What is white collar crime?

According to Edwin Sutherland (1960), white collar crime is defined as crime committed
by persons of high social status and respectability in the course of their occupations.
Edwin Sutherland was the first sociologists to study what has come to known as white
collar crime.

Background
The phrase "white-collar crime" was coined in 1939 during a speech
given by Edwin Sutherland to the American Sociological Society.
Although there has been some debate as to what qualifies as a white-collar crime, the
term today generally encompasses a variety of nonviolent crimes usually committed in
commercial situations for financial gain. Many white-collar crimes are especially difficult
to prosecute because the perpetrators use sophisticated means to conceal their activities
through a series of complex transactions.

According to the Federal Bureau of Investigation, white-collar crime is estimated to

cost the United States more than $300 billion annually. Although typically the
government charges individuals for white-collar crimes, the government has the
power to sanction corporations as well for these offenses. The penalties for whitecollar offenses include fines, home detention, community confinement, paying the
cost of prosecution, forfeitures, restitution, supervised release, and imprisonment.
However, sanctions can be lessened if the defendant takes responsibility for the
crime and assists the authorities in their investigation.

Types of white collar crimes

Bank fraud- To engage in an act or pattern of activity where the purpose is to defraud a
bank of funds.
Blackmail- A demand for money or other consideration under threat to do bodily harm, to
injure property, to accuse of a crime, or to expose secrets.
Bribery- When MONEY , goods, services, information or anything else of value is
offered with intent to influence the actions, opinions, or decisions of the taker. You may
be charged with bribery whether you offer the bribe or accept it.
Embezzlement- When a person who has been entrusted with money or property
appropriates it for his or her own use and benefit.
Racketeering- The operation of an illegal business for personal profit.
Larceny/theft- When a person wrongfully takes another persons money or property with
the intent to appropriate, convert or steal it.
Source: sociology themes and perspectives

Causes of white collar crimes

Prevention of white collar crimes

Get Access Control Installing an access control system can help to protect your
business. The system can restrict employees and visitors from building areas where
sensitive and valuable information is being stored.
Create System of Checks Have a system in place that requires people to sign-in when
visiting your business. Youll also want to use this sign-in system when people borrow
and use valuable office equipment.
Source: http://www.hueandcry.com/blog/access-control/how-to-prevent-whitecollar-crimes-at-your-business/

Corporate crime
The Australian criminologist John Braithwaite defined corporate crime as "the
conduct of a corporation or employees acting on behalf of a corporation, which is
proscribed and punishable by law." Basically corporate crime is committed by any
person through the venue of his employment that benefits the business. This means
that if an employee does something illegal to benefit the organization, the
corporation itself can be held liable for the employees action.

Young (1989)Sutherland found that criminal behavior of these corporations was 'normal,'
that is to say, they all engaged in illegal labor practices, falsified advertising, stole patents
and copyrights from each other, defrauded their customers, and conspired to control the
making and the marketing of goods and services.
He showed that 97% of the corporations were recidivists. That is, when they were
caught and punished, they committed more crime. That compares to 50% or so of the
individuals who commit new crime after being released from prison.
Sutherland also found that corporate officials felt contempt for the law. This means that
they didn't want laws to be passed to control their harmful behavior; they didn't want the
laws enforced and they didn't want to be punished personally if caught.

Sutherland found that corporations hired public relations people to polish the image of
the company rather than change its criminal ways. Company officers donated to charity,
sponsored patriotic events, gave token grants to colleges and to needy causes but did so to
make a good impression with the public so they could do business as usual without
obeying the law.

Corporate criminal liability

Corporate liability simply means the extent to which a corporation is responsible for the
actions of its employees. There are two ways in which a corporation can be liable:
Strict liability
Vicarious liability
Strict liability-This is when an act causes damage, injury or death, even in the absence of
criminal intent. This is used as a way of forbidding the act from occurring again. For
instance a restaurant is serving food that is expired. Although the chef may have the
owners interests by serving expired food rather than throwing it away; the chef himself
did not intend to do anything illegal but in the end customers were ill. The owner could
then be liable for the chef actions.
Vicarious liability-This means that an employer is responsible for an employees action
when the employee action negligent ways. If for instance, an employee who imbibes a
few long island ice peas on his delivery route get into an accident, the employer would be
liable for any damages, injury or death that results from his employees action. This is
true even if the employer did not know that his employee was drinking on the job.

Critics to Sutherland work

David Nelkan (2002) believes Sutherlands definition is open to criticism.Fr example,
crimes may be committed by people of high social status outside of their occupations.
Some crime may be the responsibility of organizations or corporations (often called
corporate crimes) rather than committed by individuals.
Gary Slapper and Steve tombs (1999) argue that some of the definitional problems can be
overcome by distinguishing between white collar crimes and corporate. In their views the
term white collar should only be applied to crimes by the individuality rich or powerful
which are committed in the furtherance of their own interests, often against corporations.
Corporate crime on the other hand are crimes committed by or for corporation which act
to further their interest rather than those of the individual together.