White collar crime and the definitional quagmire: A provisional solution

More than virtually any other realm of criminological scholarship, white collar crime study is plagued by unresolved definitional, conceptual, and typological issues. The present confused and contradictory invocations of the core terminology pertaining to white collar crime introduce a significant element of incoherence into the field. In this paper the seminal origins of the concept of white collar crime, in the work of E. A. Ross and E. H. Sutherland, are explored. The principal elements of subsequent efforts to define white collar crime are identified. It is claimed that a war of white collar criminologists' has emerged, principally pitting critical white collar criminologists against positivist white collar criminologists. Some of the strengths and weaknesses of each of the principal constituencies in this definitional war are examined. The paper concludes with the argument that the concept of white collar crime is defined on three different levels—presentational, typological, and operational —and that any definition of white collar crime is meaningful only in relation to its stated purpose.     

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?     

WHITE COLLAR AND ECONOMIC CRIME: AN INTERNATIONAL PERSPECTIVE

In recent years increased attention has been paid by various international forums to the dangerous upsurge in internationally oriented white collar and economic criminality. At the same time, organs like the United Nations or the Council of Europe are attempting to effectively deal with economic crime occurring on national levels. The author traces the development of international efforts in the field by focusing on the relevant United Nations resolutions and agreements, as well as on documents adopted by the Council of Europe. It is demonstrated that the use of terminology which is not substantially different from theories of white collar crime developed on national levels, as well as indirect references to Sutherland's ideas, constitute the conceptual link between the international instruments dealing with white collar crime (including specific United Nations agreements and codes, and the work undertaken by the Council of Europe), and traditional, nationally-oriented theories. This similarity has far-reaching practical implications: except for purely international white collar crimes, many of which are of very recent origin, white collar crime theory can be applied in combating international crime occurring within national boundaries, the seriousness of which is evident from an examination of the relevant documents. The author advances a theory of international white collar crime and suggests that its increase necessitates the adoption of new theoretical horizons and new practical methods for dealing with this dangerous form of law-breaking which defies traditional notions of “crime” and “criminal”.     

Race,ethnicity, and social change: The democratization of middle‐class crime*

Since the mid‐1970s, the percentage of non‐White people convicted of white‐collar type crimes in the federal judicial system has been growing steadily. In 2015, non‐Whites accounted for more than half of all convictions for certain white‐collar type crimes, but the increase in non‐White participation has not occurred evenly across all race and ethnic groups. Asians and Latinos have increased their participation in white‐collar crime more so than Blacks. Using data from the U.S. Sentencing Commission, the Equal Employment Opportunity Commission, and the U.S. Census, we investigate whether the differential increase among race and ethnic groups in white‐collar type crimes can be explained by their differential increase in middle‐class occupations. The findings have implications for opportunity, cultural, and race‐centered perspectives on crime, as well as institutional anomie theory, and they suggest that low‐level white‐collar crimes are being democratized along lines of race and ethnicity.     

Serious white collar fraud: historical and contemporary perspectives

This article traces the development of fraud throughout history and the establishment of a class of criminal activity committed by members of the business community. There have been a number of attempts to legislate against white collar crime as a specific offence and these efforts have thrown up many definitional problems. The historical development of crimes committed by the business community is investigated within the context of the different approaches formulated in England & Wales and France, this leads into discussion of the possibility that in future there may be a fusion of organised crime and white collar crime in a global context. Many commentators and government agencies believe there is an expansion of the network of organised crime into the business environment and there is a danger that in attempting to overcome legal and socio-legal terminology active deterrence and prosecution is delayed. The issue of competing themes and meanings are explored and the conclusion identifies the controversies that continue to surround this subject and proposes a definition of white collar crime for international application. This revised version was published online in August 2006 with corrections to the Cover Date.     

Assessing Newspaper Coverage of Corporate Violence: The Dance Hall Fire in Qoteborg, Sweden

The media disproportionately focus on conventional crime while neglecting the impact of corporate misbehavior. The present research examines U.S. newspaper coverage of a deadly fire at a dance hall in Goteborg, Sweden. This particular incident facilitates an examination of how newspapers treat issues involving culpability of conventional offenders (arsonists) and white collar offenders (the owners of the nightclub and the promoters of the dance). It was found that newspapers disproportionately focused on the direct harm associated with the fire, and generally neglected the role played by the organizers/promoters. Suggestions are offered regarding the need for more complete media coverage of crime, particularly white collar crime. This revised version was published online in July 2006 with corrections to the Cover Date.     

Gender,Identity, and Accounts: How White Collar Offenders Do Gender When Making Sense of Their Crimes

When offenders are asked to explain their crimes, they typically portray themselves as decent people despite their wrongdoings. To be effective at managing the stigma of crime, motivational accounts must be believable to the social audience. Thus, variation in patterns of accounts is likely due to the social position of the actors. Here we examine whether gender constrains the way individuals describe their crimes by analyzing the motivational accounts of male and female white collar offenders. Results show that while men and women both elicit justifications when discussing their crimes, they do differ in the frequency with which they call forth specific accounts and in the rhetorical nature of these accounts. When accounting for their crime, white collar offenders draw on gendered themes to align their actions with cultural expectations of masculinity and femininity. These findings suggest that gender does constrain the accounts that are available to white collar offenders.     

RACIAL ANIMOSITY AND INTERRACIAL CRIME*

The primary objective of this study is to determine the effect of a victim's race on the likelihood of him or her being seriously injured during the commission of an interracial crime. We also assess the probability of a homicide occurring during an interracial crime. A multilevel city analysis shows that black offenders are no more apt than white offenders to injure their victims seriously during an interracial robbery or rape. A black offender also does not have a greater proclivity to kill his or her victim during the commission of an interracial crime. Some evidence suggests that white victims are more likely than black victims to suffer serious physical harm during an aggravated assault. Results also reveal that contextual factors related to racial animosity, such as residential segregation, white‐to‐black economic inequality, and black‐to‐white unemployment, fail to have any moderating effect on either the severity of victim injury or the likelihood of a homicide occurring during an interracial crime. Overall, the results generated in this study tend to cast doubt on the validity of racial animosity theory. Our findings also lead us to question the veracity of the oftenmade claim that black‐on‐white crimes are punished more severely because these types of offenses are somehow more heinous in circumstance. At least in regard to serious victim injury and victim death, black‐on‐white crime is no more violent than white‐on‐black crime.     

Fear of crime among citizens of Turkey

Most fear of crime research has occurred in Western countries. The following analysis presents an integrated model of fear of crime for a randomly selected sample of 6,713 individuals from urban and rural parts of Turkey. Consistent with previous research, the victimization model, disorder model, and community concern/social control model predicted fear of crime among Turkish citizens. The integrated model of fear of crime, however, functioned differently in the Turkish context based on gender and residential locale. Increased age lowered the level of fear for women but not for men, and the positive impact of previous victimization on fear of crime was significantly more pronounced among females. Increased education reduced fear for urban dwellers, but not for rural residents. While age did not have a significant impact on fear for rural residents, in contrast to the vulnerability hypothesis, it reduced the level of fear for urban residents.     

A Routine Activities Analysis of White‐Collar Crime in Carbon Markets

Scholars recently called for increased analysis of opportunity structures that produce white‐collar crimes in legitimate business systems. In the current research, we use mental models, a tool from cognitive psychology, to describe opportunity structures for white‐collar crime in the European Emissions Trading System, the largest carbon market in the world. Specifically, we use routine activities theory to describe the convergence of motivated offenders and suitable targets in the absence of capable guardians in different parts of the system. Implications for utilizing routine activities theory to understand and address crime in carbon markets are discussed.     

What Could a New Crime Commission Accomplish?

Even though the crime rate in the United States has dropped since the U.S. President's Commission on Law Enforcement and Administration of Justice under President Johnson issued its report in 1967, the total number of serious crimes in the nation has increased, and public concern about the subject remains high. The 1960s Commission did not fully consider several major subjects that have emerged after it reported, including mental illness, immigration, cybercrime and other white collar crimes, indigent defense, crime victims, and evidence‐based crime policy. Many observers believe that the need to deal with these subjects in addition to those discussed by other researchers in this volume warrants an examination of crime and justice by a new commission. Congress has considered proposals for such a study for nearly a decade, but they are yet to be acted on amid ideological disputes over other criminal justice issues. If Congress fails to establish a new commission, it is still possible that one could be formed with the support of state, county, and local governments, as well as with the support of private foundations.     

Crime: The amount and disparity of sentencing – A comparison of corporate and occupational white collar criminals

Research carried out previously, aimed at examining differences in the length of the sentencing and type of offence, have typically compared white collar and street criminality. The main aim of the current study is to examine the differences in sentence length for white collar occupational and corporate offenders from street crime offenses and to identify which factors eventually could explain such differences. The crime amount was smaller in occupational convictions despite the fact that the average crime amount was significantly less in this group compared to the crime amount among corporate criminals. Socioeconomic status and company size were not found to be associated with the length of the sentence. We discuss whether the difference in length of the sentence could be explained by the fact that occupational crime is committed for the criminals' own purposes or enrichment, while this is often not the case among corporate criminals.     

Sympathy for the Devil: An Exploration of Federal Judicial Discretion in the Processing of White-Collar Offenders

Since the late 1990s, the United States has experienced a series of major corporate malfeasance events leading to the collapse of corporations such as Worldcom and Enron, predatory lending practices which devastated the nation’s real estate market and the Bernie Madoff scandal serving as prime examples. While the leading culprits in such well-publicized cases have met stiff sanctions, the common notion is that white-collar offenders are treated more leniently than street offenders by the criminal justice system. Given the scope and severity of victimization attributable to the contemporary white collar crime epidemic, the matter of sanctioning fairness and severity is of timely importance. This paper examines judicial discretion in the form of the decision to incarcerate and the length of sentences imposed for federal white collar and street level offenders. Findings inform discussion oriented around the related issues of deterrence and public safety.     

The Perceived Seriousness of Crime in the Middle East

This paper builds on previous work in examining the seriousness of criminal acts. The research was conducted to determine the seriousness of several criminal acts in the Middle East with the goal to determine whether certain characteristics of the respondents would be associated with different perceptions as to the seriousness of different types of crimes. The findings of this study differ significantly from previous research in finding Moral Crimes to be perceived as extremely serious, in fact, about as serious as violent acts. However, the rank order of violent, property and white collar crimes, when the moral crimes are eliminated, are consistently with previous research. Similar to previous research, no difference was found in the overall ranking of crimes by any of the subgroups analyzed. It was found that religiosity (Islamic Fundamentalism) was the best predictor of a respondent's overall perception as to the seriousness of crime.     

The Roots of Modern White-Collar Crime: Does the Modern Form of White-Collar Crime have its Foundation in the Transition from a Society Dominated by Agriculture to One Dominated by Industry?

The purpose of the present paper is to investigate whether the process of transition from an agricultural to an industrial society was a watershed for white-collar crime, such that this type of crime increased rapidly in connection with the industrialization process. The theoretical reasoning behind this notion is that the transition process promoted a mentality characterized by self-centered values and a culture of competitiveness, which together paved the way for fraud perpetrated at the expense of others. The data are from Statistic Sweden’s historical records and cover the period of 1864–1912. Since there is no way to measure all crimes that can be defined as white collar crime, we have used bankruptcy offences as an example of white collar crime. The results do not support the notion that the transition period from an agricultural to an industrial society showed an increase in bankruptcy offences. Instead, the results show that when fluctuations in the economy are taken into account, the industrialization process per se entailed less bankruptcy offences. On the other hand, other research using the case of Sweden has shown that it was first after World War II that bankruptcy offences increased rapidly. Our argument is that the transition process as a structural mechanism had a greater impact on bankruptcy offences when industrialized capitalism became advanced.

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Integrated Theory and Crimes of Trust

The integrated theory first proposed by Elliott et al. (1979), combining strain, social control, and social learning (and sometimes social disorganization) theories, has been repeatedly tested and consistently supported for a wide range of behaviors including licit and illicit substance use, violence, and other forms of illegal behavior. It has not, however, been tested for a class of illegal behaviors best described as crimes of trust, which include different types of fraud, workplace theft, and income tax evasion. This category of offending includes offenses commonly regarded as white collar crime, and also offenses that have been more or less marginal to the study of white collar crime. The present paper tests the integrated theory specifically for crimes of trust in the National Youth Survey Family Study, a national, multigenerational sample of individuals whose focal respondents were 11–17 years old in 1976–1977, and who are now in middle adulthood. Relying on structural equation modeling (SEM), parallel tests are performed for two generations, the focal respondents in early middle age (ages 38–45) and their adult offspring (ages 18–24) for the period 2002–2004.     

Both too much and too little: From elite to street crime in the transformation of the Czech Republic

A social capital theory of crime proposes that both excessively high and low levels of trust lead to crime. Low levels of trust are associated with predatory forms of street crime, while high levels of trust can lead to white collar crime and political corruption. This paper explores the role of social capital and trust in the causation of under and upperworld forms of crime in the rapidly changing circumstances of the Czech Republic. Connections between social capital and crime are the product not only of the transition to a market economy, but also of the problems of the pre-transition Czech society. This revised version was published online in July 2006 with corrections to the Cover Date.     

Exorbitant CEO compensation: just reward or grand theft?

The failure of society to criminalize policies and practices of powerful organizations and individuals that are demonstrably harmful has been a central theme of the white collar crime literature since Sutherland. In recent years much commentary and criticism has been directed at vastly exorbitant compensation packages awarded to CEOs of major corporations and other major institutions. Although some criminal prosecutions have been pursued on the basis of allegations of fraud in relation to CEO compensation (e.g., the Dennis Kozlowski/Tyco case and the Conrad Black/Hollinger case), and some civil lawsuits demanding repayment of unjustifiably large CEO compensation have been initiated (e.g., the Richard Grasso/New York Stock Exchange case), most typically exorbitant CEO compensation packages result in neither criminal indictments nor civil lawsuits. This article explores the status of exorbitant CEO compensation as a criminological phenomenon, beginning with a typology of different views on such compensation. The contemporary scope of disproportionate compensation is reviewed, with the exponential increase in the gaps between the compensation of CEOs and those below them documented. Some of the different mechanisms along a continuum of legal to illegal for providing exorbitant CEO compensation are identified. Why is the awarding of exorbitant CEO compensation typically legal? What specific forms of harm arise from awarding exorbitant CEO compensation? Why do Corporate Board Compensation Committees award exorbitant CEO compensation? Indeed, what are the specifically criminogenic dimensions of Corporate Board decision-making that contribute to this process? What arguments can be advanced in favor of criminalizing exorbitant CEO compensation and against doing so? What specific practical constraints would have to be overcome to criminalize the awarding of exorbitant CEO compensation? If exorbitant CEO compensation has not been addressed traditionally as a form of white collar crime, what arguments can be advanced in favor and against doing so now? This article promotes attention to the exorbitant CEO compensation issue by white collar crime scholars, with a provisional addressing of the questions raised above.     

Enron Et Al.: Paradigmatic White Collar Crime Cases for the New Century

The Enron et al. cases (i.e., the series of “corporate scandal” cases emerging in 2001–2002, beginning with Enron, and including such cases as WorldCom, Global Crossing, Adelphia, and Tyco) are the first major American white collar crime cases of the new century. This article identifies some of the key attributes of these cases. The Enron et al. cases can only be understood by applying criminological theory on several different levels; structural, organizational, dramaturgic and individualistic dimensions are applied to the Enron case in particular. The Enron et al. cases must also be understood in the context of an emerging postmodern society. The specific role of criminologists in explaining and responding to these paradigmatic new white collar crime cases is addressed. The article ends with some conjectures on the potential outcomes of the Enron et al. cases. This revised version was published online in July 2006 with corrections to the Cover Date.     

Reimagining Sutherland 80 years after white‐collar crime*

Eighty years ago, Edwin H. Sutherland conceptualized and defined white‐collar crime. In this article, I engage retrospectively with Sutherland's ideas and work to emphasize important aspects that continue to guide research today; to note where he was prescient as well as shortsighted. I center this discussion around “corporate crime” or crimes by business. Four main themes are discussed: 1) law and official responses to corporate offending—the data problem, 2) corporate crime and the life cycle of organizations, 3) psychological and trait‐based explanations, and 4) consequences of definitional ambiguity.