Executive positions involved in white‐collar crime
| Date | 11 October 2011 |
| Published date | 11 October 2011 |
| Pages | 300-312 |
| DOI | https://doi.org/10.1108/13685201111173785 |
| Author | Petter Gottschalk |
| Subject Matter | Accounting & finance |
Executive positions involved
in white-collar crime
Petter Gottschalk
Norwegian School of Management, Oslo, Norway
Abstract
Purpose – The purpose of this paper is to present an empirical study of white-collar crime in
business organisations, to create insights into perceptions of potential offenders.
Design/methodology/approach – A survey instrument was developed and submitted
electronically to the chief financial officers of the 500 largest business organisations in Norway.
Findings – The study identified financial misconduct by chief executive officers in the company as
the crime associated with the most serious consequence for the company. However, a person in a
purchasing and procurement function is assumed to be the most likely involved in and vulnerable to
white-collar crime.
Research limitations/implications – This is a survey approach that does not reflect actual crime.
Practical implications – Both control mechanisms and ethics are needed to prevent and detect
white-collar crime.
Social implications – No executive should be left alone to handle business matters that can benefit
himself/herself. Rather, the four eyes principle should always be applied.
Originality/value – The paper provides statistical evidence that top-level executives are involved in
financial crime.
Keywords Norway, Chief executiv es, Crime, Control, Financial crime, White- collar crime,
Leadership positions, CFO
Paper type Research paper
Introduction
So long as there are weaknesses that can be exploited for gain, companies, other
organizations as well as private individuals will take advantage of illegal opportunities
as well as be taken advantage of. Financial crime might be defined as crime against
property, involving the unlawful conversion of property belonging to another to one’s
own personal use and benefit. Financial crime is profit-driven crime to gain access to and
control over property that belonged to someone else (Benson and Simpson, 2009; Pickett
and Pickett, 2002). The term white-collar crime expresses different concepts depending
on perspective and context. White-collar crime might be defined as financial crime
committed by white-collar criminals (Henning, 2009). Thus, the definition inclu des
characteristics of the crime as well as the criminal.
Money laundering is an example of financial crime often carried out as white-collar
crime (Abramova, 2007; Council of Europe, 2007; Elvins, 2003). Money laundering is a
sort of criminal activity trying to conceal the illegality of proceeds of crime by disguising
them as lawful earnings (Joyce, 2005; He, 2010; Ping, 2005; Schneider, 2004; Stedj e,2004 ).
The purpose of laundering is to make it appear as if the proceeds were acquired legally,
as well as disguises its illegal origins (Financial Intelligence Unit, 2008). Money
laundering takes place within all types of profit-motivated crime, such as embezz lement,
fraud, misappropriation, corruption, robbery, distribution of narcotic drugs and
trafficking in human beings (Økokrim, 2008).
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/1368-5201.htm
JMLC
14,4
300
Journal of Money Laundering Control
Vol. 14 No. 4, 2011
pp. 300-312
qEmerald Group Publishing Limited
1368-5201
DOI 10.1108/13685201111173785
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