White Collar Criminology: Crime in the Suites
Crime in the Corridors of Power
White-collar crime refers to non-violent, financially motivated crimes committed by individuals, businesses, and government professionals in the course of their legitimate occupations. The term was popularized by Edwin Sutherland in 1939, who challenged criminology to look beyond street crime and examine the harms caused by respected members of society.
White-collar crime is extraordinarily costly. The financial losses from white-collar crime far exceed those from street crime. Yet white-collar offenders are prosecuted less frequently and punished less severely than street criminals. This disparity raises fundamental questions about justice, power, and the definition of crime.
Types of White-Collar Crime
Occupational Crime
Occupational crime is committed by individuals for personal gain in the course of their employment. Embezzlement, insider trading, and fraud by employees fall into this category.
Corporate Crime
Corporate crime is committed by individuals acting on behalf of a corporation, typically to benefit the organization. Price fixing, environmental violations, and financial fraud are examples.
State-Corporate Crime
State-corporate crime involves the collaboration of state agencies and corporations in illegal activities.
The Costs of White-Collar Crime
The financial costs are enormous. The savings and loan crisis, the Enron scandal, and the 2008 financial crisis each involved losses of hundreds of billions of dollars.
Beyond financial costs, white-collar crime causes physical harm. Dangerous products, environmental pollution, and workplace safety violations injure and kill.
Enforcement Challenges
White-collar crime is difficult to detect, investigate, and prosecute. Offenses are complex and technical. Perpetrators have resources to mount legal defenses. Regulatory agencies are often underfunded.
The criminal justice system treats white-collar offenders more leniently, reflecting their social status and the perception that their crimes are less serious.
Theories of White-Collar Crime
Differential Association
White-collar crime is learned through interaction with others who define such behavior favorably.
Anomie and Strain
Corporate cultures that emphasize success at any cost can produce criminal behavior.
Institutional Anomie
The dominance of economic values in society creates pressure for illegal means of achieving success.
FAQ
Why is white-collar crime punished less severely?
Several factors: the social status of offenders, the complexity of cases, the difficulty of proving intent, and cultural perceptions that white-collar crime is less serious.
Is white-collar crime really crime?
Yes. Sutherland argued that white-collar offenses meet all the criteria of crime—they involve legally prohibited behavior subject to state sanction.
How can white-collar crime be prevented?
Stronger regulation, more resources for enforcement, corporate compliance programs, whistleblower protections, and cultural change within organizations.
What is the difference between fraud and embezzlement?
Fraud involves deception to obtain money or property. Embezzlement involves the misappropriation of funds entrusted to one’s care. Both are forms of white-collar crime.
Conclusion
White-collar crime causes enormous harm yet receives insufficient attention from criminology and from the criminal justice system. Understanding and addressing this form of crime requires examining power, opportunity, and the social construction of criminality. For further reading, see organized crime and the study of corporate regulation.