White Collar Crime
In organizational behavioral theory, it is clear that in the Enron scandal, one can understand the elements that encourage white collar crime. Organizational crime has three categories, (1) organizational goals (2) organizational environment (3) and organizational structure (Weisburd, D. 1992) Clearly in Enron scandal, opportunity theory will argue that traders who had a hard time meeting its numbers will had a greater chance of utilizing illegal means to meet its goal. (P.65) I thought that the performance review system, put a lot of pressure on the traders to produce cash and profit therefore, forced them to engage in illegal business transactions. Perry (1972) and Kramer (1982), stated clearly that large corporation ‘provide specific objectives that will most directly influence criminal behavior.” (Weisburd, P.65) For example, the performance review system, aim at aligning individual and corporate goals, exacerbated the competitiveness as employees used several tactics to manipulate cash and “keep making profits. The consequences of this led to traders to push through over-valued deals. Sometimes they changed the prize projections at the last minutes in order to favor their short term trades at the expense of originator’s long term contracts.
I like to use differential opportunity theory in this framework to further support my view in organizational behavior. Differential opportunity theory here builds upon strain and anomie theory. In the Enron scandal, it pertains to strain theory on a micro variable point of view from lack of cash production or profit in meeting its goals.. My interpretation is that for traders to meet their objectives and produce profits, they are more than likely to engage in illegal behavior. This puts a lot of pressure to meet standard performance.
In organizational environments, lack of law enforcement will not deter unlawful corporate behavior, although external controls maybe in place. (Dr. LeClair, week 2 study guide, P. 11)
I like to use differential opportunity theory in this framework to further support my view in organizational behavior. Differential opportunity theory here builds upon strain and anomie theory. In the Enron scandal, it pertains to strain theory on a micro variable point of view from lack of cash production or profit in meeting its goals.. My interpretation is that for traders to meet their objectives and produce profits, they are more than likely to engage in illegal behavior. This puts a lot of pressure to meet standard performance.
In organizational environments, lack of law enforcement will not deter unlawful corporate behavior, although external controls maybe in place. (Dr. LeClair, week 2 study guide, P. 11)
References: Friedrichs, D. (2010) Trusted Criminals, White Collar crimes (4th ed.) Wadsworth, Cengage Learning Weisburd, D. Schlegel, K. (1992) White Collar crime Reconsidered, North Western University Press, Boston Dr. LeClair (week2, study guide, September 10, 2013) CJ 632 White Collar crime Enron the smartest guys in the room, (2005) Magnolia home entainment