White-collar Crime: The Major Aspects of Corporate and Occupational Crime Laws 

Introduction

'White-collar crime gets more outrageous by the second in America,' quoted by Sara Paretsky. For readers unfamiliar with the term 'white-collar crime,' it refers to financially motivated, nonviolent crimes committed by businesses and government professionals. In 1939, sociologist Edwin Sutherland defined it as 'a crime committed by a person of high social status and respectability in the course of their occupation.' In this essay, we will discuss two major types of white-collar crime: corporate and occupational crimes. You might wonder, 'What's the difference? Aren't these two the same?' I shared the same thought until I researched these crimes separately, not just white-collar crime as a whole. To begin this essay, we will start by defining and providing examples of corporate crimes.

Corporate crime

Corporate crime, also known as organizational crime, refers to a type of white-collar crime committed by individuals within their legitimate occupations for the benefit of their employing organizations. However, such individuals generally do not perceive themselves as criminals, nor do they consider their activities criminal. For instance, imagine a member of a major law firm defrauds a client by overbilling them an extra $200,000 for legal services beyond what the client actually owes. Suppose this illegal act occurs without the knowledge or consent of anyone else in the firm. The criminal liability of the deceptive lawyer in this example is evident; they are guilty of fraud and face disbarment and criminal prosecution. But what about the law firm? Would the outcome be different if the law firm were a corporation? The answer is yes, due to the prevailing notion that corporations can face criminal prosecution for the criminal acts of their agents. Many courts have ruled that even if a corporate employee acts independently and against corporate policy, the corporation can still be held criminally liable, provided the employee's actions fall within the scope of their employment. We will proceed with this essay by delving into the other major white-collar crime: occupational crime.

Occupational crime 

Occupational crime involves the misuse of structural systems in the workplace to commit white-collar crimes. It often entails access by employees, managers, and other workers seeking personal gain. In some instances, these crimes are the result of collaborative efforts involving multiple individuals, rather than being perpetrated by a lone individual. Occupational crime may also encompass industry-specific violations, such as toxic dumping or other environmental infractions. Certain industries are subject to greater regulatory oversight than others. Scholars Clinard and Quinney introduce the term 'occupational property crime' to describe offenses such as embezzlement, fraudulent sales, false advertising, violations of labor laws, and antitrust violations. Instead of being handled through criminal proceedings, offenses under occupational law are typically addressed through civil law or administrative regulations. Moreover, such offenses tend to be tolerated by the perpetrator's colleagues and even the general public, who may be aware of the wrongdoing. Occupational offenses often fall under tort law rather than criminal law. The determination of whether a matter proceeds as a civil or criminal case is influenced by how victims, legal authorities, and interested third parties perceive the circumstances. Next we will explore the similarities between the two types of crimes.

Typical white-collar crimes encompass wage theft, fraud, bribery, Ponzi schemes, insider trading, labor racketeering, embezzlement, cybercrime, copyright infringement, money laundering, identity theft, and forgery. Lawyers can specialize in white-collar crime. However, these crimes are classified into two groups: corporate and occupational crime. Corporate crime pertains to situations where corporate officials commit criminal or harmful acts to benefit the corporation, while occupational crime involves individual employees committing crimes against the corporation, workplace, or consumers for personal gain during the course of employment. This might sound similar to corporate crime, but the key distinction is that the perpetrator is a worker without significant status within the corporation. In essence, the nature of the perpetrator distinguishes the two, although they share many similarities.

Conclusion

In conclusion, corporate crime, also known as organizational crime, involves white-collar crimes committed by individuals within their legitimate occupations for the benefit of their employing organizations. On the other hand, occupational crime often involves access by employees, managers, and other workers seeking personal gain, and in some cases, these crimes result from collective efforts. Despite their similarities, the differing social status or level of involvement in the corporation sets these two types of crimes apart.

References

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5. Clinard, M. B., & Yeager, P. C. (1980). Corporate Crime. Free Press.
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