The situation cries out for understanding what was going on in the minds of the executives who allowed the situation to develop and continue. Another writer states, "How could these two companies have communicated with one another so poorly? If you have an alliance and the product which it produces is defective, how are blame and liability apportioned? Who should take responsibility? How do alliance partners hedge against the possibility that one may damage the other's brand? (Garten, 2000, p
They also gained terrible reputations with their customers. Another writer, speaking of the aftermath writes, "They demonstrate all too clearly the need for consumer watchdogs and for strong, vigilant oversight of the marketplace" (Guest, 2002)
As testimony continued, it became apparent that Ford and Firestone knew about the problem with the tires long before they publicly acknowledged it. A reporter notes, "Bridgestone/Firestone was tracking problems with its Firestone ATX tires as long ago as 1994, documents show, and a recently retired Bridgestone/Firestone official swears in a lawsuit deposition that top executives, including the CEO, were discussing the matter at quarterly meetings, at least since 1997" (Healey, 2000)
The National Highway Traffic Safety Administration (NHTSA) played a role, as well. The companies did not notify the NHTSA of their tire recalls in other countries, but the NHTSA had antiquated tire regulations that pre-dated the bias-ply tires that Firestone produced, and NHTSA had received complaints about the tires but had mishandled them and failed to address them (Mashaw, 2003)
Hundreds of people were killed and injured as a result of the tire separating and resulting crashes. Two journalists note, "The maelstrom of controversy over alleged defective tires for SUVs and trucks produced by Firestone during the summer and fall of 2000 illustrates an amazing blunder that resulted from a failure to identify problem signals" (Murnighan & Mowen, 2002, p
White Collar Crime is reported to be a term that Edwin Southerland, Sociologist of Criminology defined and one that identifies "those illegal non-violent activities that involve traditional notions of deceit, deception, concealment, manipulation, breach of trust or illegal circumvention." (Soto, 2008, p
Telemarketing fraud is reported to be such that has the elderly as its target and this is a problem since the elderly are "one of the most vulnerable segments in our society." (Kouri, 2005, p
1) This story is reported to be "one among hundreds recounting the financial losses suffered by individuals and organizations due to fraud by trusted business advisors and professionals." (Price and Norris, 2009, p
" Of the many types of the activity, the most prevalent forms of white collar crime include fraud (computer, internet, credit cards, forgeries, bankruptcy fraud, tax evasion, securities fraud, mail fraud, bribery, counterfeiting, trade secret theft and insider trading to name a few. Further, not only are these crimes serious in the extreme, but the legal system can prosecute them as such (although some argue that white collar crime is prosecuted far less stringently than blue collar crimes -- possibly due to social and racial inequality (Hurst, 2003)), leveling "fines, home detention, community confinement, costs of prosecution, forfeitures, restitution, supervised release, and imprisonment," for those found guilty of offences (LII, 2004)
Not only are billions of dollars illegally gained (and lost) to the activities associated with the concept, but entire lives are often destroyed in the process. "White-collar crime" as a concept was coined in a 1939 speech presented by Edwin Sutherland at the American Sociological Society (LII, 2004)
Securities and Exchange Commission with using insider information gleaned by a personal friend (Sam Waksal), whose company was due to see a drastic drop in stock value. Because Martha owned stock in this company, and quickly sold 4000 shares as a result in an attempt to avoid a catastrophic loss, she was suspected (and later found guilty) of insider trading (Rasmussen, 2004)
. when a person trades a stock while in possession of material non-public information in violation of a duty to withhold that information or refrain from trading (Valenti, 2004)" -- or, as the article simplifies it, "In other words, if you have information that the public doesn't know about or you got such information from an inside source, it is illegal to trade on that information
The faceless and bureaucratic nature of modern society can make many employees feel justified in engaging in fraud (such as occurred in the mortgage industry) or deceiving shareholders with inaccurate financial statements to appear more profitable. A growing acceptance for unethical behavior to remain profitable in a competitive environment continues to drive fraud: according to [PricewaterhouseCoopers] PwC, most internal frauds are now perpetrated by middle management, with 54% of internal frauds committed by middle management, compared to 45% in 2011" (Cohn 1)
S. are governed by the general principles of criminal law (Braithwaite, 2010)
A white collar crime is an illegal and unethical act that violates public trust (Friedrichs, 2010). Common examples include misrepresentation, stealing, misappropriation, self-dealing, and corruption (Echols & Richardson, 2011)
White Collar Crime Theories, Laws and Processes Explain white collar crime in terms of various theories related to criminology and crime. A white collar crime is an illegal and unethical act that violates public trust (Friedrichs, 2010)
Most are crimes of opportunity and hold similar characteristics to corporate crime -- fraud, insider trading and other illegal acts of a financial nature. A "white collar" prosecutor or defense attorney, for example, would most likely define "white collar crime" as crime that does not necessarily involve force against a person or property; involve narcotics; relate to organized crime activities; relate to such national policies as immigration, civil rights, and national security; or involve "vice crimes" or the common theft of property (Minkes, 2010)
There are several basic theories in which white collar crime can be explained relating to criminology and crime. There are the sociological, biogenetic, and psychological explanations to white collar criminology and crime (Morley & Hall, 2003)
UNIT 5 DISCUSSION Consumer fraud encompasses a wide range of practices that impact and victimize consumers. The most common types of consumer fraud include identity theft, debt collection, and payday loans ("Identity Theft, Debt Collection, and Payday Loans Top List of Consumer Fraud Complaints," 2014)
The changes in technology and online presence of shopping, trading, and e-commerce activity is also prone to fraud and numerous other crimes. The online identities are used in several ways by criminals to unlawfully damage the financial, business, and trade position of individuals and corporations (Friedrichs, 2009)