Introduction
Law is one of the pillars that ensures the stable functioning of society, its smooth operation, and its continued evolution. It is the system of rules recognized by a particular country that regulates the actions of its citizens and imposes penalties for violating them. In this way, the law establishes the framework for interaction among individuals, organizations, and governmental bodies. It means that society remains healthy and grows when all laws are observed and the government and relevant regulatory agencies ensure that no serious violations occur.
Furthermore, the legal framework established by the law implies that all individuals are equal and have the same opportunities, obligations, and duties (DiMarino and Roberson, 2013). Unfortunately, this idea often fails in numerous cases due to corruption, corporate crime, or the misuse of authority for private gain (DiMarino and Roberson, 2013). Under these conditions, understanding the problem and its investigation is crucial for a deeper understanding of how the law influences societies and their evolution.
Thus, this essay analyzes corporate crimes, specifically white-collar crime, their impact on communities, their development, and people’s attitudes toward them. The paper uses the situation in Jamaica to understand the significant characteristics of the issue, its influence on society, and its impact. The state is selected because of the systemic issues observed there and their critical impact on its evolution.
Thus, corporate crime is often defined as a type of white-collar crime committed by people within their legitimate occupations to benefit a particular organization (DiMarino and Roberson, 2013). The problem discussed in the paper is that corporate crime is challenging to detect, investigate, and prosecute due to its unique characteristics and specific aspects. Moreover, it may be linked to systemic issues within the state, making it even more complex to investigate and analyze.
Furthermore, the paper focuses on cultivating a deeper understanding of corporate crime, its roots, and its impact on communities. For this reason, both historical and contemporary perspectives on the issue are offered and discussed. Moreover, white-collar crime, its types, causes, and outcomes are investigated in the context of Jamaica.
The paper also examines how corporate crime affects fundamental social institutions, including the family, education, and public sectors. It is essential for acquiring a deeper understanding and engaging in discussion. The essay will also investigate the state’s role in addressing corporate crime, its impacts, and creating the framework for its investigation and punishment.
The discussion will help to prove several important ideas. Firstly, the essay will argue that corporate crime is a systemic issue that is only possible when the government fails to devote sufficient attention to the problem or overlooks it. Moreover, the paper will demonstrate that corporate crime has numerous adverse effects on society, leading to stagnation and a lack of future opportunities. For this reason, the essay delves into corporate crime, using Jamaica as its backdrop, and offers essential definitions, discussing its significant effects.
Corporate Crime
Corporate crime is one of the most complex criminal issues requiring much attention. Currently, it is endemic to society, with numerous cases reported in newspapers, including financial manipulation, fraud, cartels, bribery, corporate human rights violations, and environmental harm (van Erp, 2018). Thus, the term “corporate crime” is closely related to white-collar crime, which Edwin Sutherland first defined in 1939 (Clarkson and Darjee, 2022). He offered the definition stating that it is a type of violation committed by a person of high social status in the course of their occupation (Sutherland, 1945).
At the same time, nowadays, the term remains vaguely defined in the literature because of numerous aspects peculiar to it and the diversity of features peculiar to every case. White-collar crime may also encompass illegal or unethical acts that violate public trust (Clarkson and Darjee, 2022). Thus, regardless of the multiple definitions, the offender’s high social status is always highlighted. It means that corporate crime involves individuals with specific authority levels and can affect the functioning of the entire community.
Furthermore, corporate crime usually has much more severe impacts than conventional crime. They differ in various aspects, such as magnitude, prominent undetected figures, and physical and environmental costs (Clarkson and Darjee, 2022). For instance, in Jamaica, corporate crime costs approximately $68 billion per year, a substantial sum given the country’s current needs (Clarke, 2017).
At the same time, corporate crime can have a profoundly detrimental impact on victims’ psychology, underscoring the need to consider an additional aspect of this type of misconduct (Clarkson and Darjee, 2022). The psychological effects are more difficult to manage as they might lead to the development of mental health issues in individuals and deteriorated quality of life (Clarkson and Darjee, 2022). For this reason, white-collar crime is a complex problem affecting all aspects of communities and requiring much attention and effort to resolve it.
Historical Perspective
As previously stated, Edwin Sutherland’s modern definition of corporate crime was first offered in 1939. However, it does not mean that the given type of misbehavior was absent previously. The increased attention to the issue nowadays can be attributed to the emergence of numerous bureaucracies and sophisticated governmental bodies, along with the rise of giant corporations integrated into state operations, which provide malefactors with numerous opportunities for committing crimes (Sutherland, 1983).
Previously, corporate crime took other forms and had a reduced impact on society because giant firms were less integrated into social and political life. Thus, the abuse of power and misuse of authority in the current position have consistently been among the crimes associated with the state machine’s work (Sutherland, 1945). However, the evolution of business, along with the rise of corporations’ power, shifted priorities.
Historically, the shift in attitude towards corporate crime occurred in the mid-20th century. It was shaped by several factors that emerged during that period. Firstly, the rise of giant corporations and their growing importance in society created an opportunity window for individuals with specific authority (Sutherland, 1983). As a result, increases in money laundering, tax evasion, or the provision of extra benefits to corporations were observed (DiMarino and Roberson, 2013). It emphasized the need to establish a framework to address the problem and investigate it, to prevent further deterioration and its potential criticality. The shift in approach led to numerous studies and theoretical perspectives on the topic.
Contemporary State
Nowadays, corporate crime, precisely white-collar crime, is viewed as one of the most dangerous offenses, causing significant damage to society. At the same time, scientists have begun to explore it to determine how governments and private corporations interact and become partners in crime (Tombs and Whyte, 2020). The problem is that certain groups and institutions, which are usually expected to ensure the law is observed, engage in relationships that undermine the functioning of the state and its central institutions (Tombs and Whyte, 2020). As a result, it becomes difficult to detect and investigate such cases. Criminals may impact law enforcement agencies and legal decision-making (Tombs and Whyte, 2020). For this reason, there is a need to develop tools that help address and resolve the problem.
Furthermore, corporate crime implies that the distinction between the public and private sectors becomes less evident, as the lines between them merge. Malefactors might use public funds for private purposes, which directly threatens the community, its functioning, and its evolution. That is why, nowadays, white-collar crime is also viewed as a social problem requiring much attention.
Finally, the modern approach raises the issue of conventionalized corporate crime or misconduct, which is viewed as part of the culture or accepted by the majority (Tombs and Whyte, 2020). Such situations can be observed in societies with weak governance or high levels of corruption. For instance, in Jamaica, larceny by a servant is one of the most common types of white-collar crimes committed in the Country (Bourne, Brooks, and Quarrie, 2023). It is common, and most citizens view it as an integral part of their state apparatus (Tombs and Whyte, 2020). In this way, the modern perspective on corporate crime views it as a serious concern, implying that it involves misbehavior that may cause severe harm to communities.
Impact on Society
Thus, as stated previously, white-collar crime has numerous impacts on society, which explains its dangerous nature. As stated previously, along with the financial damage, it is crucial to consider the psychological impact of corporate crime on individuals, societies, and their well-being. It deprives societies of resources that could be used to support critical public services or to invest in projects essential to addressing existing needs.
Moreover, corporate crime fosters a culture of corruption. For instance, Jamaica, like many other developing nations, has a culture of corruption deeply ingrained in its society and widespread (Brown, 2018). This results in widespread acceptance of bribery and embezzlement, and in the avoidance of standard business practices (Brown, 2018). In many cases, a servant or government official is seen as someone who helps a company evolve (Brown, 2018). It can be viewed as a systemic outcome of corporate crime.
Furthermore, numerous and unaddressed white-collar crimes result in the deterioration of the government’s and states’ image. Regarding Jamaica, the country has already lost significant foreign investment due to organized corporate crime (Brown, 2018). Investors are not ready to start working in an unstable environment with high levels of risk and uncertainty (Brown, 2018).
In such a way, white-collar crime can be viewed as a systemic issue affecting individuals, groups, and countries. It highlights the lack of tools within society to regulate corporate issues and ensure they are addressed, thereby preventing further deterioration of the situation. At the same time, it might lay the groundwork for the emergence of serious crimes and more complex issues.
White Collar Crime: Types and Causes
From a modern perspective, crime is a serious issue that affects society and has numerous adverse consequences. At the same time, the term “white collar crime,” as a form of corporate offense, encompasses a broad range of offenses (Sagar, 2019). The existing body of literature provides numerous definitions of this type of misconduct, but lacks a definitive definition. It can be attributed to the complexity of the discussed problem and its numerous features.
Thus, Sutherland (1944) asks whether the word “crime” applies to the behavior regarding which decisions are made to perform illegal actions. At the same time, he emphasizes the dangers posed by the great concentration of wealth in the hands of monopolies and their threat to democracy (Sutherland, 1944). In this way, white-collar crime, as a problem linked to wealth and power, becomes a serious concern for society and its further development.
Furthermore, the necessity to define and discuss white-collar crime stems from its widespread nature and significance. Recent research indicates that these offenses affect approximately one-third of the global population (Sagar, 2019). In states such as Jamaica, the situation is even worse due to weak governance, corruption, and the integration of crime into government institutions (Bourne et al., 2023).
Although individuals engaged in white-collar crimes are considered criminals, they differ from traditional offenders because of their social status (Bourne et al., 2023). In most cases, they are highly educated, wealthy, socially connected, and influential figures playing essential roles in their communities (Sagar, 2019). It makes the investigation of cases more complex and, at times, even impossible due to the limited power and authority of regulatory bodies to address them (Sagar, 2019). For this reason, various types of white-collar crime flourish and threaten society.
White-collar crime also has specific motifs and causes, differentiating it from traditional misbehavior. The primary motivators for individuals to start acting illegally are the desire to control society, fear and anxiety due to changes in social status, a lack of social consciousness, and a lack of integrity (Sagar, 2019). Furthermore, the causes include weak and ineffective internal controls, greed and the desire to generate even greater wealth, and monetary and financial gains, as well as a poor corporate culture prevalent in the economy (Sagar, 2019).
As a result, these factors contribute to the emergence of a so-called fraud triangle, which is necessary for a person to commit a crime (Sagar, 2019). It includes opportunity, pressure, and excuses that are necessary for a person to be ready to commit a crime (Sagar, 2019). Traditionally, these causes are present in countries with weak governments and underdeveloped infrastructure.
Furthermore, white-collar crime encompasses numerous offenses that may share some characteristics. These include fraud, insider trading, Ponzi schemes, identity theft, embezzlement, money laundering, espionage, and counterfeiting (Bourne et al., 2023). Moreover, individual or corporate crimes can be committed by groups or organizations (Pusch and Holtfreter, 2021).
White-collar crime also has specific correlates, such as demographics. Statistics indicate that males are responsible for approximately 60% of such offenses (Pusch and Holtfreter, 2021). It can also be linked to the fact that women do not hold positions of power, thereby preventing them from participating in corporate offenses (Pusch and Holtfreter, 2021). This situation can be observed in Jamaica, where around 52,4% of white-collar crime is committed by men, while the percentage of women in regulatory bodies is critically low (Bourne et al., 2023). In this way, the desire for control, narcissism, and egocentricity contribute to the emergence of unintended consequences and the inclination to use available authority to achieve personal benefits.
Moreover, as stated previously, by nature, white-collar crimes are not physical in nature. Traditionally, they are more complex and require extra planning to succeed (Sagar, 2019). However, it means that the costs of this misconduct are high and impact various aspects of society’s work. The costs include financial and social costs, and both are critical (Sagar, 2019).
Analyzing financial costs, it is necessary to consider the billions lost due to unfair schemes, as seen in Jamaica, where numerous violations of this nature have been reported (Sagar, 2019). However, the social burden encompasses a radical decline in the quality of people’s lives, inflation, and a disrupted political order (Sagar, 2019). When assessing the overall impact of white-collar crime, it is impossible to focus on a single aspect. On the contrary, it is crucial to consider both costs, as they are interrelated.
A significant decline in the quality of people’s lives may lead to new issues that require greater government attention and additional spending. This means white-collar crime has cumulative, long-term effects (Sagar, 2019). If they become systemic, society gradually loses the opportunity and capability to address and eliminate them. This results in the establishment of a corporate culture of corruption and bribery, as seen in Jamaica (Bourne et al., 2023). Under these conditions, the revitalization of society requires radical and structural changes, along with the introduction of new internal control mechanisms that may be complex or even impossible within the existing political regime (Sagar, 2019). For this reason, white-collar crime impacts the whole state, its reputation, and the future of the nation, which makes it an even more significant concern compared to traditional offenses.
Theoretical Framework
The severity of white-collar crime and its negative impact on society necessitate the use of a specific theoretical framework for its analysis. Thus, the differences in opinions on the problem in the literature review nowadays indicate that multiple theories may be employed to discuss it. For instance, the labeling and deterrence theory, along with Marxism and conflict theory, might apply to the problem. Thus, white-collar criminals are labeled in this way as they are perceived as non-dangerous upper-class individuals, which differentiates them from traditional malefactors (Fredericks, McComas, and Weatherby, 2016). This label distinguishes them from others, affecting their position and role in communities and complicating investigations (Fredericks et al., 2016).
Furthermore, deterrence theory helps explain the nature of white-collar crime and its high recidivism rates. The framework implies that the threat and inevitability of punishment deter others from committing crimes (Fredericks et al., 2016). However, white-collar criminals are rarely punished, leading them to lack fear and be willing to repeat unfair actions (Fredericks et al., 2016). It results in higher recidivism rates and a unique position in society for these criminals.
Marxism and the central assumptions of the conflict theory might also be applicable. It states that social classes are in opposition due to differences in their nature and access to benefits (Fredericks et al., 2016). The higher social class has numerous advantages unavailable to others, so they want to protect them at any price. The same situation can be observed in cases of white-collar crime (Fredericks et al., 2016).
Utilizing the social power inherent in their positions, high-ranking criminals act to protect their benefits and generate additional ones (Fredericks et al., 2016). As a result, a conflict of interest arises that affects society and contributes to adverse effects. Altogether, the theoretical framework for addressing white-collar crime is established by utilizing labeling, deterrence, and conflict theories, which help explain the processes within a society and the causes of this type of offense.
White-Collar Crime and Aspects of Life in Jamaica
White-collar crime is all-pervasive and has numerous dimensions and effects. It impacts all aspects of life, including the public sector, financial sector, political system, infrastructure, employment, and education (Sagar, 2019). In Jamaica, the problem is topical and affects all aspects of the state. According to recent statistics, from 2015 to 2019, approximately 164 white-collar crimes were discovered and reported in Jamaica (Bourne et al., 2023).
The main types of offenses include embezzlement, fraud, financial deception, or breach of trust and responsibility (Bourne et al., 2023). Moreover, there was a 500% increase in the number of crimes of this nature from 2017 to 2018 and a 566.7% increase from 2018 to 2019 (Bourne et al., 2023). In 2022, arrests also increased by 59.7%; however, the problem remains topical and affects all aspects of people’s lives (Bourne et al., 2023). Jamaica fails to reduce the number of accidents of this sort due to inadequate controls and measures.
Thus, there is a direct correlation between the type of crime and the offender’s gender. In Jamaica, females are more likely to commit embezzlement offenses compared to males. At the same time, the latest statistics indicate that females are more likely to engage in financial manipulations or larceny (Bourne et al., 2023). The given distribution is explained by the fact that males are more often found in positions of high power and tend to be more aggressive in risk-taking (Bourne et al., 2023).
At the same time, the average age of those committing white-collar crimes in Jamaica is around 31 years (Bourne et al., 2023). It reveals that the state is plagued by a corporate culture of corruption and corporate crime, which impacts young people and those in positions of authority. This results in visible changes in all spheres and the emergence of critical issues that require specific attention. The inability to resolve the problem also evidences its systemic nature.
As stated previously, white-collar crime has high social costs, impacting the quality of people’s lives and limiting communities’ chances for evolution. For instance, Jamaica’s public sector is highly corrupt, and the state receives low scores for its efforts to control the problem (Brown, 2018). It is, to a certain extent, linked to the rise and spread of corporate crime, specifically white-collar crime (Brown, 2018).
In many cases, access to specific benefits or social guarantees is acquired through bribery or payment to a person in a position of authority. As a result, ordinary people suffer from the system’s reduced effectiveness and its inability to function effectively, thereby failing to meet the diverse needs of its constituents (Brown, 2018). As a result, people lose trust in their government and view the situation as the norm, one that cannot be resolved positively (Brown, 2018). It proves the structural nature of white-collar crime and both the financial and social costs associated with it.
Education is another sphere that often suffers from white-collar crime. In Jamaica, the issue is topical, as the sector’s functioning is often marred by corruption. For instance, the former Education Minister is implicated in a multimillion-dollar fraud scheme, having allegedly stolen public funds for personal use (Barrett, 2019).
The scheme to raise extra money involved a fictional program designed to help young people acquire the necessary education and find new employment opportunities (Barrett, 2019). However, the funds were stolen and used to conceal the activity, engage other parties, and ensure there would be no punishment. The case shows that white-collar crime is a severe issue in Jamaica. It undermines one of the fundamental institutions required for improved quality of life and people’s ability to earn money.
In such a way, the community of Jamaica suffers from corporate and white-collar crime. The manipulation of public funds, the misuse of authority for private purposes, and corruption deteriorate the quality of people’s lives and contribute to the establishment of a specific corporate culture. It affects individuals already involved in the work of various agencies, as well as those who may be compelled to participate in criminal schemes.
Public opinion acknowledges the existing problem and views it as a significant challenge to the state’s future (Brown, 2018). At the same time, most individuals are confident that it cannot be resolved using the available internal control options. It demonstrates that white-collar crime has high financial and social costs, leading to changes in communities and making corrupt practices a part of everyday interactions. This tendency increases the threat of corporate crime and its adverse impacts on communities.
Conclusion
In this way, corporate crime, particularly white-collar crime, is a serious concern that warrants considerable attention. The existing body of literature lacks a precise definition of the term due to the numerous aspects associated with it and the various forms that exist. Sutherland suggested that white-collar crime occurs when individuals of high social standing commit offenses in the course of their professional activities to obtain particular advantages. This misbehavior is traditionally associated with privileged social status, high income, and the opportunity to misuse authority. For this reason, it is not a traditional crime and requires extra attention.
The literature review also shows that being non-violent, white-collar offenses cause even more harm compared to traditional ones. They have financial and social costs, meaning that offenders damage communities’ budgets and, at the same time, contribute to the deterioration of their quality of life. It is achieved due to the lack of funds to support the necessary incentives and vulnerable groups.
Moreover, the state’s reputation suffers, which may impact foreign investment and the specific incentives associated with it. White-collar crime encompasses a range of types, including embezzlement, Ponzi schemes, fraud, and bribery. They imply that a person possesses a certain level of power that can be used to hide the crime scheme and avoid punishment.
White-collar crime can be examined through the lenses of deterrence, labeling, and conflict theories. The ability to avoid punishment does not deter individuals of this sort from committing crimes, which explains the high level of recidivism. Furthermore, white-collar offenders are not labeled as usual criminals, which means they acquire a specific and privileged status in society. Finally, conflict theory explains corporate crime as the opposition between social classes, with the desire to protect exclusive benefits available to a particular group at a given moment. As a result, the theoretical framework for discussing the problem comprises the assumptions necessary for understanding and evaluating corporate and white-collar crime.
Finally, the paper shows that Jamaica is one of the states suffering from white-collar crime and its spread. The lack of adequate internal controls and the rise of the corrupt corporate culture resulted in a significant increase in the number of these offenses committed annually. Bribery, fraud, larceny, and embezzlement are the most common types observed in the state.
The pervasive nature of white-collar crime in the state is evident in the machinations within the education ministry, suggesting the misuse of public funds for private purposes. As a result, numerous adverse effects have been observed in the state. The public sector experiences a lack of financing, as do education and employment incentives. Moreover, the poor image of local authorities affects relations with potential investors, potentially resulting in a lack of beneficial contracts for the state. Altogether, the investigation shows that white-collar crime is a hazardous phenomenon that might impact all spheres of the state’s functioning.
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