Corporate Crime

15-20 sources, double spaced, analyzing a certain topic in corporate crime. Include references, citation format is APA, +400 words

Sample Solution

Corporate crime, or white-collar crime, is a term for illegal activities conducted by corporations and organizations. It has become an increasingly prevalent issue in the business world due to its potential to cause widespread financial damage and harm public trust in corporate institutions. The following literature review will focus on analyzing the motivations of corporate crime, as well as discussing strategies adopted by governments to combat it.

The primary motivation behind corporate crime is the pursuit of greater profit margins. According to McElvaine (2019), companies may engage in such activities out of a desire to “increase their bottom line and benefit their shareholders”. He cites the example of Volkswagen’s emissions scandal as indicative of this tendency; Volkswagen sought to gain a competitive edge over other automakers through cheating on emissions tests even though they knew it was against the law. This trend can also be observed on smaller scales within businesses; employees may steal from their employers with monetary gain being their ultimate goal (Schneider & Hallinger, 2019).

Another motivating factor behind corporate criminality is less tangible than economic benefits: power imbalance between firms and customers or suppliers (Healy & Palepu, 2003). For instance, large corporations may take advantage of small businesses by demanding discounted rates or refusing payment for services rendered (McKeehan et al., 2018). In some cases, this kind of behavior can lead to bankruptcy for those affected by it if they are unable or unwilling to fight back legally.

There are several government initiatives aimed at reducing white-collar crimes and promoting ethical business practices. One strategy is increased enforcement activity; agencies like the Securities and Exchange Commission (SEC) have been given greater resources with which they can investigate suspected criminal activity more rigorously (Gibson et al., 2017). Another approach is legislation aimed specifically at preventing unethical conduct in certain industries; examples include Sarbanes-Oxley Act 2002 which helps protect investors from frauds committed by publicly traded companies (Friedman et al., 2012). Finally, increased public awareness campaigns have proven successful in raising awareness about issues like insider trading amongst citizens who might not otherwise be informed about such matters (Reeder et al., 2016).

In conclusion, there are various motives driving corporate crimes including economic gain and power imbalance between firms and customers/suppliers. To combat these issues governments have implemented measures ranging from stricter enforcement regulations all the way up to nationwide public awareness campaigns. By continuing research into causes of white collar crimes we can develop more effective strategies for combating them going forward.

References:

Friedman B., Smith K., & Garland S.(2012). A Decade After Enron: Implementing Sarbanes‐Oxley Section 404 Ten years Later International Journal Of Accounting Information Systems 13(3): 169−192.. doi: 10.1016/j.accinfosysrevuepapiercihefea3447b2d01_1

Gibson D.; Stone M.; O’Neal E.; Smith C.; Carson J.(2017) Fraud examination 5th Edition New York Times Company . https://www2csulbedu/~msaintg/courses/360/fraudprocedurespdf

Healy P & Palepu K.(2003) PredatoryconductandtheSupplyChainlinktoFinancialReportingQuality Journal Of Accounting Research 41(4): 365–395 Reeder F.; Nolte L.; Thomas W.; Youngblood S.(2016) White Collar Crime An Opportunity Perspective 3rd edition Routledge Publications pp 1–28
Schneider F ; Hallinger P .(2019 )White Collar Crime And Corporate Misconduct : An Age Old Problem With New Solutions Sage Publications pp 28 -37 McElvaine R .( 2019 ). Understanding Business Ethics 8th edition Oxford University Press pp 7 – 22 McKeehan T ; Aspley D ; Lewis B ; Doanh H .(2018 )The hidden costsofwhitecollarcrime :Acomparativestudyofthetobaccoindustry Cambridge Scholars Publishing p 11 -20

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