The world has become a dangerous place to live. Nowadays, none of the places people go can be declared 100% safe because of the crimes and injustices committed by individuals or groups against the innocent. People commit crimes for various reasons, such as grudges, revenge, benefits, fun, or simply because they are psychopaths. However, crimes can range from trivial to heinous crimes. Two such types of crimes are white-collar crime and corporate crime.
White Collar Crime vs Corporate Crime
The main difference between white-collar crime and corporate crime is that white-collar crimes are committed to satisfying a person’s desires in the form of financial benefits. On the other hand, corporate crimes are committed so that a group of people, in the form of firms or companies, can derive benefit from them. An individual who indulges in a white-collar crime has to face the repercussions of being caught on their own, whereas a corporate crime will be committed by a person working in the company. Repercussions have to be faced by the business or agency.
White-collar crimes are crimes that are free from any brutality or heinous acts and do not involve threats. It is usually by the conduct of misuse of authority or trust. People commencing White Collar Crime are often individuals that commit it on the drive of getting financial benefits.
Corporate crime is another sort of non-violent and threat-free crime conducted by a group of people for the sake of their company. Corporate crime is often called organizational crime. Employees commencing such crimes do not hold themselves as fraud nor think of their actions as poor.
Comparison Table Between White Collar Crime and Corporate Crime
What is White Collar Crime?
“White collar crimes” are crimes that do not include threats and are free from any brutality. It is frequently accomplished through the abuse of power or trust. White-collar crime is often started by people who are looking for financial gain. The five most common forms of white-collar crime committed are
- Corporate Fraud
- Bankruptcy fraud
- Extortion
- Ponzi Schemes
- Embezzlement
Although white-collar crimes are violence and threat-free, they often put the lives of employees in danger in the form of poor working conditions and consumers in danger in the form of low-graded quality substances, thus causing various problems for society. Researchers have said that white-collar crimes cause more impact on the economy in terms of losses in comparison to other crimes.
“White-collar crime” was first brought into existence in the early 20th century by Edwin Sutherland. He was a sociologist and a criminologist. He used the phrase to describe crimes that were commonly committed by people holding high dignity in society.
What is Corporate Crime?
Another sort of non-violent and threat-free crime is a corporate crime, which is committed by a group of people for the profit of their company. Organizational crime is another term for corporate criminality. Employees who commit such crimes do not regard themselves as fraudsters or criminals, nor do they consider their actions wrong.
Corporate crime is a narrower concept than falls under white-collar crime. Although it is often a person within the company committing a white-collar crime, the person does not receive the penalty or face punishment. Instead, it is the company that faces the repercussions and has to pay a huge sum of money as penalty money. The company may be asked to change its rules and regulations so that they do not violate the law.
Corporate criminals are often created because of the opportunities available to them in the normal legitimate functioning of the organization that they work. Some common types of corporate crimes are as follows:
- Corruption
- Cheating on employees
- Fraudulence on customer and vendor
- Scams related to investment
Main Differences Between White Collar Crime and Corporate Crime
- White-collar crimes are a type of crime that is usually commenced by individuals, while corporate crimes are conducted by a group of people.
- White-collar crimes are often conducted by individuals for their benefit, while corporate crimes are conducted by groups of people for the benefit of their organization.
- In white-collar crime, if caught, the penalty is faced by the individual. However, in corporate crime, even though a particular person may be committing the crime, the penalty is faced by the company.
- As a result of committing a white-collar crime, an individual may be sentenced to prison for a few years, fined, or have their license canceled. While in corporate crime, the company may face a heavy fine and be asked to change its rules and policies.
- “White-collar crime” is a comprehensive and extensive concept in comparison to corporate crime. While corporate crime is a narrower concept.
Conclusion
White-collar crime and corporate crime are both threat-free crimes that may play with the trust of people. However, they are free from any brutality or heinous acts. “White-collar crime” is a wider concept that includes corporate crime. White-collar crimes are often commenced by a single person for their financial benefit, while corporate crimes are committed by groups for the collective benefit of the workplace that they work for.
References
- https://books.google.com/books?hl=en&lr=&id=HHsWm1xYvEEC&oi=fnd&pg=PA78&dq=White+Collar+Crime+and+Corporate+Crime&ots=5q16Eybaxo&sig=EAymkXCMWFmhvmEniA6_LfsZjOQ
- https://link.springer.com/content/pdf/10.1007/978-0-387-34111-8.pdf