Lesson 11 (Chapter 14 from text) Privileged Deviance

Introduction Can be divided into: –White-collar, or corporate & occupational, and governmental Example: the head of Tyco Corporation stole $150 million © 2013, 2010, 2007 Pearson Education, Inc. All rights reserved.

What is White-Collar Deviance? Sutherland: crime committed by –"the upper, white-collar class Which is composed of respectable, or at least respected, business and professional men." Also includes corporations participating in deviant activities

Corporate Deviance Takes place in corporations; –It is carried out for benefit of the company or an individual

Corporate Deviance The FOUR major types of deviance include: –Deviance against employees –Deviance against customers –Deviance against the Government –Deviance against the environment © 2013, 2010, 2007 Pearson Education, Inc. All rights reserved.

A Social Profile of Corporate Crooks In 2002 alone Corporate crooks were responsible for: –Devaluing their companies by $530 billion and costing 162,000 jobs –Most famous: Kenneth Lay of Enron; Top executives at Arthur Anderson; founder of Adelphia © 2013, 2010, 2007 Pearson Education, Inc. All rights reserved.

A Social Profile of Corporate Crooks Typical illegal practices: –moving corporate headquarters to avoid taxes –overpaying executives –stacking the Board of Directors –giving money to candidates of both parties to ensure government favor and tax breaks © 2013, 2010, 2007 Pearson Education, Inc. All rights reserved.

Occupational Deviance White-collar crime committed by employees for individual gain is: –Usually less costly than that committed by corporations But still far more costly than street crimes © 2013, 2010, 2007 Pearson Education, Inc. All rights reserved.

Occupational Deviance It is estimated that as many as: –60% of American employees may steal from their employers if the opportunity is presented Embezzlement: stealing of money; costs as much as $27.2 billion in one year –Commercial banks lose five times as much to embezzlers as armed robbers © 2013, 2010, 2007 Pearson Education, Inc. All rights reserved.

Occupational Deviance Financial frauds are very prevalent –tax evasion –securities fraud © 2013, 2010, 2007 Pearson Education, Inc. All rights reserved.

Occupational Deviance Deviance in the professions –Those acts committed during the course of the individual's occupation –medical misconduct – Fee splitting is the practice of sharing fees with professional colleagues, such as physicians or lawyers, in return for being sent referrals, unnecessary surgery and fraudulent payment claims © 2013, 2010, 2007 Pearson Education, Inc. All rights reserved.

–lawyerly lawlessness – overcharging, and intentionally causing delays in court –accounting abuses – assisting clients in falsifying deductions during audits © 2013 Pearson Education, Inc. All rights reserved.

What Makes White-Collar Deviance Unique? Use of power, influence, or respectability to minimize detection Rational execution to maximize profits Non-criminal self-image Victim's unwitting cooperation Society is relatively indifferent © 2013, 2010, 2007 Pearson Education, Inc. All rights reserved.

Causes of White-Collar Deviance Three reason why some people are more likely than other to be deviant: ① Stronger criminal motivation (greed is stronger than fear) ② Great criminal opportunity ③ Weaker social control (lax law enforcement) © 2013, 2010, 2007 Pearson Education, Inc. All rights reserved.

Governmental Deviance Many public officials abuse their power in a variety of ways Official deviance: –Abuse of power by governmental officials or politicians running for office © 2013, 2010, 2007 Pearson Education, Inc. All rights reserved.

Governmental Deviance Political corruption: abuse of power for personal gain Election improprieties include the illegal or unethical means used to win elections Official violence against citizens has a long history © 2013, 2010, 2007 Pearson Education, Inc. All rights reserved.

Global Perspective: Official Corruption Official corruption is very common around the world –And especially in poorer countries, where corruption of public officials is seen as normal Causes of official corruption: –Poverty, large populations, lack of democracy © 2013, 2010, 2007 Pearson Education, Inc. All rights reserved.

Official Ways of Neutralizing Deviance Official deviants practice “the ritual of wiggle” Continually deny wrongdoing has occurred Ignore the deviance Accusing the accuser Promising an investigation Claim the action was necessary © 2013, 2010, 2007 Pearson Education, Inc. All rights reserved.

Causes of Governmental Deviance Abundance of ambiguous laws Complex nature of the government; lack of information and responsibility –Greater complexity leads to greater confusion Diminished awareness that deviance is being committed © 2013, 2010, 2007 Pearson Education, Inc. All rights reserved.