Essay on Criminalization of Corporate Behavior

1388 Words 6 Pages
Crime takes place in all aspects of society. From criminal, to civil, to corporate, there are many different types of crime. Corporate Crime, also known as white-collar crime, is a crime committed while employed with a corporation. It is a collective and organized effort to deceive investors and to serve the economic interests of a corporation, and/or its management, even if unlawful. Whenever employees of a corporation use the corporate assets or infrastructure to commit a crime intended to boost profits, the corporation can be held liable. While it is much more different than a violent crime, criminalizing corporate behavior is necessary. Over the past few decades it seems as though more and more corporate crimes have been exposed, and …show more content…
All of these instances of corporate crime have helped lead to billions of dollars in losses for the companies and shareholders alike.
Historically, Congress has not done enough to prosecute the actions of corporate criminals. A trend usually occurs; first there’s public outcry, then reform implemented by Congress, and then the partial erosion of the reform. For much of the 19th century Congress was said to have a “laissez-faire” attitude regarding corporate crime. Then in 1887, President Cleveland signed one of the first significant pieces of federal legislation to better control corporations, called the Interstate Commerce Act. In 1933, after the Great Depression, President Roosevelt signed into law the Federal Securities Act which was meant to enforce laws attempting to prevent unfair practices by industries. Over the coming decades, public outcries helped lead to the formation of the Environmental Protection Agency and Occupational Safety and Health Administration, yet corporations were still only subject to minuscule penalties for crimes. Studies done in the 80s showed that of, “the 60 some banks convicted of

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