The downsizing of America: A neglected dimension of the white collar crime problem

Downsizing has emerged as one of the noteworthy economic trends of the 1990's. This paper offers a preliminary exploration of the implications of corporate downsizing (real or perceived) for white collar crime. The following are among the issues considered: Can downsizing be defined, in a meaningful sense, as a crime against stakeholders (for the benefit of shareholders)? Is downsizing an alternative to the commission of illegal acts by corporations seeking to maximize profit and minimize loss, or an adjunct to such crime? Is the prospect of downsizing likely to inspire greater or lesser willingness on the part of corporate middle managers to engage in illegal acts on behalf of the corporation? Are motivations to commit crime against corporate employers — and opportunities to do so — intensified (or diminished) as a consequence of the prospect of downsizing? Does downsizing promote higher levels of engagement in white collar crime among corporate middle managers compelled to accept white collar jobs paying far less than positions lost due to downsizing? Finally, does downsizing and its prospect contribute to a broader social and cultural environment conducive to more white collar crime?