NCJ Number
65767
Date Published
1980
Length
24 pages
Annotation
FINDINGS FROM FOUR RECENT AUSTRALIAN INVESTIGATIONS INTO COMPANY FRAUD ARE USED TO INTERPRET SOCIAL CONTROL PROBLEMS OF ADVANCED CAPITALIST SOCIETIES, USING THE CONCEPTS OF MARX AND WEBER.
Abstract
THE MATERIAL PRESENTED PROVIDES INSIGHT INTO THE DILEMMAS AND TEMPTATIONS CONFRONTING CONTROLLERS OF LARGE CORPORATIONS IN A SOCIETY WHERE THERE ARE GROWING INCONSISTENCIES BETWEEN THE DOMINANT IDEOLOGY AND ACTUAL RELATIONS OF PRODUCTION. INDICATIONS OF THE WAYS THESE PROBLEMS ARE OFTEN RESOLVED ARE ILLUSTRATED BY CASE STUDIES SHOWING THE EXPLOITATION BY CORPORATE CONTROLLERS OF SEVERAL DISTINCT BUT INTERRELATED STRUCTURES AFFECTING ORGANIZATIONAL ACTIVITIES. IN INTERACTION WITH THE STATE, COMPANY DIRECTORS CAN EXPLOIT AN EMPHASIS ON PREDICTABILITY IN LAW AND ADMINISTRATION BY DEVELOPING PATTERNS OF CIRCUMVENTION LIKELY TO AVOID DETECTION OR PROSECUTION. IN RELATIONS WITH SHAREHOLDERS AND OTHER INVESTORS, A FLEXIBLE SYSTEM OF FINANCIAL REPORTING CAN BE MANIPULATED; AND IN RELATIONSHIPS WITH STAFF, SENIOR COMPANY OFFICERS CAN WIELD AN AUTHORITY THAT ELICITS LOYALTY EVEN IN ILLEGAL ACTIVITY. MARX ARGUES THAT EXPLOITATION OF A SOCIETY'S RESOURCES AND CITIZENRY IS AN INHERENT CHARACTERISTIC OF CAPITALISM AND AN EMPHASIS ON THE ACCUMULATION OF PRIVATE PROPERTY. THE ALTERNATIVE TO CAPITALISM PRESENTED BY MARX, HOWEVER, IS NOT WORKABLE IN AUSTRALIA. WEBER ARGUES FOR THE DEVELOPMENT OF A RATIONAL CAPITALISM WHERE CONTROLS ON CORPORATE BEHAVIOR ARE VIEWED AS ULTIMATELY BENEFICIAL FOR BALANCED SOCIOECONOMIC DEVELOPMENT. A PERCEPTIVE VIEW IS NEEDED OF THE DYNAMICS LEADING TO CORPORATE ABUSES, AS WELL AS THE DEVELOPMENT OF A COMPREHENSIVE PLAN OF EDUCATION AND LEGISLATION THAT CAN COUNTER BOTH THE CONDITIONS AND THE BEHAVIOR TENDING TO FUEL EXPLOITATIVE CORPORATE PRACTICES. NOTES AND REFERENCES ARE PROVIDED. (RCB)