Strat. Mgmt. J.‚ 24: 587–614 (2003) Published online in Wiley InterScience (www.interscience.wiley.com). DOI: 10.1002/smj.330 INCREASING FIRM VALUE THROUGH DETECTION AND PREVENTION OF WHITE-COLLAR CRIME KAREN SCHNATTERLY* Carlson School of Management‚ University of Minnesota‚ Minneapolis‚ Minnesota‚ U.S.A. White-collar crime can cost a company from 1 percent to 6 percent of annual sales‚ yet little is known about the organizational conditions that can reduce this cost. Previous governance research
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constantly coming up with new ideas on how to do so. If done successfully‚ it allows the criminals to maintain control over their “proceeds” and ultimately provide a legitimate cover for their source of income. Money laundering is tied to both white collar crimes as well as violent crimes and it can have a destabilizing effect to the economy. Given the various methods by which the crime can be facilitated‚ as well as the original crimes that bring forth the revenue‚ combating the issue involves
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It seems that with the recent headlines of high profile corporate corruption cases‚ the subject of whether ethics play much of part in modern business has come to the forefront. Connected directly to this would also be the role that communication plays in business ethics. The issues involved revolve around business ethics and how communication is used to either promote or reinforce good business ethics or is manipulated and abused to support more questionable uses. There are some that assert that
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Studies by Sutherland (1949/67‚ cited in Hughes et al‚ 1996 p.244) described the types of crimes the powerful commit as‚ "...violations of law by persons in the upper socio-economic class are‚ for convenience called ’white collar ’ crimes" There are many different kinds of white collar or "corporation" crime‚ ranging from fraud‚ embezzlement‚ insider trading‚ to health and safety‚ environment crime‚ tax evasion‚ and crimes against the consumer. In considering the existence of corporate crimes and
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Introduction Its fall of 2001 and you are an employee for Enron‚ one of the largest energy companies in the world at the time. As an employee you have the option of owning stock in it and you also have a retirement plan with Enron. But what you don’t know is that Enron has been committing accounting fraud for a while now and Enron’s stocks aren’t really worth $90 and that they are soon going to file for bankruptcy. The executives haven’t told you this because if they told you the truth‚ you would
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White-Collar Crime‚ or financial crime‚ is a widespread problem in America that usually does not get the type of attention it deserves. It is perceived as boring and people do not usually care to learn about it. Everyone knows about Blue-Collar crime (Street Crime) and murder‚ rape‚ and theft are usually met with feelings of anger and disgust. But unfortunately‚ White-Collar crime does not stir up the same feelings one would expect to receive from a murder. Fraudulent loans and embezzlement are just
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have to allocate precious resources of their own if they were to prosecute white-collar criminals within the company. Prosecutions can be time and money consuming when comes to investigating the case to hiring lawyers to settle down the matter in court. This might interfere with the daily operations of the company and holds back their efficiency as part of their manpower and resources are used up in litigations of white-collar crimes. In addition to that‚ companies are less likely to prosecute if the
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Offender based approaches to white collar crime is define with emphasis as an essential characteristic of crime dealing with high social status‚ power‚ and respectability of the actor. A strength to this type of approach allows the social stigmatism of the “criminal” offender to be destabilized in the public view. Drawing attention to the ideation that people within high society or social standing can and will commit crime. This approach while breaking the social norms of antisocial behavior lends
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White Collar Crime: Essay 3. Regulatory regimes for white collar crime & corporate crime. The regulatory regimes in place for white-collar crime (WCC) and corporate crime (CC) are much more extensive than those for any other sort of crimes‚ problematically WCC and CC continues to grow. This essay will firstly‚ examine the regulatory regimes in place for the increasing WCC of credit card fraud and secondly how corporations are regulated to prevent CC against the environment through fly-tipping
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Blue- Collar workers are the ones that deserve the most respect in this world. They work so hard to perfect what they actually do. In the short passage Mike Rose expresses his own emotion not only towards his life but he basically broke it down for us piece by piece. He starts off by telling us his experience with being with his mom in the restaurant that she works at when he was a little kid. He learned a lot of things about the restaurant when he was there; most importantly he learned the hardship
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