Trust: the unwritten cost of white-collar crime

2015 ◽  
Vol 23 (1) ◽  
pp. 87-101 ◽  
Author(s):  
Thomas E Dearden

Purpose – The purpose of this study is to empirically assess the theorized importance of trust and resource removal following white-collar crime. Design/methodology/approach – Two studies are conducted using data from the Washington Post and ABC News Poll following the savings and loan scandal and the dotcom bust. The first examines trust in corporate contexts, and the second examines direct resource withdrawal from financial institutions. Findings – Results of a series of logistic regressions suggest that trust is impacted by high-profile white-collar crime. Models 1 and 2 find evidence that trust is a strong predictor of belief in investing in a given industry. Models 3 and 4 provide evidence that high-profile trust breaches lead to resource withdrawal, adding to the economic damages incurred directly from white-collar crime. Social implications – This study provides evidence that white-collar crime can create much larger financial consequences than immediate losses. Originality/value – Despite considerable theoretical ties between white-collar crime and trust, little empirical evidence exists to support this notion. This study provides two empirical studies that address the theoretical link.

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jill O. Jasperson ◽  
Thomas E. Dearden ◽  
Ronald Mellado Miller

Purpose In 2015, Utah enacted the first white-collar crime (WCC) registry. Similar to sex offender registries, this registry provides demographic information to the public. Utah’s law includes convicted offenders of second-degree felonies for a variety of non-violent, financial crimes, including securities fraud, insurance fraud and theft by deception (H.B. 378, 2015). The purpose of this paper is to examine the perceptions of this new registry. Design/methodology/approach A survey was built in 2016 to better understand the perceptions of said WCC registry. This paper considers the relationships between demographic variables, fear of crime and support for Utah’s WCC registry using data from over 968 university students in Utah. Findings The authors find strong support for the registry, with 76% of the sample supporting its implementation. Only one variable, social political affiliation, was significant. Those who defined themselves as social strong liberals were more likely to select somewhat support rather than definitely support the registry. Originality/value This is the first paper that we know of to examine support for a WCC registry.


1990 ◽  
Vol 36 (3) ◽  
pp. 309-341 ◽  
Author(s):  
Kitty Calavita ◽  
Henry N. Pontell

This study examines fraud in the savings and loan industry as a case study of white-collar crime. Drawing from extensive government reports, Congressional hearings, and media accounts, the study categorizes three types of savings and loan crime and traces them to the competitive pressures unleashed by deregulation in the early 1980s, within the context of a federally protected, insured industry. In addition, the study delineates the limitations of the enforcement process, focusing on the ideological, political, and structural forces constraining regulators. Although savings and loan crime is in many respects similar to corporate crime in the manufacturing sector, a relatively new form of white-collar crime, referred to as “collective embezzlement,” permeates the thrift industry. The study links the proliferation of collective embezzlement and other forms of thrift crime, as well as the structural dilemmas that constrain the enforcement process, to the distinctive qualities of finance capitalism.


Law & Policy ◽  
1995 ◽  
Vol 17 (1) ◽  
pp. 23-55 ◽  
Author(s):  
WILLIAM K. BLACK ◽  
KITTY CALAVITA ◽  
HENRY N. PONTELL

2019 ◽  
Vol 5 (3) ◽  
pp. 168-188
Author(s):  
Valeria Abreu ◽  
Edward Barker ◽  
Hannah Dickson ◽  
Francois Husson ◽  
Sandra Flynn ◽  
...  

Purpose The purpose of this paper is to identify offender typologies based on aspects of the offenders’ psychopathology and their associations with crime scene behaviours using data derived from the National Confidential Enquiry into Suicide and Safety in Mental Health concerning homicides in England and Wales committed by offenders in contact with mental health services in the year preceding the offence (n=759). Design/methodology/approach The authors used multiple correspondence analysis to investigate the interrelationships between the variables and hierarchical agglomerative clustering to identify offender typologies. Variables describing: the offenders’ mental health histories; the offenders’ mental state at the time of offence; characteristics useful for police investigations; and patterns of crime scene behaviours were included. Findings Results showed differences in the offenders’ histories in relation to their crime scene behaviours. Further, analyses revealed three homicide typologies: externalising, psychosis and depression. Practical implications These typologies may assist the police during homicide investigations by: furthering their understanding of the crime or likely suspect; offering insights into crime patterns; provide advice as to what an offender’s offence behaviour might signify about his/her mental health background. Findings suggest information concerning offender psychopathology may be useful for offender profiling purposes in cases of homicide offenders with schizophrenia, depression and comorbid diagnosis of personality disorder and alcohol/drug dependence. Originality/value Empirical studies with an emphasis on offender profiling have almost exclusively focussed on the inference of offender demographic characteristics. This study provides a first step in the exploration of offender psychopathology and its integration to the multivariate analysis of offence information for the purposes of investigative profiling of homicide by identifying the dominant patterns of mental illness within homicidal behaviour.


2019 ◽  
Vol 46 (8) ◽  
pp. 992-1003
Author(s):  
Paul Manning

Purpose The global financial crisis (GFC) undermined the legitimacy of orthodox economic assumptions, which nevertheless continue to frame business school pedagogy. In consequence, there is an opportunity for socio-economic insights to be more fully incorporated into the business school curriculum. This paper reports and reflects on a socio-economic case study that was delivered to MBA students. The purpose of this paper is to demonstrate that the developing literature on behavioural economics (BE) has the potential to enhance students’ social economic understanding of key areas of the curriculum. Design/methodology/approach The paper presents an inter-disciplinary socio-economic teaching case that was informed by insights from BE. The teaching case concerned a socio-economic understanding of corruption and white-collar crime. It was also inter-disciplinary to include inputs from business history and criminology. The aim of the teaching case was to develop an appreciation among students that corruption and white-collar crime can be analysed within a social economics lens. Findings The teaching case example discussed in this paper offered an alternative socio-economic understanding to core areas of the MBA curriculum, enabling students to apply a behavioural economic approach to corruption and more generally to white-collar crime. The findings derived from this case study are that behavioural economics has the potential to enhance the teaching of socio-economics. Practical implications The GFC presents an opportunity to re-shape the business school curriculum to acknowledge the centrality of socio-economics and consequently to offer an alternative to the dominant ontological assumptions – taken from the economic understanding of rationality – that have previously under-pinned business school pedagogy. Originality/value The originality of this paper is to apply BE to a socio-economic teaching case studies in core subject areas of the MBA curriculum.


2017 ◽  
Vol 24 (4) ◽  
pp. 529-540
Author(s):  
Paul Eisenberg

Purpose This paper aims to approach fundamental topics of financial crime and the law. What does constitute financial crime? Which field of law is best suited to address the threats of transgression by financial executives? What does motivate highly rewarded financiers to become white collar criminals? Design/methodology/approach To answer these research questions, contemporary theories of criminology in general and of white collar crime in particular, as well as theories on motivation, are critically discussed. Benefits and limitations of the theories in use are exemplified on the background of the London Interbank Offered Rate (LIBOR) scandal. Findings The paper criticises that the state-of-the-art theories are not able to embrace financial criminality in its entirety. A provoking pace for further research might be that of psychopathic disorders among white collar criminals. Thus, white collar crime maintains its challenging character. Originality/value This paper provides a thorough testing of multidisciplinary theories that emerged over the past decades against the recent LIBOR scandal. The research questions addressed and the methodologies applied provide a framework for the assessment of the prevailing theories against other financial scandals.


2017 ◽  
Vol 25 (5) ◽  
pp. 15-17

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings Talk of blue-collar and white-collar workers will seem faintly outdated for many HR managers. For some, blue-collar workers will conjure up images from the 1970s and 1980s of striking mineworkers, some of the terrible conditions in steel works or in car factories in the pre-robot era. And as for white-collar workers, again this term seems a little anachronistic, albeit it has recently been adopted when referring to computerized “white-collar” crime. And as for pink-collar workers, this surely was left for dead in the 1970s along with bell-bottom flares and male perms. Practical implications The paper provides strategic insights and practical thinking that have influenced some of the world’s leading organizations. Originality/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.


1998 ◽  
Vol 44 (3) ◽  
pp. 367-387 ◽  
Author(s):  
Susan Will ◽  
Henry N. Pontell ◽  
Richard Cheung

Orange County's bankruptcy is the largest governmental bankruptcy in U.S. history. Initial reports blamed the county's financial difficulties on the county treasurer's gambling with taxpayer dollars in the high-risk derivative market. This article forwards the argument that it was not simply “risky business” that caused the bankruptcy; rather, fraud and other forms of white-collar crime played a significant role in the $2 billion debacle. Using concepts and theories from the literature on white-collar crime and drawing comparisons with other financial scandals, most notably the savings and loan crisis, the authors argue that the financial downfall of Orange County was due to a “criminogenic environment” that allowed for concerted ignorance among officials who were motivated by a fear of falling from their positions of power.


Criminology ◽  
2020 ◽  
Author(s):  
Mary Dodge

The inclusion of gender in the field of white-collar crime represents a relatively new and challenging area of study and research. The existing information on this topic is scarce, though research is emerging at a steady pace on women who commit offenses and on victimology. Several reasons explain the lack of attention on women who commit white-collar crime and patterns of victimization. First, historical research on people who commit offenses focused on men because they committed the highest number of crimes. Illegal activities committed by women were viewed as aberrations that rarely occurred. Initial empirical studies and theories in criminology were developed based on young male delinquents who were engaged in the majority of offenses and white-collar crimes remained anonymous deeds that, historically, received little recognition. The trend to study males holds true, despite the rising number of females who have become involved in the criminal justice system. Young boys and men continue to outpace women on almost all criminal offenses. Second, women were engaged in domestic duties that hindered their participation in the workforce. As a consequence of their status as wives, mothers, and homemakers the crimes women committed were related to prostitution, shoplifting, welfare fraud, and embezzlement. Women had few opportunities to commit corporate or occupational white-collar crime. Though women fought to gain equal rights, particularly in the workplace, high-level positions in corporations were rare and the glass ceiling prevented advancement in many companies. Third, until the mid-1970s few feminist scholars were active in the fields of criminology and criminal justice, which stunted growth in the area. Finally, the debates over definitional issues and lack of access to large data sources on white-collar crime stymied research efforts. The problematic nature of deciding what actions constitute white-collar crime emerged almost immediately after Edwin Sutherland’s 1939 presidential address at the American Society of Sociology (later renamed the American Sociological Association). Sutherland argued that a huge portion of crime committed by respectable businessmen in positions of power was being ignored, despite the serious harm caused by their actions. The myopic attention on street-level crime resulted in societal, scholarly, and journalistic failures to acknowledge suite-level offenses and victims. While scholarly efforts to explore white-collar crime grew, the idea that women might be involved failed to emerge until 1975. Incidents of women committing white-collar crime were so rare that fraudulent schemes were the exception to the rule. Scholars noted that low-level white-collar offenses by women, such as embezzlement, may be worth investigating, though many people believed these actions represented pink-collar crimes. The lack of opportunity in male dominated corporate and professional realms resulted in few women who participated in, for example, insider trading, Ponzi schemes, or price-fixing. A few female scholars, however, recognized that the issue was not about gender and the ability to commit white-collar crime, but instead depended on opportunity.


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