Corporate fraud is regarded as a white-collar crime in most cases. Although the offense does not have a high standard, much is learned about restricting white collar crimes. These include the crimes of public corruption, organized crime, workers’ crimes and corporate crime. The principle of reducing corporate crimes is clear so that if the decision-maker is fair it can minimize the performance of all activities which have less advantage than the findings. The reduction of corporate crimes depends on the company executives who are expected to be sensitive to the punishment threats (Yeager and Peter Cleary,2016). The paper will discuss the various concepts of deterrence of corporate offense.
The primary challenge to limiting white collar crime is that the corporal organization has put more responsibility of limiting white collar crime to the law than it bears for the common crimes while making it even harder for the law to take the responsibility. However, for a successful deterrence of the corporate crime, it depends on traits of the offense and the offense as well as the context of the offense. The context of the crime varies considerably from the company size to the culture of the corporation. All the features in the framework of the crime are the ones that shape the place of the law in the priority of the management together with the executive’s sense of the legitimacy of the law (Schell-Busey et al., 2016).
Deterrence and the Dynamics of law
The effectiveness of legal penalties involved in deterring white-collar crimes depends on various factors. Some of these factors include the severity of the sentence, the consistency with which the sentence is imposed, the incentive of the individual as well as groups within the firm that comply with the law among much more. Studies have been done which shows that there are some dynamics, which can reduce the impact of the law to deter the crimes (Protess et al., 2014). The legal deterrence of corporate crime’s hard to achieve primarily by a sophisticated corporation which accounts for a high proportion of the offenses. The legal requirement is just one of the obligations that companies face. However, in the busy market where firms are competitive, and they are focused on the short-term goals of financial achievement. In such context, the legal requirement is not given the priority. In an aim to generate compliance, the legal rules are forced to penetrate the organization structures as well as the culture which restrict the prioritization of the law and ethical behaviors. Most influential groups can negotiate the penalties and reduce the requirements. As observed in the recent series of financial fraud that led to the commercial break down of 2008, some of the corporate powers proved to be too big to fail as well as jail. They were simply above the law. From the evidence that is accumulated it is, therefore, necessary to use the cooperative and coercive approach (Romano and Roberta, 2012.).
To provide a judgment on the effectiveness of the regulatory policies, there is a need for a much more sophisticated research studies that replicate over time. The studies will help determine the kinds of regulatory tool that will work best for any given institution as well as the context of the organizations. In the absence of this sort of research then the world will continue to revolve in the dark without knowing the danger that awaits with the future wave of corporate offenses.
Protess, Ben and Jessica Silver-Greenberg. 2014a. Prosecutors suspect repeat offenses on Wall Street. The New York Times. October 29.
Romano, Roberta. 2012. Regulating in the dark. In (Cary Coglianese, ed.), Regulatory Breakdown: The Crisis of Confidence in U.S. Regulation. Philadelphia: University of Pennsylvania Press
Schell-Busey, Natalie, Sally S. Simpson, Melissa Rorie, and Mariel Alper. 2016. What works? A systematic review of corporate crime deterrence. Criminology & Public Policy, 15: 387–416.
Yeager, Peter Cleary. 2016. The practical challenges of responding to corporate crime. In (Shanna Van Slyke, Michael Benson, and Francis Cullen, eds.), The Oxford Handbook of White-Collar Crime. New York: Oxford University Press.