SOC1210 Corporate Deviance

Elite Deviance

An individual with relatively high social status doing deviant behavior activities during the course of one’s occupation

VW Emissions Scandal

Volkwagen vehicles used devices to cheat on emissions tests; wanted to appear more environmentally friendly than they were

External economic factors that explain corporate deviance

Market pressures; practices and traditions of industry; goals and industry norms; car production and sales

Internal cultural factors that explain corporate deviance

Goals and norms of companies; aspirations and management of execs; training and learning within corporation; e.g committing widespread fraud

Why do employees break the law?

Initiation period to weaken ties to other groups and strengthen loyalty; financial and social sanctions; emphasize conformity and role; process of normalizing deviant behaviors

Rationalizations for deviance

Necessary for competition and results; good intentions for company; nobody was harmed; corporation and customers benefited

Defense against government regulations

negatively distorts the market; too high costs affect profits; to complex and incomprehensible; unnecessary since issues not important

Types of white collar crimes

• Health care fraud

• Corporate fraud

• Money laundering

• Financial fraud

• Mortgage fraud

Trends in federal enforcement of white collar crimes

Highest under Obama administration; lowest under Biden administration; overall limited prosecution of limited entities

Most Federal Crimes Procescuted

Narcotics/drugs and immigration

Ponzi Scheme

Investors use false investment opportunities to receive from victims within promise of higher than usual returns over time; scheme is maintained by paying false returns not from real investments

Ponzi Scheme External Factors

Profit and wealth; lack of regulation; individual status tied to wealth; positive coverage of elites

Ponzi Scheme Internal Factors

Greed for high returns; trust in elite investors; lack of oversight

Ponzi Scheme Neutralization

Trust in investors to create wealth; not questioned; not harmful

Restaurant Harassment External Factors

Profit and wealth; lack of regulation; celebrity chefs

Restaurant Harassment Internal Factors

Restaurants viewed as intense; genius asshole stereotypes; sexualized comments normalized

Restaurant Harassment Neutralization

Chefs under financial pressure; male chefs are eccentric; blurred distinction between acceptable and harmful behavior