Overview
This lecture covers the sociological explanations for corporate crime, focusing on organizational culture, capitalism, strain theory, punishment, globalization, and delabeling.
Explanations for Corporate Crime
Organizational Culture
- Corporate cultures prioritize profit and competition, increasing risk-taking and unethical behavior among staff and management.
- Those most willing to take risks often gain power, but top management is usually insulated from direct responsibility and consequences.
- Legislation often protects those at the top, reducing accountability.
Role of Capitalism
- Capitalism's competitive environment encourages corporations to use illegal or unethical methods to maximize profits (David Gordon, Marxist view).
- Examples include false accounting, cutting safety corners, and using substandard resources.
- Events like the Grenfell Tower fire illustrate the devastating effects of profit-driven rule violations.
Strain Theory
- Strain theory suggests corporations innovate through illegitimate means to meet profit expectations and shareholder demands.
- Ambiguity in deregulated markets enables law-breaking under the guise of innovation.
- Legal innovations may still cause significant ethical or environmental harm.
Punishment and Regulation
- Corporate crime is under-punished due to reduced health and safety inspections and weak enforcement.
- Financial penalties are low compared to corporate profits, and costs are often passed onto consumers.
- Senior executives rarely face custodial sentences, reducing the deterrent effect.
Globalization and Corporate Crime
- Globalization enables corporations to relocate to countries with weaker laws and oversight.
- Developing countries may tolerate corporate misconduct to gain investment and jobs from transnational corporations (TNCs).
- Major incidents, like the Rana Plaza factory collapse, highlight human and environmental costs.
Delabeling of Corporate Crime
- Corporations use public relations to manage scandals and avoid negative labeling and long-term consequences.
- Unlike individuals, corporations can avoid being stigmatized, making future crime more likely due to lack of deterrence.
Key Terms & Definitions
- Corporate Crime — Illegal or unethical acts committed by businesses or individuals acting on their behalf.
- Organizational Culture — Shared values and practices within a company influencing behavior.
- Capitalism — Economic system based on private ownership and competition for profit.
- Strain Theory — Sociological theory explaining deviance as a response to pressure to achieve societal goals.
- Globalization — Increasing interdependence of world economies through trade, investment, and migration.
- Delabeling — The process by which corporations avoid negative labeling or stigma after wrongdoing.
Action Items / Next Steps
- Review examples like the Grenfell Tower fire and Rana Plaza factory collapse for case studies.
- Prepare notes on each explanation for corporate crime for discussion or exams.