The main difference between white collar crime and corporate crime is that white collar crimes are usually carried out for personal gain, whereas corporate crimes are carried out for the benefit of the company.
Both white collar crimes and corporate crimes are non-violent crimes that involve financial gain. There is some overlap between white collar crimes and corporate crimes, but we largely consider corporate crimes as a type of white collar crimes.
Key Areas Covered
1. What is a White Collar Crime
– Definition, Features
2. What is a Corporate Crime
– Definition, Features
3. Difference Between White Collar Crime and Corporate Crime
– Comparison of Key Differences
Key Terms
Corporate Crime, Non-Violent Crime, White Collar Crime
What is a White Collar Crime
White-collar crimes are non-violent crimes people commit for financial gain. The FBI (Federal Bureau of Investigation) describes white collar crimes as “characterized by deceit, concealment, or violation of trust.” The main motivation behind such crimes is obtaining or avoid losing money, property, or services or securing a personal or business advantage. Moreover, offences like embezzlement, money laundering, securities fraud, and corporate fraud are examples of white collar crimes.
Although white collar crimes are non-violent, they are not victimless crimes. Such a crime can destroy a company, wipe out a person’s life savings, or cost investors millions of dollars. Their effect can be devasting.
Furthermore, the term white collar crime is believed to be coined in 1939 by the sociologist Edwin Sutherland, who described it as a “crime committed by a person of respectability and high social status in the course of his occupation.” In addition, historically, white collar referred to office and management jobs. These were positions that require wearing a shirt and tie where workers did not have to get their hands dirty.
What is Corporate Crime
A corporate crime is a type of white collar crime individuals commit within their legitimate occupations, for the benefit of their company. It can also refer to crimes committed by a corporation. Here, we consider the corporation to have a separate legal personality from the individuals that manage its activities.
When individuals commit a crime on behalf of their company or for the benefit of their company, they do not usually consider themselves as criminals, nor do they think their activities are criminals. Such common corporate crimes include market manipulation, insider trading, bribery, falsifying financial statements, and making false claims. Regardless of the intention of the perpetrator, such activities are illegal and criminal. Furthermore, sometimes, individuals who commit corporate crimes may not realize that what they are doing is against the law. In most cases, the company employing them would also indirectly approve of the criminal conduct. Moreover, a company proved guilty of a corporate crime may have to pay heavy fines.
Difference Between White Collar Crime and Corporate Crime
Definition
A white collar crime is a non-violent crime an individual commits for financial gain, whereas a corporate crime is a type of white collar crime individuals commit within their legitimate occupations for the benefit of their company.
Intention
The motivation behind white collar crimes is financial gains, typically personal, whereas the motivation behind corporate crimes is the benefit of the company.
Punishment
Moreover, in white collar crimes, individuals are punished; they may face imprisonment, and significant fines, revocation of professional licenses. However, corporate crime charges are usually brought against a company, not individuals. The company may have to pay heavy fines.
Conclusion
A white collar crime is a non-violent crime an individual commits for financial gain, whereas a corporate crime is a type of white collar crime individuals commit within their legitimate occupations, for the benefit of their company. The main difference between white collar crime and corporate crime is that white collar crimes are usually carried out for personal gain, whereas corporate crimes are carried out for the benefit of the company.
Reference:
1. “White-Collar Crime.” FBI, 3 May 2016.
2. “Corporate Crime.” Encyclopædia Britannica, Encyclopædia Britannica, Inc.
Image Courtesy:
1. “Person, handing, banknote, euro, bank notes, handshake, transaction, people, shaking hands, fifty” (CC0) via Pxfuel
2. “Fraud” By Nick Youngson (CC BY-SA 3.0) via Blue Diamond Gallery
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