Corporate financial crime: social diagnosis and treatment
| Pages | 28-40 |
| DOI | https://doi.org/10.1108/13590790910924948 |
| Published date | 02 January 2009 |
| Date | 02 January 2009 |
| Author | Laura L. Hansen |
Corporate financial crime: social
diagnosis and treatment
Laura L. Hansen
University of Massachusetts Boston, Boston, Massachusetts, USA
Abstract
Purpose – The purpose of this viewpoint paper isto assist in finding solutions for the growing moral
and social issues of financial crime plaguing corporations today.
Design/methodology/approach – Methodologyincludesthesynthesisofexistingtheoriesin
economic sociology and criminology to “diagnose” and “treat” the existing flaws in corporate
structures that have led to malaise and malfeasance. Theories include differential association,
self-control, and control balance, taking into consideration the characteristics of individuals and
corporate structures.
Findings – Findings suggest that corporate structure has tobecritically scrutinized and changes
implemented, including close examination of informal and formal communication and salary
structures.
Practical implications –This paper suggests concrete strategies and policy changes for regulators,
corporate decision makers, and academics.
Originality/value –The synthesis of existing theories in white collar malfeasance and crime
provides a template to increase corporate social responsibility and promote policy/regulatory changes
in the current economic climate.
Keywords Crimes, Financialcontrol, Regulation, Corporategovernance
Paper type Viewpoint
Introduction
Unlike conventional or street crime, white collar crime does not strike fear in the hearts
of the American people. In the past few decades, the threat of conventional crime has
driven people behind gated communities and into the perceived sanctuary of Suburbia.
Yet white-collar crime has cost the USA several times more monetarily to each and
every one of us than all conventional and street crimes combined, not to mention the
social cost of losing faith in our corporations. This is demonstrated by the history of
financial malfeasance on Wall Street, including the insider trading scandals of the
1980s as well as more current cases in financial institutions such as the alleged
wrongdoings in the Bear Stearns debacle of this year. Financial crime globally is
rapidly more visible as exemplified by the alleged failure of Britain’s regulatory
agencies to control institutions like HBOS and the Bank of England (Seib, 2008).
Additionally the Royal Bank of Scotland scandal demonstrated poor internal
regulatory practices. The purpose of this paper is to offer diagnostic tools and
treatment suggestions that corporations can implement to help prevent financial
crimes from happening within their own walls.
Frequently, corporate malfeasance and social indiscretions are handled in civil
rather than criminal court, and rarely broadcasted as often for mass consumption on
television news programs as conventional crime, save the occasional magazinearticle
devoted to the topic (Morris, 2008). Diverting white collar crime to civil courtgenerally
results in modest fines and little retribution, when compared to the revenue and assets
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/1359-0790.htm
JFC
16,1
28
Journal of Financial Crime
Vol. 16 No. 1, 2009
pp. 28-40
qEmerald Group Publishing Limited
1359-0790
DOI 10.1108/13590790910924948
Get this document and AI-powered insights with a free trial of vLex and Vincent AI
Get Started for FreeStart Your Free Trial of vLex and Vincent AI, Your Precision-Engineered Legal Assistant
-
Access comprehensive legal content with no limitations across vLex's unparalleled global legal database
-
Build stronger arguments with verified citations and CERT citator that tracks case history and precedential strength
-
Transform your legal research from hours to minutes with Vincent AI's intelligent search and analysis capabilities
-
Elevate your practice by focusing your expertise where it matters most while Vincent handles the heavy lifting
Start Your Free Trial of vLex and Vincent AI, Your Precision-Engineered Legal Assistant
-
Access comprehensive legal content with no limitations across vLex's unparalleled global legal database
-
Build stronger arguments with verified citations and CERT citator that tracks case history and precedential strength
-
Transform your legal research from hours to minutes with Vincent AI's intelligent search and analysis capabilities
-
Elevate your practice by focusing your expertise where it matters most while Vincent handles the heavy lifting
Start Your Free Trial of vLex and Vincent AI, Your Precision-Engineered Legal Assistant
-
Access comprehensive legal content with no limitations across vLex's unparalleled global legal database
-
Build stronger arguments with verified citations and CERT citator that tracks case history and precedential strength
-
Transform your legal research from hours to minutes with Vincent AI's intelligent search and analysis capabilities
-
Elevate your practice by focusing your expertise where it matters most while Vincent handles the heavy lifting
Start Your Free Trial of vLex and Vincent AI, Your Precision-Engineered Legal Assistant
-
Access comprehensive legal content with no limitations across vLex's unparalleled global legal database
-
Build stronger arguments with verified citations and CERT citator that tracks case history and precedential strength
-
Transform your legal research from hours to minutes with Vincent AI's intelligent search and analysis capabilities
-
Elevate your practice by focusing your expertise where it matters most while Vincent handles the heavy lifting
Start Your Free Trial of vLex and Vincent AI, Your Precision-Engineered Legal Assistant
-
Access comprehensive legal content with no limitations across vLex's unparalleled global legal database
-
Build stronger arguments with verified citations and CERT citator that tracks case history and precedential strength
-
Transform your legal research from hours to minutes with Vincent AI's intelligent search and analysis capabilities
-
Elevate your practice by focusing your expertise where it matters most while Vincent handles the heavy lifting