NCJ Number
54067
Journal
SAM ADVANCED MANAGEMENT JOURNAL Volume: 43 Issue: 2 Dated: (1978) Pages: 17-23
Date Published
1978
Length
7 pages
Annotation
THE BUSINESS PRACTICE OF ALLOWING WHITE-COLLAR CRIMINALS TO AVOID PROSECUTION BY RESIGNING FROM THEIR JOBS IS DISCUSSED, AND AN APPROACH TO REFORMING, BUT NOT ELIMINATING, THE PRACTICE IS SUGGESTED.
Abstract
THE FAILURE OF THE CRIMINAL JUSTICE SYSTEM TO PROVIDE CONFIDENTIAL, EFFICIENT PROSECUTION OF CRIMES AGAINST BUSINESSES HAS LED TO THE DEVELOPMENT OF A SECOND CRIMINAL JUSTICE SYSTEM, WHICH ALLOWS WHITE-COLLAR THIEVES TO RESIGN SO THAT THE CORPORATION'S REPUTATION AND ASSETS WILL BE PROTECTED. THE REAL THREAT OF THE SECOND SYSTEM LIES IN ITS LACK OF ACCOUNTABILITY. THE JUDICIARY SHOULD FORMALLY RECOGNIZE THE SECOND SYSTEM AND PROVIDE FOR JUDICIAL REVIEW OF ITS ACTIONS. CORPORATIONS SHOULD BE ABLE TO REPORT LOST ASSETS AND TO PURSUE THEIR RECOVERY IN CONFIDENCE. JUDICIAL RECOGNITION WOULD PROVIDE FOR A NEGOTIATED SETTLEMENT BETWEEN CORPORATE VICTIMS AND THE PERPETRATORS OF BUSINESS PROPERTY CRIMES. EVIDENTIARY PROOF REQUIREMENTS WOULD BE LESS DEMANDING THAN IN ORDINARY SITUATIONS, BUT THE PERPETRATOR WOULD BE REQUIRED TO ACKNOWLEDGE RESPONSIBILITY. IF THE PERPETRATOR AND CORPORATION FAIL TO REACH AN AGREEMENT, THE JUDICIARY WOULD APPOINT AN ARBITRATOR. THE CORPORATION'S INSURANCE CARRIER WOULD ALSO PARTICIPATE IN THE NEGOTIATION/ARBITRATION PROCESS, AND ALL PARTIES WOULD RETAIN THE RIGHT TO RESOLVE THE MATTER IN THE COURTS. AMONG THE BENEFITS OF SUCH AN APPROACH WOULD BE A MORE ACCURATE PICTURE OF THE EXTENT AND NATURE OF BUSINESS CRIME. IN ADDITION, CORPORATIONS WOULD BE LESS LIKELY SIMPLY TO PASS ON TO THE CONSUMER THEIR COSTS IN LOST ASSETS. A HYPOTHETICAL CASE STUDY ILLUSTRATING HOW THE SECOND CRIMINAL JUSTICE SYSTEM WORKS IS INCLUDED. (LKM)