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Responding to White Collar Crime: Effective Strategies and Ethical Frameworks

Learn effective responses to white-collar crime, including policies, sanctions, and ethical practices. Explore the use of positive and negative sanctions, the rationale behind punishment, and the role of formal and informal methods. Discover how to raise awareness and promote integrity in business ethics.

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Responding to White Collar Crime: Effective Strategies and Ethical Frameworks

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  1. Lecture 15: Responding to the Challenge of White Collar Crime WHITE COLLAR CRIME

  2. Goal • To achieve a more effective response to white collar crime. • How? • Raise consciousness about white collar crime. • Adopt structural, normative, and preventative policies.

  3. Business ethics courses • Ethical committees/ombudsmen • Ethics or compliance officers • Sanctions

  4. Positive Sanctions • Use of pleasant incentives/rewards to make people conform to laws prohibiting white collar offenses. • E.g., grants, tax credits, favorable administrative consideration.

  5. Negative Sanctions • Actions that discourage the repetition or continuation of behavior. Can range from mild to severe, formal to informal. • E.g., imprisonment, fines, adverse publicity; stigma.

  6. Four justifications for punishment: • Retribution: punishment should be comparable in severity to the deviance itself. • Deterrence: requires that the pains of punishment outweigh the pleasures of deviance.

  7. Rehabilitation: views deviance as the product of social problems (e.g., poverty) or personal problems (e.g., mental illness); social offenders are improved and offenders subjected to intervention appropriate to their condition. • Social Protection: believes that if society is unwilling or unable to improve offenders or reform social conditions, protection from further deviance is necessary by incarceration or execution.

  8. Formal Sanctions • Formal sanctions are applied in a public setting. E.g., awarding a prize (positive), announcing a fine (negative).

  9. Informal Sanctions • Actions by groups/individuals that arise spontaneously with little or no formal direction. E.g., smiles, handshakes (positive); frowns, gossip, impolite treatment (negative).

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