White-Collar crimes can be defined and is refer to as the unethical business practices committed by people in the course of their work lives. In recent years, around a decade ago one of the biggest multinational companies, “Enron” served as a synonym to white-collar crime and a formal definition of deviant behavior. The companies executives practiced false accounting; falsifying profit while inflating the value of Enron, by 2001 the company filed bankruptcy.
Enron found a loop hole in society to avoid disciplinary actions, know also as punitive measures. One of the most important factors to the success of the fraudulent action that had taken place for many years was the close relation with elected officials, as well as President George W. …show more content…
Enron first gained exponential power and was able to take advantage over its political power when they were authorized to provide much of California’s energy. To simplify the scenario; Californians were paying $30 per megawatt in the year 1998, as the years gradually increased Enron began charging upwards to $120 per megawatt forcing other utility companies to file bankruptcy. We can relate this to the prior paragraph and it correlates perfectly as to why punitive action had not taken place.
Between white-collar crimes and the fraud of Enron, it is considered to be so extreme prison time was served. Given the amount of hardship caused by Enron, there is said to be a shortcoming of white-collar justice due to only three people facing prison time for the impact they caused on the community. The act of fraud committed, positions itself in the category of formal deviance. Formal deviance is defined as robbery, theft, rape, murder, and assault. However, the action that had taken place by the 20,000 employees may have been due to the power of the executives, physically and mentally forcing deviant behavior.
In conclusion, there were several factors to the success and downfall of the Enron scandal. However, many of the factors that created success work hand in hand as well as the downfall; somewhat like a domino
Enron found a loop hole in society to avoid disciplinary actions, know also as punitive measures. One of the most important factors to the success of the fraudulent action that had taken place for many years was the close relation with elected officials, as well as President George W. …show more content…
Enron first gained exponential power and was able to take advantage over its political power when they were authorized to provide much of California’s energy. To simplify the scenario; Californians were paying $30 per megawatt in the year 1998, as the years gradually increased Enron began charging upwards to $120 per megawatt forcing other utility companies to file bankruptcy. We can relate this to the prior paragraph and it correlates perfectly as to why punitive action had not taken place.
Between white-collar crimes and the fraud of Enron, it is considered to be so extreme prison time was served. Given the amount of hardship caused by Enron, there is said to be a shortcoming of white-collar justice due to only three people facing prison time for the impact they caused on the community. The act of fraud committed, positions itself in the category of formal deviance. Formal deviance is defined as robbery, theft, rape, murder, and assault. However, the action that had taken place by the 20,000 employees may have been due to the power of the executives, physically and mentally forcing deviant behavior.
In conclusion, there were several factors to the success and downfall of the Enron scandal. However, many of the factors that created success work hand in hand as well as the downfall; somewhat like a domino