Corporate Crime

Sample Solution

  Corporate crime has been a prominent topic of discussion in recent years, with many arguing that the perpetrators of these crimes are not held accountable for their actions. A better understanding of corporate crime can be gained by examining its various sources.

One source is the financial industry, where company executives may engage in fraud and other unethical practices to increase profits or mislead investors. This type of behavior is often referred to as “white-collar” crime, and it most commonly involves insider trading, accounting fraud, bribery, and embezzlement (Healy & Palepu 2003). It is important to note that even though white-collar crimes do not involve physical violence or property damage like traditional criminal activities, they still have serious economic consequences (Dutta & Mukherjee 2013). Another source of corporate crime can be found in environmental violations such as dumping hazardous waste materials or failing to comply with safety regulations (Miller 2020). These types of offenses put people at risk for health complications due to exposure to toxic substances or unsafe working conditions. Additionally, corporations have been known to exploit vulnerable communities through practices such as price gouging and unfair labor practices (Smith et al 2020). Tax evasion is another form of corporate misconduct that damages both public finances and the economy as a whole. Companies often seek out loopholes in tax laws so they can legally avoid paying taxes while exploiting workers and distorting competition between businesses (Bebchuck & Meckling 2002). Furthermore, some companies use aggressive accounting tactics such as shifting profits into offshore accounts which allows them to reduce their overall tax liability (DeFond & Subramanyam 2011). Finally, there are cases when corporations commit criminal acts inadvertently due to negligence or carelessness on behalf of managers or employees who fail to take adequate steps towards compliance with legal requirements (Schiltz 2016). This lackadaisical approach increases the likelihood that a company will encounter serious regulatory problems later on down the line. In conclusion, there are numerous sources from which corporate crimes stem from including financial manipulations like white collar crimes; environmental violations; exploitation ;tax avoidance; and negligent behaviour. It is important for governments and policy makers alike understand these underlying causes if they hope mitigate this problem within society.