminal activities. Consequently, some scholarly literature has been published to explore and enhance the understanding of white-collar crime ( Eaton & Korach, 2016) . Many economies and companies have collapsed because of white collar crime, and the problem should be addressed before it causes an irredeemable negative impact on the society. 

Causes of White Collar Crime 

Many studies and theories have been used to explain the causes or what motivates a person to engage in white-collar crime. One of the theories that have been used to understand the motivation for white collar crime is the general deterrence theory, which is mainly based on the evaluation of costs and benefits of committing a criminal activity. According to the proponents of the theory, people are likely to commit a crime when the perceived benefits outweigh the costs ( Eaton & Korach, 2016) . Some of the deterrence that is associated with white collar crime are long jail terms, public humiliation, and loss of personal reputation. Therefore, based on the theory, people or organizations commit white collar jobs when they know that benefits are more than costs. In connection to the general deterrence theory is the rational choice theory, which asserts that people only act after assessing the potential risks and rewards of their acts ( Eaton & Korach, 2016) . Hence, white crime offenders make a rational choice to engage in criminal activities. 

It’s time to jumpstart your paper!

Delegate your assignment to our experts and they will do the rest.

Get custom essay

Scholars have also used the general strain theory to explain the cause of white collar crimes in the society. Strain theorists argue that individuals who are not able to meet their needs or achieve their aspirations through conventional means are likely to engage in white-collar crimes as a way of relieving the strain ( Eaton & Korach, 2016) . For instance, to relieve pressure from shareholders, the top management of a company may decide to overcharge their products or services to increase profits. At the same time, an individual may choose to engage in a white crime to gain wealth and fit in a given social status in the society. As a result, socio-economic strains can push a person to commit white collar crime. 

The causes of white-collar crime can also be understood based on the character traits of offenders. People mainly commit white collar crimes in authority or individuals with excessive power, which explains why such crimes are mostly perpetrated by executives of companies or people holding high positions in public organizations ( Eaton & Korach, 2016) . People with authority are always confident of their power and influence, and they are convinced that they cannot easily be apprehended or convicted by the concerned authorities. Besides, people with narcissistic personality are likely to commit white collar crimes because of their traits such as lack of commitment to others, inability to empathize with others ( Eaton & Korach, 2016) . The need for admiration and to live a lavish lifestyle motivates a person to commit white collar crime. 

Besides, white collar crime is mainly committed by individuals with low self-control. A study that was conducted by Blickles in 2006 showed that people with low self-control are likely to be motivated to commit a white collar crime compared to their high self-control counterparts ( Eaton & Korach, 2016) . Persons with low self-control are not able to withstand pressures or opportunity, leading to the desire for immediate gratification. Furthermore, individuals with low self-control are likely to be offenders of white-collar crime because of their nature to impulsive male decisions. Hence, some personalities or traits are associated with high chances of committing white collar crimes. 

At the same time, the rate of white collar crime can be influenced by beliefs and values that are held by individuals in the society. White collar crime is likely to be high in societies where it is perceived to be more serious than general crimes. On the contrary, people are motivated to commit white collar jobs in societies where such crimes are believed to be less serious compared to other general crimes ( Larsson & Alalehto, 2013) . For instance, in Turkey, traditional crimes are perceived to be more serious than white-collar crimes. As a result, as a result, the rate of white crime is high in Turkey because of people's perception. 

On the contrary, in the USA, many people believe that white collar crimes are more serious than general crimes ( Larsson & Alalehto, 2013) . However, the people's perception of white-collar crime is mostly influenced by their knowledge and awareness about different types of crime. The media plays an active role in exposing people to white collar crime, including any other criminal activity that may occur in the society. 

Negative Impact of White Collar Crime in the Society 

White collar crime has many negative impacts on the society. Many economies and companies have collapsed because of the white collar crimes. At the same time, individual consumers have negatively been affected by white collar crimes that are increasingly becoming common in both developed and developing countries. Therefore, the significant impact of white-collar crime is the organizational loss, especially concerning fraud. According to the report that was published by the Association of Certified Fraud Examiners in 2014, organizations lose about five percent of their total revenue because of fraud, which is one of the major types of white collar crimes ( Eaton & Korach, 2016) . The report estimated that businesses lose about $3.7 trillion annually because of white collar crimes, leading to the collapse of many firms ( Eaton & Korach, 2016) . More than 50% of companies that have experienced massive fraud are not likely to recover due to financial problems or losses ( Eaton & Korach, 2016) . Consequently, the collapse of many companies may affect the entire economy while leading to massive job loss. An economy can only experience positive growth when its private sector is growing. As a result, white-collar crime does affect not only organizations but also the broader economy and people who depend on such organizations for their livelihood and survival. 

The global financial crisis that was experienced between 2008 and 2009 also shows that white-collar crime can affect the entire international economy. One of the major causes of the global financial crisis was the mortgage fraud (Braithwaite, 2010) . Many people fraudulently used false documents to obtain mortgage loans from various financial institutions. At the same time, many people use false information during mortgage loan application. The bad housing loans that were characterized by many frauds resulted in an economic recession, which ended up affecting the entire world (Braithwaite, 2010) . Thus, because of the global financial crisis that was caused by fraud in the housing sector in the USA, a significant number of companies collapsed, many economies experienced negative growths, and individuals faced hard economic times. The economic recession has adverse effects on the life of individuals due to reducing income and high rate of unemployment, as many companies cut their workforce to lower the cost of production and operation. Also, some companies make losses as was witnessed during the global economic crisis that occurred between 2008 and 2009. 

Like organizations, consumers are also largely affected by white-collar crime. Many consumers have been victims of white collar crimes. White collar crimes have affected the health, economic, and social life of a significant number of consumers globally Gilley, R. (2014) . Food crime, which is a type of white-collar crime, is increasingly becoming common in many countries across the globe. The desire to reduce cost and increase profits has made some food companies sell unhealthy foods to consumers. A study that was conducted by the British Food Standards Agency (FSA) revealed that about 13% of people experience food poisoning because of the consumption of unhealthy food ( Croall, 2009) . The practice of food adulteration is also increasingly becoming common in the food processing sector as companies strive to reduce the cost of production. For example, some companies are injecting water to chicken to increase their weight and meet content before selling them to final consumers. Food adulteration can lead to a public health crisis in the entire country or region, particularly when harmful chemicals are used. 

Currently, due to health concerns of many consumers, a substantial number of companies are involved in misleading indications and description to attract buyers and dominate the market. Food labeling that indicates wrong ingredients have been used by companies to deceive consumers to buy their products. Some companies indicate that their food products do not contain fat when in the real sense they have a large quantity of unhealthy fat. For example, FSA found that many companies misuse the terms such as “natural” and “pure” to mislead consumers about the health standards of their products ( Croall, 2009) . Besides, toiletry industries are using chemicals that may have a long-term effect on consumers. The use of harmful chemicals is also rampant in the cosmetic industry. 

Therefore, white collar crime is endangering the health of people. Many people are likely to die of complex and unknown diseases because of the consumption of unhealthy foods that are laced with harmful ingredients and chemicals ( Croall, 2009) . Moreover, some diseases such as obesity, overweight, and diabetes will continue to kill many people when companies are not genuine about the ingredients that are used to manufacture food. Besides, the high rate of accidents will continue due to the sales of defective automobiles. White collar crimes have a significant negative impact on the society, especially concerning the health and safety of the people ( Gilley, 2014) . At the same time, white-collar crimes negatively impact the economic stability and growth of many economies across the globe. 

Consequently, there is a need to address white-collar crime to reduce its negative impact on the society. Importantly, the criminal justice system, particularly judges or the jury, should treat white collar crime like any other criminal activities. Many judges always focus on the motivational factors that result in a white collar crime instead of focusing on the real criminal issues ( Stadler & Benson, 2012) . Focusing on motivational factors have made white-collar criminal to receive a lesser punishment, increasing the rate of the crime. For instance, Gupta only received a two-year sentence instead of the required eight because the judge focused on the psychological motivation of the crime he committed ( Haugh, 2013) . White collar crime can be reduced when its cost outweighs the intended benefits by far. 

Conclusion 

The rate of white-collar crime is increasing globally, and it affects economies, organization, and individuals. , and it is influenced by traits, personality, and cultural factors. However, white-collar crime has a significant impact on the society. Many organizations have collapsed because of white-collar crimes as they lose a lot of money. At the same time, economies are experiencing economic challenges and uncertainties due to white collar crimes. The crime also poses a lot of threat to human health as people continue to consume unhealthy food. As a result, countries should come up with measures and strategies to reduce white collar crimes, mainly by increasing the severity of punishment. 

References 

Braithwaite, J. (2010). Diagnostics of white ‐ collar crime prevention. Criminology & Public Policy , 9 (3), 621-626. 

Croall, H. (2009). White-collar crime, consumers and victimization. Crime, Law and Social Change , 51(1), 127-146. 

Eaton, T. V., & Korach, S. (2016). A criminological profile of white-collar crime. Journal of Applied Business Research , 32 (1), 129. 

Eaton, T. V., & Korach, S. (2016). A criminological profile of white-collar crime. Journal of Applied Business Research , 32 (1), 129-142. 

Gilley, R. (2014). Modern Developments in White Collar Crime. Northern Kentucky Law Review , 41(3), 491-493. 

Haugh, T. (2013). Sentencing the Why of White Collar Crime. Fordham Law Review, 82(6) , 3143-3145. 

Larsson, D., & Alalehto, T. (2013). The Reaction towards white collar crime: when white collar crime matters. The Open Criminology Journal , 6 (1), 1-9. 

Stadler, W. A., & Benson, M. L. (2012). Revisiting the guilty mind: The neutralization of white-collar crime. Criminal Justice Review , 37 (4), 494-511. 

Illustration
Cite this page

Select style:

Reference

StudyBounty. (2023, September 15). White Collar Crime and its Negative Impact upon Society.
https://studybounty.com/white-collar-crime-and-its-negative-impact-upon-society-research-paper

illustration

Related essays

We post free essay examples for college on a regular basis. Stay in the know!

Cruel and Unusual Punishments

Since the beginning of society, human behaviour has remained to be explained by the social forces that take control. Be it negative or positive, the significance of social forces extend to explain the behaviour of...

Words: 1329

Pages: 5

Views: 104

Serial Killers Phenomena: The Predisposing Factors

CHAPTER 1: INTRODUCTION _Background information _ Ronald and Stephen Holmes in their article _Contemporary Perspective on Serial Murder_ define a serial killer as anyone who murders more than 3 people in a span...

Words: 3648

Pages: 14

Views: 442

Patent Protection Problem

A patent offers inventors the right for a limited period to prevent other people from using or sharing an invention without their authorization. When a patent right is granted to inventors, they are given a limited...

Words: 1707

Pages: 6

Views: 275

General Aspects of Nonprofit Organizations

Nonprofit organizations are prone to the long and tedious legal process of start-up as compared to their for-profit organizations. However, there are similar rules that govern the startup and the existence of both...

Words: 294

Pages: 1

Views: 73

Contract Performance, Breach, and Remedies: Contract Discharge

1\. State whether you conclude the Amended Warehouse Lease is enforceable by Guettinger, or alternatively, whether the Amended Warehouse Lease is null and void, and Smith, therefore, does not have to pay the full...

Words: 291

Pages: 1

Views: 134

US Customs Border Control

Introduction The United States Border Patrol is the federal security law enforcement agency with the task to protect America from illegal immigrants, terrorism and the weapons of mass destruction from entering...

Words: 1371

Pages: 7

Views: 118

illustration

Running out of time?

Entrust your assignment to proficient writers and receive TOP-quality paper before the deadline is over.

Illustration