How modern psychology can help us understand white-collar criminals

2019 ◽  
Vol 26 (1) ◽  
pp. 61-73 ◽  
Author(s):  
Thomas E. Dearden
Keyword(s):  
Decision Making ◽  
White Collar Crime ◽  
Explanatory Power ◽  
White Collar ◽  
Potential Effect ◽  
Content Type ◽  
Sociological Factors ◽  
Psychological Theories ◽  
White Collar Offenders ◽  
Current Psychological

PurposeThis paper aims to add to the theoretical discussion of white-collar crime by introducing modern psychological decision-making literature and the potential effect on white-collar offending.Design/methodology/approachUsing a theoretical approach, literature on heuristics, innovation and stress, insight into why white-collar offenders decide to commit crime is posited.FindingsThe heuristics and strategies that people use to assist in decision-making process may inadvertently promote white-collar crime. For example, stress may inhibit white-collar offenders’ thinking, causing them to discount the risk of committing said offense; individuals may not challenge the success of carrying out a white-collar offense once it is considered; and generally, people will be more optimistic in considering their success of not getting caught.Originality/valueCurrently, the study of white-collar crime is discussed largely in the context of sociological factors. Current psychological theories have considerable explanatory power in understanding why white-collar offenders commit their crimes.

Revisiting employee fraud: gender, investigation outcomes and offender motivation

2015 ◽  
Vol 22 (4) ◽  
pp. 447-467 ◽  
Author(s):  
Paul Bonny ◽  
Sigi Goode ◽  
David Lacey
Keyword(s):  
Law Enforcement ◽  
White Collar Crime ◽  
White Collar ◽  
Content Type ◽  
Male Offenders ◽  
Occupational Fraud ◽  
Background Population ◽  
White Collar Offenders ◽  
Workplace Setting ◽  
Employee Fraud

Purpose – This paper aims to present the findings of a study examining fraud in the workplace setting, principally in the Australasian context. Although prior research into occupational fraud is conceptually rich, there is a lack of empirical evidence of this important but elusive problem. Design/methodology/approach – Based on investigative data from 14 participating firms, the paper provides insights into the gender breakdowns and stated motivations of offenders. The paper also provides evidence of the number of investigations, interviews and reports to law enforcement in these firms. Findings – The study finds that genders are evenly balanced for most firms, with females significantly outnumbering males in banking firms. Self-imposed financial hardship was the most popular motivator. Of the number of admissions to wrongdoing, only half were subsequently reported to law enforcement. Research limitations/implications – Particularly complex or advanced types of occupational fraud may go unreported or undetected: as a result, the figures presented in this study may be incomplete. Reported figures are based largely on historical data provided by respondents, and the authors are unable to report accurate details of the respondent firms. This makes it difficult to determine the frequency of offending against the background population. Practical implications – Investigators should continue to look for changes in the life circumstances of their staff. Such changes will give an indication of instances of staff living beyond their means and the sudden financial pressures that can compel occupational fraud. Instead of trying to supervise staff to an impractical degree, managers and proprietors would be well advised to be alert to the kind of pressures that their staff might experience. Social implications – Social control and detection measures are likely to be easier to implement and less invasive than technical controls. The study provides additional pressure to update traditional conceptualisations of the male white collar offender. While male offenders were responsible for larger losses per case, females were more numerous in the summary offence data. Originality/value – Gaining insights into the problem of employee fraud and white collar crime is difficult. The authors’ contribution in this paper is to provide empirical insights into the makeup of white collar offenders, including insights on gender.

The internationalization strategies of rapidly internationalizing high-tech UK SMEs

2014 ◽  
Vol 26 (5) ◽  
pp. 421-448 ◽  
Author(s):  
Dave Crick ◽  
James Crick
Keyword(s):  
Decision Making ◽  
Small And Medium Enterprises ◽  
Potential Effect ◽  
Small Sample ◽  
High Tech ◽  
Niche Markets ◽  
Content Type ◽  
Parental Decision Making ◽  
Internationalization Strategies ◽  
Medium Enterprises

Purpose – The purpose of this paper is to investigate aspects of causation and effectuation decision-making in respect of the planned and unplanned nature of the internationalization strategies of a small sample of rapidly internationalizing, high-tech UK small and medium enterprises (SMEs). These exhibit four different rates of scale of international intensity (percentage of overseas sales to total sales) and market scope (geographical coverage and commitment). Design/methodology/approach – Interviews with managers of 16 independently owned high-technology-oriented manufacturing SMEs were undertaken in this investigation to reduce the potential effect of bias from parental decision-making and firm size, also trade sectoral conditions. These were drawn from an existing database. Findings – Aspects of both causation and effectuation logic were evident in planned and unplanned aspects of decision-making. Moreover, industry factors were seen to affect internationalization strategies in various ways and not least in respect of the need to exploit windows of opportunity in international niche markets and the usefulness of utilizing managers’ experience and networks in the sector in which firms operated. Originality/value – The contribution of this study is to build on earlier work where authors have used different terminology to describe firms that have internationalized soon after their foundation. Specifically, with respect to the planned versus unplanned nature of respective internationalization strategies and the causation as opposed to effectuation logic in decision-making.

scholarly journals Behavioural economics and social economics: opportunities for an expanded curriculum

2019 ◽  
Vol 46 (8) ◽  
pp. 992-1003
Author(s):  
Paul Manning
Keyword(s):  
Business School ◽  
White Collar Crime ◽  
White Collar ◽  
School Curriculum ◽  
Behavioural Economics ◽  
Content Type ◽  
Teaching Case ◽  
School Pedagogy ◽  
Economic Understanding

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.

Theory in Social Psychology: Seeing the Forest and the Trees

2004 ◽  
Vol 8 (2) ◽  
pp. 193-200 ◽  
Author(s):  
Yaacov Trope
Keyword(s):  
Social Psychology ◽  
Decision Making ◽  
Scientific Inquiry ◽  
Explanatory Power ◽  
Social Judgment ◽  
Judgment And Decision Making ◽  
Social Psychological ◽  
Social Situations ◽  
Psychological Theories

The phenomena social psychology seeks to explain–how people think, feel, and act in response to social situations–are rich and diverse. Therefore, explanatory power, the simplicity of a model relative to its empirical scope, is an important desideratum for social psychological theories. A model achieves high explanatory power to the extent that it integrates narrower models within a unified conceptualization, reconciles conflicting findings, and makes novel predictions regarding specific phenomena. This article first relates explanatory power to the various facets of scientific inquiry (modeling, derivation, observation, evaluation, and decision) and then discusses this criterion as a guide for 2 theory-based lines of research my colleagues and I have conducted in the area of social judgment and decision making.

Financial crime – is there any way out of the theoretical deadlock?

2017 ◽  
Vol 24 (4) ◽  
pp. 529-540
Author(s):  
Paul Eisenberg
Keyword(s):  
Design Methodology ◽  
State Of The Art ◽  
White Collar Crime ◽  
White Collar ◽  
The State ◽  
Financial Crime ◽  
Content Type ◽  
The Past ◽  
Financial Scandals ◽  
Research Questions

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.

What does work mean to your workers?

2017 ◽  
Vol 25 (5) ◽  
pp. 15-17
Keyword(s):  
Design Methodology ◽  
White Collar Crime ◽  
White Collar ◽  
Blue Collar ◽  
Content Type ◽  
Blue Collar Workers ◽  
White Collar Workers ◽  
Pertinent Information ◽  
Hr Managers ◽  
Practical Implications

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.

White-Collar Crime

Criminology ◽  
2009 ◽  
Author(s):  
Sally S. Simpson
Keyword(s):  
Criminal Law ◽  
Chief Executive Officers ◽  
White Collar Crime ◽  
Chief Executive ◽  
White Collar ◽  
Street Crime ◽  
White Collar Offenders ◽  
Definition Of ◽  
Executive Officers

The meaning and definition of white-collar crime is deeply contested. Most criminologists recognize that white-collar crime is different from traditional “street” crime. Disagreements center on the scope of the behavior and who, ultimately, is classified as a white-collar offender. Generally, white-collar crimes are offenses conducted by guile or concealment that involve “upper world” offenders. Broad definitions of white-collar crime can include harmful acts which are not illegal (deviance) to more narrow definitions that are tied exclusively to violations of criminal law. Depending on which definition is used, white-collar offenders may include governments, businesses, chief executive officers, professionals, welfare cheats, and individuals who illegally download software or purposefully underreport income on their taxes.

Offender Decision Making in Corporate and White-Collar Crime

2017 ◽  
Author(s):  
Wim Huisman
Keyword(s):  
Decision Making ◽  
Corporate Crime ◽  
White Collar Crime ◽  
White Collar ◽  
Organizational Structures ◽  
Psychological Characteristics ◽  
Impulsive Behavior ◽  
Rational Decision ◽  
Prevention And Intervention ◽  
Rational Decision Making

Corporate and white-collar crimes are crimes committed by managers or other professionals acting in an occupational or business-related context. These crimes are generally viewed as outcomes of rational decision making rather than opportunistic or impulsive behavior. This chapter addresses offender decision making in corporate and white-collar crimes. It builds from, as well as critically reflects on, the rationality paradigm of white-collar decision making. It discusses sociodemographic and psychological characteristics of the managers who commit these crimes and the organizational structures and corporate cultures of the firms that are involved. The chapter also describes the situations in which these crimes are committed, and it reviews research on the perception and evaluation of choice in white-collar and corporate crime settings. The chapter discusses implications of research on white-collar decision making for prevention and intervention of white-collar and corporate crime.

scholarly journals Post-COVID-19 crisis travel behaviour: towards mitigating the effects of perceived risk

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Tafadzwa Matiza
Keyword(s):  
Decision Making ◽  
Perceived Risk ◽  
Travel Behaviour ◽  
Potential Effect ◽  
Tourism Industry ◽  
Potential Influence ◽  
Content Type ◽  
Global Tourism ◽  
Tourist Behaviour ◽  
The Impact

Purpose The purpose of this paper is to provide insight into the on-going COVID-19 pandemic and its potential influence on tourist behaviour in the short- to medium-term. While the influence of the pandemic on tourist’s perceived risk and its impact on their future travel behaviour is understandably yet to be established, the present paper discusses the potential nexus. Additionally, this paper provides tourism practitioners with some recommendations for mitigating the effect of potential heightened perceived risk on travel and tourism decision-making post the COVID-19 crisis. Design/methodology/approach The present paper synthesises contemporary academic literature on perceived risk and post-crisis tourism with emerging information associated with the unfolding COVID-19 crisis. Findings This paper draws empirical evidence from studies related to previous health crises and their impact on tourism, as well as tourist behaviour. By discussing previous studies within the context of the on-going COVID-19, it is possible to anticipate the influence that perceived risk associated with the pandemic may have on the post-crisis behaviour of tourists. Also, short-term measures to mitigate the effects of risk on tourism are posited to guide practitioners in the future recovery of the sector. Research limitations/implications The COVID-19 pandemic is an unprecedented and on-going crisis for the global tourism industry. Hence, the present paper serves as a primer to a broader discussion within the tourism discourse and provides theoretical direction for future tourism research. Practical implications Key to the recovery of the global tourism industry will be encouraging both domestic and international tourism activity. However, while the impact of the COVID-19 crisis on tourist behaviour is yet to be substantiated, previous research predicts a situation of heightened perceived risk and the potential cognitive dissonance that may negatively influence tourist decision-making. To mitigate this potential effect, governance, augmented immigration policy, destination media profiling, recovery marketing and domestic tourism will be critical interventions. Originality/value This paper is one of the first to discuss the potential influence of the COVID-19 pandemic on the post-crisis decision-making process of tourists and their conative behaviour. As a primer to further empirical research, this paper sets a pertinent research agenda for academic inquiry within an evolving and increasingly uncertain global tourism market.

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