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Sociology 3357F/G

Lecture Notes: Sept. 10  2013 th 09/10/2013 Introduction Lecture: TA’s Email: [email protected] ; available by apt. - Your more likely to be affected by white collar crime then common crime - your don’t have one on one harm where your being attacked by another person… no immediate affect - Public generally has no clue what we are talking about when we use the term white collar crime - People get the majority of their information about crime from the media and the media portrays crime inaccurately, it is problematic because it focuses on violent crime - Motivation for media to portray crime this way is to instill fear in an attempt to control our actions, people are willing to forgo rights to be safe. What do all white collar crimes have in Common? - Personal monetary gain or occupation advancement at someone else’s expense - People committing crimes are highly trusted by society - Situations are not the focus of law or the criminal justice system, resources and attention not focused on these Edwin H. Sutherland - Given credit for the introduction of white collar crime in literature - Known for differential association, says crime like everything else we know is a learning experience … crime is learned like manners are learned. - he was the first to identify crimes of highly respected people - his idea stemmed from Ross who identifies the criminaloid… business people who cheated others for personal gain - Ross argued these people are more problematic because they hide behind a mask of trust, no one will look into these people because they assume they are legitimate - Regarded these people as being guilty of a lack of moral responsibility used their success to exploit others - Sutherland gives ASAa speech saying white collar crime is problematic which raised a lot of red flags - Crime of the upper or white collar class composed of respectable or at least respected business and professionals men (Sutherlands definition) - Anumber of terms are used to describe white collar crime, don’t need to know all of them. Criminologist agree on three main things a. Occurs in a legitimate environment to exploit others b. Motivated by the same objective, economic gain or occupational status c. Not characterized by direct intentional violence. - Author of book and others came up with working definition “White collar crimes are illegal or unethical acts that violate fiduciary responsibility of public trust committed by an individual or organization, usually during the course of legitimate occupational activity, by persons of high or respectable social status for personal or organizational gain” Three Stages on Defining white collar crime : A. Polemical, argument for trying to establish some sort of truth, challenging the truth of the traditional criminal. Trying to find out the truth of what crime is and in order to do that we must acknowledge white collar crime B. Typological, we want to organize types and patters of criminal behavior into different categories C. Operational, where we try to move from having this working definition to actually researching it. Moving beyond definition and carrying out a research project. Difficult to carry out research in this area. Types of White Collar Crime: A. Corporate Crime: -Entire corporation doing something wrong - In Canada you cannot take a corporation to civil or criminal court, this is different in the united states … the corporation has personhood - This is problematic because there is no one person who is responsible and therefore no one can go to jail. B. Occupational Crime: - Stealing a shirt from where you work, use occupation to carry out some sort of crime… stealing from employer C. Government Crime: - Using tax payer money to go on vacation or for personal use D. State corporate crime or crimes of globalization - crimes where state and corporation are working criminally together E. Finance Crime: - Tax evasion, insider trading (When you know something is going to happen with a stock from an insider so you either buy more dump it) F. Enterprise Crime: - Alot of the gray area or what is left over and not covered by the above Risk and White Collar Crime: Jeremy Bentham- Hedonistic calculus, where humans will always try to maximize pleasure while minimizing pain Risk: is a wager or the probability of an event from occurring; we will always try to minimize risk - Risk applies to white collar crime because white collar criminals will always calculate is the risk is worth the reward and in many cases it is because not many times white collar criminals are not commonly punished - Some companies will calculate if they will benefit more from recalling something bad or is it cheaper to just pay the fines we will be charged with Difference between an accident and criminal negligence: Accident: Amistake, something that wasn’t supposed to happen, no ones fault, unpreventable Criminal negligence: You know your actions could potentially lead to something bad happening, some knowledge that something bad could or is likely to happen but nothing is done to stop it. Street crime versus white collar crime: Age: White collar = middle aged and Older Street= 15-24 Class: White Collar= Higher Class Street= Lower Class Race: White Collar= White, Caucasian Street= Visible minorities Gender: White collar= male Street= male Why do White collar criminals receive lighter sentences then street criminals? - So much power - Can Higher themselves lawyers - More likely to have advantage in the process, jury can usually identify with white collar criminals - Power both financially and with regard to status and use it to their advantage Why are men the bad guys in both categories? - Don’t hold positions men do - Generally men who are afforded opportunities because its so rare they don’t ant to screw it up, women take less risks Social Movement against white collar crime: - Occupy movement, 99% of pop making 1% of income and 1% making 99% of income, but this just disappeared, died out because the media stopped covering it, people became less aware… if its not driven by public support it ceases to exist - If it bleeds it leads, it there’s blood the media will portray it Exposing White collar Crime: - less visible, we know less about it, we know we don’t waste money investigating unless there is a lot of money at stake Informer Versus Whistleblower Informer: Someone who provides criminal justice system with information that can lead to an arrest or conviction but provide information for some sort of payment or reduction in sentence… This is problematic for investigating white collar crime because the informant is taking a risk but it is also essentially bribery. Whistleblower: Someone who is not part of the crime, not actively involved like an informant. Some consequences that could exist are a breach of confidentially agreement. Muckrakers: - Investigative journalists, whistleblowers - Try to infiltrate into different networks that are constantly carrying out white collar crime - This has recently fallen out of popularity Political Role in white Collar Crime: - Alot of corruption that exists - well aware that things are illegal and unethical in corps and they turn a blind eye - They get their money from these corporations Sept. 17  2013  09/10/2013 WCC and Methodology: Introduction: There are three theoretical perspectives: A. Metaphysical- How the world is, wants to describe the world and the reality of the world B. Ontological – Sub component of metaphysics, the overall nature of things, the types of things that actually exist. C. Epistemological- Knowledge and how we know things, how d we develop a knowledge base to help us understand something. What do we want to explain? A. we want to explain criminality, what makes someone or an organization actually commit a crime ? B. we must explain the crime or the event itself. What socially has allowed for this event to happen, what led up to this event. C. Criminalization must be explained first. Why is it that some activities are labeled as criminal and some are not. Another issue with explanation is what is the level we are looking at: A. Macro level – the broader sense, what conditions in society allow for criminality B. Micro Level – why the individuals chose to engage in crime, offenders themselves and the individual propensity to engage in crime. C. Meso level – The situational factors that surround the crime. For example, the criminal event itself… everything that had to be occurring surrounding the criminal for that event to occur. The Biogenetic Explanation: - At its core was the notion that criminals inhertantly different from other people, even down to their appearance. - The explanation was prompted by Franz Joseph Gall’s phrenology and Italian Criminologist Cesare Lombrosso’s concept of the born criminal as an atavistic type - Phrenology looks at the skull and the shape of the head and brain make up. - When he talks about criminals being atavistic he talks about them being less evolved and that is why they engage in crime. Psychological Explanation: Sept. 17  2013  09/10/2013 - Most famous came from Sigmund Freud - Freudian approach can be viewed as a reflection of the eternal conflict between the desires of te individual and the needs of civilization - Refers to the Id, Ego and Super Ego - The ID is all your desires and strong emotions and impulses - The SUPER EGOis our cultural norms, based on reality, I may way things but reality tells me I cant just have them, knowing right from wrong. - The EGO is responsible for refereeing between the ID and the EGO, your conscious or your moral compass. - Freud would say that if someone commits a crime we have been unable to control the ID Personality: - Personality is the most typically associated with the behavioral characteristics of an individual - Character and identify are associated with an individuals nature, especially his/her moral or ethical qualities. - Research done shows that people who engage in white collar crime have very normative behaviors or personality - Problem with this is that just because someone has big morals doesn’t mean they’ll act according to this under pressure or desire to succeed - Personality theories have been looked at as not good when explaining white collar crime Sociogenic versus Organizational Responsibility - Some theoretical and empirical work that adopts a sociogenic framework also addresses the matter of criminality especially in terms of alleged differences in criminal propensities among members of different social classes Ex. Gottfredsona nd Hirschi Gottferdson and Hirschi’s Theory: - General Theory of crime - Big idea is that we can explain all crime off of social control - People who posses high levels of self control are less likely to commit crime and vice versa - More crime among lower class because they are less able to express self control - When we engage in the common practice of referring to organizations or networks of organizations as actors, we are not simply speaking of a sum of people and their individual actions but of patterned institutional practices Sept. 17  2013  09/10/2013 - Cressey’s criticism were that Sutherland cant give organizations personhood, they can learn or have motivations and cant form intent. This is important when looking at crime because to be guilty you need mens rea or intent. Organizational Responsibility: - in a specific respeonse to cressys critique, Braithwaite and Fisse defend the notion that corporations can take criminal action and can be properly held responsible for such action - The question of who should hold the responsibility ? - it is very rare that all personelle in a company or corporation are involved in the crime and therefore the corp cant be held responsible Organizations create opportunities for illegal conduct by: - Disproportionately serving affluent, accessible victims, you can oonly steal from investors if you have investors - Generating impersonal transactions, never really one on one with victim - Creating and allocating resources, who’s responsible for what, who gets what resources - Providing strategic devices to facilitate and cover up illegalities, generally if there’s something weird going on people know about it, but people easily cover it up - Conditioning the development of new normative prescriptions capable of being violated. Generally the way corps are set up is that there is a constant goal to out do competitor and this doesn’t always happen if you are doing things legitimately The Various Dimensions of Organizational Criminality: Different levels of organizational analysis are relevant to understanding organizational crime 1. Psychological Level- where the corp is viewed as an environment that can influence behaviour and attitudes in a criminal direction, wanting to do the best for the corp. Creates environment tat fosters criminal behaviour 2. Structural Level- the way it is structures allows people to take advantage of position 3. Ecological Level- Viewed as part of a bigger environment that has criminogenic tendencies, promotes competitions and greed. The way the whole marketplace or society is set up. Bottom line is number one… do what you hve to do. - Some organizations are crime coercive whereas others are crime facilitators Sept. 17  2013  09/10/2013 -Theories of corporate crime have either attempted to explain why some corporations commit crimes and others do not or have addressed the apparent overall increase in corporate illegalities at particular periods of time - Some organizations are crime coercive, whereas others are crime facilitators. Crime Coercive: - competitors cheating, if you don’t cheat too then you’ll fail… compelling people or co-workers to commit crimes. Crime Facilitation: - Individuals provide conditions or structural features that promote criminal behavior. Externally, a variety of factors are related to corporate crime, including things like: - economic climate, recession or not - Political or regulatory environment, how much freedom d o they have - How much competition there is - Different types of normative traditions that exist - Corporations are more likely to engage in corporate crime when legitimate opportunities to achieve their goals are blocked but illegitimate opportunities are available Explaining white collar crime: Theories and Perspectives - Many explanations of white collar crime focus more on the crime rather than on criminality, more on the criminal event itself… what happened.. the situation as opposed to why the person was motivated to do it. - There is a structural perspective taken when looking at criminality, there was a structural situation ex. Poverty which caused the people to commit the crime… the structural perspective also says to look at the distribution of resources and power in society - people who have power define crime, this is important for studying white collar crime because it explains why white collar criminals haven’t being legally dealt with yet… people with power are committing the crimes and the people who are writing the laws. - Juries often side with white collar criminals because they identify with them… they believe they are good people that either didn’t commit the crime or made a mistake and are sorry. - Problem with having fines as a repercussion is that the shareholders and consumers end up paying for the mistakes… come up with all these new fees to wipe out major fines they have incurred. Sept. 17  2013  09/10/2013 Theories of Crime and White Collar Crime: 1. General Theories of crime- Theories can be used to explain every variety of crime that exists Sutherland’s differential association as a general theory - This says criminal behavior is learned just like everything else in a persons life - Problem with these general theories is that they are too simplistic 2. Classical Criminology and Rational Choice Theories- main argument of classical is that criminals are free to make choices and its their on fault… based on individual responsibility and that Beccaria (Rational Choice theory) said that punishment must be swift, certain and proportionate to the crime committed. Benthams hedonistic calculus: - Bentham calculate to maximize pleasure & minimize pain - Is the Pleasure out of this better then the cost ill have to pay Limited Rationality: - Make a choice based on something that is expected of them… broke the law because if he didn’t he would have been fired. 3. Routine Activities Theory- -Developed by Felson, in order for crime to occur there must be three elements a. Motivated offender b. Suitable Victims, people that wont believe they are being victimized c. absence of guardians or regulations. 4. Social Control Theory - Big question is why doesn’t everyone engage in crime? - The answer is that people with strong social bonds to conventional norms and institutions believe it is wrong, they believe victimizing others is wrong. - This would mean that people who have stronger onds to corp over society will engage in white collar crime. Sept. 17  2013  09/10/2013 Control Balance and Control Fraud Theories: 5. Control Balance Theory - “control balance ratio” - Crime and deviance are a function of the control a balance ratio - This is the ratio between the amount of power r control someone has relative to the amount of control that is imposed on them - there is either a surplus or deficit of control fosters criminal behavior - surplus would foster criminal behavior because if you have all this power and control your going to be more likely to think you’ll get away with it - Adeficit would lead to criminal behavior because of a hunger to get ahead or what do you have to lose if your at the bottom… also people above you coercing you to do these criminal things 6. Control Fraud Theory - Control over an organization is realized they use the organization as a weapon - Not necessarily based on using the skills to get the corp ahead its using resources to get yourself ahead. Social Process and Learning Theories: - Social process looks at crime in relation to social processes 7. Differential Association Theory: - Used in the top - If your friends with people who don’t break the law you probably wont either - Big limitation is that it doesn’t account for structural origins that exists with illegal conduct. Interactionism and Labeling Theories: Symbolic Interactionism: Sept. 17  2013  09/10/2013 - Symbolic interactionism says the thing that is the most important is the meaning we ascribe to our interactions or events - Not everyone views something as bad, the meanings we give things are key - Everything in the world is based off the meaning we give to them 8. Labeling Theory - Interactionism theory - We don’t care about person or event … we care about what happens after and the meaning society as a whole gives to the person after the crime… label them as a criminal - Labels can be either positive or negative. - Not good for explaining white collar crime 9. Neutralization, Rationalization and Accounts Theories - How white collar criminals neutralize and rationalize behaviors - they are law abiders … So, how do they become lawbreakers? First, you must understand a vocabulary of motives: - Excuses, get defensive, justify actions try to excuse behaviors - Justifications, I was doing it for the greater good, for my family etc. - Neutralizations, not a big deal - Accounts, these come up after, people with change the story accounts will vary - Rationalizations, mental processes which allow individuals to overcome internal guilt and justify the crime to themselves Structural Strain and The Structure of Opportunity Theories: 10. Durkheim’s anomie theory - Anomie meaning a situation of normalness Sept. 17  2013  09/10/2013 - Recent recession would be a situation of anomie - Example of this is in the 80’s with the insider trading claims… linked to anomic situation which fostered enormous pursuit of money 11. Merton’s revised anomie theory - Merton revises Durkhiems - Defines anomie as an enduring situation.. ongoing in society where we have goals and means and they don’t match up… disjuncture between means and goals. - Example is living theAmerican dream… but not having the means to attain it. - Everyone uses innovative means to still achieve the goal. There are theorists who have produced variations of Merton’s theory: - Status deprivation theory: lower status kids who come to the realization that they cant achieve same things as upper class kids so they turn to criminal behavior - Middle class measuring rod… all kids expected to be measured to middle class standard and results in criminal behavior - Differential opportunity theory: We all have different opportunities. Unequal access to resources in the way society is structured - General strain theory: Based off Merton’s strain theory, throw in idea that people have same strain but have different coping methods like working harder instead of committing a crime and distinguish between different types of strain … failure to achieve positively valued stimuli, loss of positively valued stimuli and presentation of negative stimulus. - Institutional anomie theory: It is social structure itself that leads to anomie. Sense that we should all achieve this same thing I life creates anomie. Conflict Theory and Criminogenic Societies: - Developed by marx 12. Conflict Theory - The conflict of various values and interests - rejects consensus that social world is an integrated place… it is conflict that exists - There is not consensus among us there is conflict Sept. 17  2013  09/10/2013 The Structure of Contemporary Capitalist Society and WCC: 13. Marxist or Neo-Marxist Theories - Capitalism promotes criminality - Rich getting richer and poor getting poorer creates problems and criminality because it exploits the working class - People want more and can never have enough.. people focus on individuals and not the greater good - Two limitations is that it doesn’t explain high levels of white collar crime in socialist society or not capitalistic society and how this crime has different variations among capitalistic societies. - The second is that it is not helpful in explaining why some individuals don’t commit crime. 14. Radical or Critical Theories - New perspectives born in 80’s and 90’s - Things such as feminist criminology or peace making criminology Integrated Theories of White Collar Crime: - people who have taken pieces of theories and glued them together to make integrated theories. - Coleman (1987) developed an integrated theory that centers on the coincidence of appropriate motivation and opportunity. - emphasizes possessive individualism… people take care of number one and care about no one else. - This tends to removed what in the past has united us as a group.. people engage in crime because they don’t care about how they affect anyone else. - Braithwaite (1989) based his integrative theory on two traditions… - Differential association and Marxist something - Critical Criminologists typically adopt integrated theoretical approaches that take into account a variety of variables - operate on level of the organization of the economy … is it based on a hierarchy? - Market forces, rationalizations etc. Sept. 17  2013  09/10/2013 Assumptions and Perspectives: - Privileged classes have more influence in defining WCC - will generally create the laws to benefit themselves - Those who commit WCC claim to be moral while rationalizing their own illegal and unethical activity - The law favours those with power and influence, law enforcement gets a lot of money from these high status individuals and therefore they create and enforce laws in their favour TwoApproaches: 1. Positivistic: WCC can be studied “scientifically” and empirically using quantitative techniques primarily - Engage in research such as numbers or quantitative research, systematic observation and quantitative analysis - Problem with this is that it is impossible to know the rate of white collar crime… 2. Humanistic: WCC can be viewed as a social construction using interpretive and qualitative techniques - Rejects traditional scientific approach, looks at humanities… more qualitative approach … this makes more sense - interviewing people who have been processed in the system - We know that traditionally people like numbers… they like to see statistics Challenges in Studying WCC: - Unit of analysis has shifted from the individual to the organization, this is problematic because WCC si already complex… grouping an entire group together is even more difficult to convict.. easier to go after individuals - It is difficult to gain access to research, people use street crime versus suit crime… problem is that a lot of suit crime happens behind closed doors - Statistics are hard to come by, stats can has been trying to gather more information but it is virtually impossible… only way to do it really is self report but will people be truthful? - Research dollars are also difficult to obtain, doing gov crime and asking gov for money it isn’t going to happen … they make the argument that the public doesn’t necessarily care about it they want to get the bad people off the street Nature of White Collar Crime: Sept. 17  2013  09/10/2013 - Because this field of study is complex, one must understand aspects of many different fields, including: - Economics - Management - Law - Sociology - Psychology - Organizational theory - To do research you need to know a little bit about a lot of different things (outlined in reading notes as well ) - It is difficult to get powerful people and institutions to cooperate with a white collar crime research project, most of the time we are denied any sort of access … no one wants to cooperate Research Methods: - Journalistic accounts - pros and cons? Cons: - credibility and quality of information vary from where you are hearing it from… no requirement for media to give real information - Bias towards sensational types of crime, crime that evokes emotion. - Don’t usually have evidence to make generalizations from access we’ve seen in media Pros: - They exist, major media outlets have a lot of connections and money that allows they to get into places researchers usually cannot Case studies – detailed accounts of particular cases or examples - In-depth study of a single case Pros: - Gives concrete examples Sept. 17  2013  09/10/2013 Cons: - Cant be generalized based on one case Methods: Experiments (WCC not all that useful) a. lab experiments rarely used- don’t happen b. field experiments sometimes used- don’t happen c. natural “experiments” which are really comparisons of existing circumstances, allow researcher to observe but not manipulate… based on observation Surveys a. obtaining representative sample, we don’t know how much WCC exists so we don’t know how many people we need to represent WCC b. obtaining a good response rate high enough for the response rate to be meaningful. c. creating unbiased questions that are not loaded,,, that wont let them know that your trying to figure out if white collar crime exists in that establishment. - Surveys are still beneficial because they are anonymous and therefore people are more likely to be open Observational Research —while often used in street crime research, it is not so easy to apply in suite crime contexts - This works better with street crime… seeing and recognizing the crime happening in front of us… cant do this in a suite behind closed doors. Secondary Data -- usually statistical data collected by agencies such as Statistics Canada. - Using such data, is may be possible to reconstruct the historical trajectories of crime sequences in a method known as event history analysis - Taking data collected by someone else and analyzing in regard to your research question. Sept. 17  2013  09/10/2013 Archival data analysis – larger corporate crime scenes will have extensive archives and records which can be used to obtain convictions as well as provide records for research purposes after the fact. - You as a researcher are able to access these archives you have access to a lot of good data - This can be problematic for researchers because it is difficult to gain access if any and will only allow you to see what they want you too see -Very selective nature of what people decide to record. Wont record things they know are illegal Content Analysis – this involves examining content (usually the media) for evidence of coverage, bias, etc. - Systematically analyze representation of phenomena in the media - Victimization surveys and other forms of self report data can help fill in the holes with respect to the incidence of WCC - But….victims are sometimes not even aware they have been victimized, or become aware much later - And…victims are often too embarrassed to admit that they have fallen victim to a fraud scheme Measuring White Collar crime: How Prevalent is it? - We have no idea how much WCC exists but we know its more then the stats that exist. Critical view: - Crime statistics are products of particular agencies and entities, each with ideological biases, strategic purposes and finite resources - Statistics of official agencies direct much more attention to conventional crime than to white collar crime - Victims often unlikely to report white collar crime. The Costs and Consequences of White collar crime: Sept. 17  2013  09/10/2013 Measuring the economic cost of crime is more difficult for white collar crime than conventional and other forms of crime because: 1. Of ongoing disputes about defining and identifying white collar crime 2. Ahigh percentage of white collar crime is either not reported or officially identified compared to conventional street crime 3.There is no uniform way to measure costs even when a crime is identified and reported The cost of WCC: - Direct Costs: Things like fraud, sealing money from someone we know how much money it was, defined by victims losses - Indirect Costs: Things that would include with conventional crime things such as installing a security system in their home. For white collar crime they would be things like having higher taxes to pay for all this bad stuff that is going on, more expensive insurance rates, higher prices etc. Suffering of WCC victims: - Physical Costs- Death or injury at work, working in contamination, using unsafe products etc. - Psychological costs, how does knowing you were victimized effect you? Victims of White Collar Crime: - We are generally less likely to be aware of the victimization than when victimized by a conventional crime - Workers and employees are victimized by hazardous and illegal conditions - Consumers are victims of price fixing and the sale of unsafe products - As customers, clients and patients, we are victimized by unethical practices - As citizens and residents, we are victimized by corporate pollution - Victim Blaming Sept 24 / 2013 09/10/2013 Corporate Crime Part 1: Historical Development of the corporation and corporate crime: - In theAnglo-American tradition, the earliest corporations were churches, towns, guilds and universities - Aguild is a group of people who are able to control their practice, a bunch of people with a similar profession who make a union, everyone involved in the group has the same skill. - Over time, these corporations were recognized as trusts with legal control over certain property - Cut off some government regulation and oversight and low corporations to run free - Sometimes we see that this doesn’t always benefit, small corps trying to compete with big corps such as walmart. Devastation of the Native Americans and the Slave Trading of Africans: - These trading corporations played a central role in massively harmful acts - Sale (1990) –environmental despoliation and destruction of Native cultures. - Says his account of Christopher Columbus, describes him a ruthless man who brought genocide of the natives and environmental destruction - Create the virgina company, a group who collected information for queen Elizabeth, looking for ways for her to make money ie. Is there gold. - Purpose of the invasion of theAmericas was a profit making business. - Williams (1966) –Abolition of slavery in the West-Indies as a product of capitalism rather than humanitarianism. - Slave trade maintained industrial rev but abolishing it would allow capitalism to expand and we would see the intro of slave labor - We would be able to increase quality of products. - Increased peoples ability to complete… makes us think if abolishment of slavery was Nobel or if it was advantageous for capitalism Historical Development of the Corporation and Corporate Crime: - The Industrial Revolution gave rise to powerful and wealthy capitalist corporations with relatively little regulation, this is supposed to be advantageous - Robber (criminal) baron (illegitimate aristocracy) - People who used questionable practices (unethical) like selling products at very low prices by paying workers hardly anything so no one could compete with them, buy out competitors and once there were no competitors they would sell products for whatever they want because they were the only people who now provided it to them. Sept 24 / 2013 09/10/2013 - These corporations were largely invulnerable to legal controls th - Those who ran the corporations in the 19 century Corporations in Canada - Federal and Provincial governments have corporate statutes. - Corp might be incorporated under a federal charter which means they can expand to any province - Oldest corporation in Canada is the Hudson’s Bay Company, number of steps to be recognized at fed level - In the US each state has to recognize a corp if they are going to move to their state, no freedom of mobility like in Canada - Federal corporations are regulated by the Canadian Business CorporationsAct. - Provinces cannot legislate in a way that is inconsistent with federal law. - Not considered ‘persons’in the way the US Supreme Court understands corporations. Corps don’t hold personhood in Canada. (citizens insurance CO. versus parsons) The Corporation in modern Society: - Corporations as the centerpiece of a free-market capitalist economy. - Term free market means that it is good for everyone, a lot of competition so consumers can have low prices but this isn’t necessarily the case Benefits of Corporations: 1. Produce products we purchase and consumer 2. Sponsor forms of entertainment 3. Important benefactors for charities - There is a dark side to most corporations which was recognized by Karl Marx (and Engels) - Karl Marx is important because his main idea is that the higher class is taking advantage of the lower class, makes argument that no everyone Is created equal and rich take advantage of this and capitalism makes this so much worse. - Corporations as inherently exploitative (how?) Sept 24 / 2013 09/10/2013 - 21 century,American corporations characterized as “the new sovereigns” - Power Elite, people who control most of the worlds money. - Corporations as controlled by ‘paper entrepreneurs’, basically investors who pare primarily interested in short term profits - Marx believed that corporations exploit and dehumanize workers - Pursuit of profit is the principle rational for the corporations to increase profit Corporate Violence: Corporate violence differs from conventional interpersonal violence in several ways: 1. Indirect, not going up to someone and physically assaulting them. Generally something happens as a result of negligence, something to do with safety, something overlooked 2. Removed in time, people die a long time after, health consequences which catch up with them 3. Large numbers of people, many people responsible 4. Motivated by profit, number one goal of corporations. Environmental Crime: Unsafe Environmental Practices: - The most common form of corporate violence is the contributions of poisoning the environment - Even though this is the case it receives very low amount of attention, people know its happening and ignore it - Much evidence indicates that corporations either knew or should have known of the risks arising from their dumping of toxic wastes - Cancer is the only thing that has increased in the last decade - Others are birth defects, genetic disorders etc. Environmental Crime and Harm: - Classifying what is an environmental crime involves a complex balancing of communities’ interest in jobs and income with ecosystem maintenance, biodiversity and sustainability. Sept 24 / 2013 09/10/2013 - Various pieces of legislation, both federally and provincially (as well as associated regulations), serve to protect Canada’s environment. - No clear definition of environmental crime in many countries, which leads to confusion and debate. - No Definition of environmental crime. What should our laws protect? - 2 main approaches - Legalist Perspective, goes against criminal laws put in place to protect on environmental crime suggests that enviro. crime is a violation of criminal laws designed to protect the health and safety of people. Criticisms? - What does enviro. Crime include? How do we define environment? - Socio-legal Perspective on enviro. We don’t only care about what the law says we care to look at other things to measure if corps are doing things the right way. Air Pollution: - Automobile emissions constitute a significant proportion of the air pollution problem and some cities have generally unhealthful air conditions much of the year - blame consumers, dont bring it back to the people who create the cars. Chemical Warfare: - 1 in 4 can expect to contract cancer over the lifecourse [increasing] - “Most researchers argree that 70 to 90% of cancers are caused by environmental influences and are theoretically preventable” - Lewis Regenstien (1982) Pollution - Race and Toxic waste, race is the most important factor to finding a place to dump toxins waste - 3 in 5AfricanAmerican live in or around toxic waste - The Love Canal Case, Hooker chemical company that emptied toxic waste and built a school and community on top and residents and school goers got sick, canal right through community. Built by William Love Sept 24 / 2013 09/10/2013 Cigarette smoking - “Tobacco companies have given more than $32M in political donations to state and federal candidates and political parties” (1995-2000) - Correlation between $ received & votes on tobacco bills Food additives - Artifical dyes, chemicals - Innfants and children- carcinogens and neurotoxin pesticides. Exporting Toxic Waste: - In the U.S. it costs approximately $4,500 per ton to dispose - Developing Countries – some will accept our waste for as low as $ 3.00 per ton nd - “Illegal disposal of toxic waste is 2 in profits only to trafficking in illegal drugs in the U.S.” (Thompson and Hickey 2011) Crimes against Employees: Unsafe Working Conditions - For most of history, employers were not liable for death, injuries and illnesses suffered by workers as a consequence of workplace conditions - Not able to accurately determine how many deaths are caused by the workplace - According to various sources, work-related accidents and diseases have been the single greatest cause of disability and premature death in the US today - Alot of young people die in the workplace - When regulations are increased and more control over conditions are placed businesses will pick up their business and ship it to another country where they can do whatever they want and pay workers next to nothing, the more you regulate the more chance there is they will leave Fatalities on the job: Sept 24 / 2013 09/10/2013 - Problem that exist with this this that the above chart are the ones that have been counted. Doesn’t include the others Liability: - Liability is Saying a company is responsible for something that has happened but then the question becomes who should be responsible. - Criminal vs. Civil court, generally civil court is more prominent, easier in civil court because burden of proof is a lot different, balance of probabilities… you need to be 51% responsible for a person injury --“Murder” vs. “Accident” -- Criminal negligence Occupational Injury and Death: - A“crime clock” shows a murder occurring in the U.S.A. every minutes. If there were an “occupational death clock”, it would show a, occupational death occurring every 15 minutes. - Rates are significantly higher then our homicides - 1 in 4 workers currently suffer from occupational diseases - People may realize they are sick and work through it so they don’t endanger their chances Sept 24 / 2013 09/10/2013 Canadian Example of Workplace Laws: - The Westray Bill or Bill C-45 of 2004, provides new regime that outlines a corps liability and a new punishment scheme, allows them to put company on probation - some made argument that c-45 was a political ploy and wouldn’t change things - Since this legislation was put on the shelf in 2004 it has never been used - Named after the Westray mine disaster and was meant to be a way for the courts to put corporations on probation (rather than simply fining them). - Issues with heads of mine not wanting to take safety precautions, found it was a direct response of criminal negligence… new there were problems but they still sent workers in - Found employer to be negligent in court. - Under used piece of legislation? Recent Canadian Mining Example: - On June 8 2011, two miners at a nickel company called Vale were killed on the job when an avalanche of wet rocks, gravel and sand crushed them - Vale basically found that they failed to take reasonable precautions to protect workers - Man who died warned main office about a build up of water and the men died in a mud rush -happened in Sudbury Ontario Crimes against consumers: “free Market” - Thought to decrease price and increase quality, this isn’t happening but people will continue to buy for the name - Canada is a modern day capitalist state - Fueled by profits generated by consumption, people want to consume more and more products - Thankfully we have a free market economy! [or do we]? - OR “buyer beware”? if you want a good product do your research, find a product that’s cheaper and just as good Crimes Against Consumers: - Consumer fraud, use of deceit or laws to convince customers they should buy your products - Use of deceit, lies, misrepresentations to entice customers to buy goods or services - Who do they target? Sept 24 / 2013 09/10/2013 - People like children, advertising directly to kids - Vulnerable people like disabled or elders, having multiple anniversary sales or closing sales. Corporate violence against consumers: unsafe Products - Corporations will inflict harm on consumers when the drive to maximize profits in the marketplace takes precedence over concerns about consumer safety - 2008, U.S. Consumer Product Safety Commission issued product recalls for numerous different products found to be potentially dangerous Consumer Safety in Canada - Health Canada develops and enforces regulations under Government of Canada legislation. Goals: 1. Develop standards and guidelines 2. Enforce legislation 3. Test and research products 4. Provide manufacturers with information 5. Publish warnings and recalls 6. Promote responsible use of product Canada Consumer Product SafetyAct- 2011 - adopts modern techniques or tools to strengthen the protection of Canadians - Doesn’t include motor vehicles, food, drugs and animals. - Modern societies make the application of such acts more complex. - Act arose from consultations with stakeholders, industry representatives, consumer groups, children’s organizations, standards development organizations, members of government, and the general public. - Applies to a wide variety of consumer products - Prior, Health Canada could request that manufacturers recall unsafe products, but could not demand it. Now they can demand a recall. - What businesses are covered under the act? Essentially any business that manufactures, sells, distributes packages etc. What products are prohibited? 1. Prohibited Products (schedule 2); baby bottles, lawn darts, baby walkers etc. 2. Products not compliant with regulations; things like candles, baby clothes, window coverings Sept 24 / 2013 09/10/2013 3. Pose threat to human safety; 4. Recall products; 5. Faulty products 6. Mislabeled products. - If a recall is ignored it may be ordered that they have to take action at their own expense and if they ignore this health Canada will impose a fine which is lower then the company would have to pay if they go to court. Helath Canada also has the ability to distribute information they have about product to the public. As a last resort they can take a company to court which could result in a fine or jail. Generally speaking this doesn’t happen Nestle baby Formula: - Aggressive marketing in the 1970s – particularly in less developed countries They: - Created a need where there was none - Convinced mothers the products were indispensable - Linked products with most desirably and unattainable outcomes - Gave samples Problems? 4 identified. 1. problem with this is that formula has to be mixed with boiled water, they don’t have this 2. Though they did understand sanitation they didn’t necessarily have the time or fuel to boil 3. Many poor moms used less formula than was necessary 4. Breast milk has natural benefits that are lacking in formula - banned promotion of any of these sorts of things… not allowed to adv. Something as needed that they do not need WHO & outcome - Nestle was never prosecuted, never actually took down their ads Pharmaceutical Products and Medical Devices: Sept 24 / 2013 09/10/2013 - Pharmaceutical companies can be characterized as “pushers” insofar as they spend millions of dollars on advertising and encourage their sales representatives to use various inducements to persuade physicians to prescribe new drugs and other products - Kickbacks, every time you sell you get a percentage - Winning and dinning by pharmaceutical reps - Illegal vs. unethical practices Pharmaceutical Companies and the internet: - Deceptive practices by pharmaceutical companies on the internet. - Eavesdropping on patients’discussions on social networks and tracking their ‘digital footprints’. See if people have symptoms and anon. contact the people - Supposedly independent bloggers posting reviews. Another example: drugs are good for you - Disease monger, dealing in the disease commodity… create disease or symptoms that need medication or treatment. - The Global Pharmaceutical industry is the world’s most profitable stock market sector The Biggest Scams: Auto industry - Sears automotive repair centers; 1990 - Bunch of researcher got together and sent fully checked out cars and put on old break pads to get break pads changed and found that 90% of the time they were over charged by avg. of 250$ for things that were not issues. - AAMCO; convinced people they needed new transmissions and people made old transmissions look newer and charge them for it -Sold people own transmissions. Telemarketing scams - Targeting the elderly, elderly don’t know that scams exist Sept 24 / 2013 09/10/2013 - Also all elderly have home phones and make up a large part of population - Got some cash and are home more often - Older spend more time on phone out of politeness; culture thing - Tend to be lonely Shipping problem products Elsewhere - 450,000 baby pacifiers have been exported since a ban was proposed by the CPSC due to caused choking deaths - Winstrol, male hormone banned and freely available in brazil… found it causes helath problems - Lomotil, anti diareah and pretty much fatal - Pfizer illegal trials of meningitis drug that killed kids in developing nations Oct. 1 / 2013 09/10/2013 Opening Discussion - Edwin Sutherland concludes that for the most part, for large corporations, profits are always more important that patriotism. - He essentially when he says this is saying that they will do anything to make a bigger profit, for example, taking jobs away fromAmericans by outsourcing to have cheaper labor - Edwin is important because he coined term white collar crime and really introduce it as a problem and something we should research ** Know for midterm* - He focuses totally on corporate fraud - Based on previous discussions in class, is this conclusion warranted? YES Government Fraud - Illegal acts that are intentionally divesting government funds, not paying money to the government that you should… for example avoiding paying taxes. - Corporations with contracts to provide goods and services to the government have defrauded it of billions of dollars - Who pays the price? Consumers, because we then pay more taxes if the government needs more funds. First move is to increase the taxes of the working class. Types of Government Fraud 1. Procurement and Contractor Fraud - Procurement means essentially the acquisition or goods or services from an external sources… ie. Hiring a private corporation to provide a service. Hiring out of the government - One of these external forces dishonestly attains an advantage, like cutting costs, labor mischarging and overcharging, defective charging, using sketchy materials, substituting products. - Some examples of contractor fraud would be inflating the cost of supplies or labor. - Three main aspects would be that a. it generally involves a lot of money b. offenders are usually major corporations not small businesses c. Corporations are not deterred by legislation telling them not to do things like this - Dealt with on a civil level because its indirect, no one directly getting hurt and also no one to blame, cant put an entire corporation behind bars. 2. False Claims and False Statements - Includes things such as social security, collecting EI when your not eligible… trying to get money from the government for an invalid reason 3. Health Care Fraud ( Discussed Below) Oct. 1 / 2013 09/10/2013 - Corporate and government related fraud is very costly to the working class Health Care Fraud: - “An intentional deception or misrepresentation that the individual or entity makes knowing that the misrepresentation could result in some unauthorized benefit to the individual, or the entity or to some other party”. (NHCAAGuidelines to Health Care Fraud) - “Health care fraud remains uncontrolled, and mostly invisible. … … this problem represents one of the most massive and persistent fiscal control failures in their history.” - Often very costly to investigate cases end up spending more money investigating then its worth - Every day citizens pay the price for this by paying more to see doctors and longer wait times - “For those who profit from it, health care fraud is not seen as a problem, but as an enormously lucrative enterprise, worth defending vigorously.” - Malcolm K. Sparrow - Health Care Fraud in Canada - Fraud in Canada –Section 380 in the CCC and punishable by up to 14 years in prison. - Estimated that health care fraud in Canada could be more than $12 billion dollars each year. Canadian Examples: - Winnipeg-based Internet Pharmacy ( –September 2012 - This is believed to be Canada’s biggest online pharmacy and has been told to stop selling drugs toAmericans because of all the faulty pills they are selling - In Edmonton, a chiropractor forged the signature of a woman who suffered a massive stroke – October 2012, never sat down and told the risks associated with the surgery Types of health care Fraud: 1. Services not rendered- billing for services you never actually did 2. Upcoding- billing for more expensive procedures that were never actually preformed or used. 3. Unnecessary Treatment- Preforming medically unnecessary purposes to generate insurance pay off 4. Misrepresenting Services- Preforming medically unnecessary purposes to generate insurance pay off Oct. 1 / 2013 09/10/2013 5. Unbundling Services- Being convinced to get a number of services at different times so that you don’t have to pay multiple times for the same things (Exmaple, filings) 6. Theft/Mispresentation of Identity- Using someone elses identity for a health care service 7. Malingering- Exaggerate your problem to get a bigger pay off 8. Doctor Shopping- When you need a prescription and you go to five different doctors to get 5 different prescriptions 9. Misrepresenting Eligible Dependents- pretending you have a dependent when you don’t. Canadian Health CareAnti Fraud Association: - Founded (formally) in 2000 - Strategic Partnership of Canadian private and public health care insurance payers, and Law enforcement - Trying to crack down on fraud in Canada - membership open to regulators ad provider associations - Patience not a part of this Who Commits health Care Fraud ? 1. Providers- Physicians or health care staff 2. Suppliers- Supply products 3. Patients 4. Plan sponsors- people at the insurance level - Often these people work alone but can conspire victims of health care Fraud: - Financial Victims - e.g. Insurers, Employers, Public at Large - Higher taxes / premiums / prices - Less money available for the deserving, people who actually need the surgery Oct. 1 / 2013 09/10/2013 - Reduced coverage/ insured services, insurance companies charge more and give you less - Potential of Physical Harm, rush surgery to get more patients in - False medical/billing records may affect future employability and/or insurability Some Case Studies: - CBC TV Investigative report - dental - Awoman from Brampton charged with 234 counts of double doctoring and fraud for prescription narcotics - Apharmacist charged with obtaining prescriptions for high priced drugs and paying the patient a percentage of the total prescription – not dispensing the meds however billing ODB for the prescription. - AUS citizen charged who was receiving insured medical services for which he was not entitled - Foot care practitioners charged with submitting fraudulent claims to OHIP - APharmacy case – fake Norvasc medication being dispensed to clients and the coroner investigating if this contributed to the deaths of multiple patients - Norvasc = high blood pressure medication - ACanadian pair who were charged over their fake Cancer clinic – this affected over 800 patients in Mexico totaling 12 million dollars The Hospital Issue: - Canada HealthAct - Sets diff conditions ac criteria for the province to abide by so the fed will pay for their hospital stuff - Example, we cover the ward beds but not semi private rooms etc etc - If there was no ward rooms available, youd have to pay for the semi private room… the feds wont pay for people to stay in these semi private rooms bc its in the Canada health act - Billing for semi-private coverage when no ward rooms available - Patients are being implicated in the fight over funding Corporate TaxAvoidance and Evasion - Tax avoidance vs. evasion - Tax avoidance is not illegal, Evasion is illegal Oct. 1 / 2013 09/10/2013 - Avoidance would be tuition tax benefit… avoiding paying full taxes - Evasion is when individuals are trying to evade taxes illegal or through illegitimate means - Major corporations cost U.S. taxpayers huge amounts by evading their fair share of the tax burden - Major corporations with net incomes in the hundreds of millions were paying virtually nothing in taxes - Example, ENRON and Dolce and Gabbana - Between 1990 and 2000 ENRON paid taxes only one time, wipes out competition because competitors will find it hard to compete with someone who doesn’t pay taxes… only reason they found out about this was because of a whistle blower - D&G tax evasion - main reason lawyer upset is that they were found guilty in criminal court and have to do jail time, would have preferred to be found guilty in civil court. Price Fixing: - Agreement between two types of corporation in an attempt to control supply and demand by agreeing to sell something at a certain price. - Price fixing as a conspiracy between buyers or sellers, coordinate price - Push price of product high as possible leading to heightened profits - Law in the United States - ShermanAntitrustAct (criminal offence under S. 1) - Law in Canada - Competition Act (S. 45) - This is considered an indictable offence under section 45 - In countries other then US can, Australia and japan price fixing is not illegal Price Gouging: - Seller increases price after demand or supply shock such as after a natural disaster Price gouging: criteria: Oct. 1 / 2013 09/10/2013 - Period of Emergency - Necessary Items, most laws include items essential for survival - Price Ceilings, laws limit max price to be charged for certain goods. - Primary concern: exploitation of consumers - Creates psychological demand that isn’t realistic FalseAdvertising & Product Misrepresentation - Canada - Competition Act, regulates false advertising talks about misleading marketing practices United States - With the passage of special laws and the Federal Trade Commission (FTC), action against false advertising was somewhat facilitated Response: require a modification or discontinuation of a misleading advertising campaign Employees as Victims of Corporate Crime - Economic exploitation of employees; driving down wages, decreasing high waged union jobs - Corporate stealing from employees; theft, extortion, unpaid over time - Unfair labor practices; denying right to strike or bargain collectively for increased rights - Employee surveillance; intrusive technologies; follow employees around Monopolies: - Corporate competitors Oct. 1 / 2013 09/10/2013 - Robber Barons - Sutherland: Reducing sales & increasing costs; corporation use two principle methods to start annihilating competitors - Corporate illegalities: 1. patent infringement 2. Trademark infringement, 3. Copyright infringement, protection of something written - John D. Rockefeller & Standard Oil Universities and Colleges as Corporate Criminals - Is the characterization of universities and colleges as corporate criminals warranted? - Misrepresenting services, profs not teaching you what they say they are going to teach, textbooks and textbook companies - Would you expect institutions of higher education to be more or less criminal than other types of corporate entities? Oct. 8 2013 09/10/2013 Occupational Crime Occupational: Crimes committed within the context of a legal occupation - using occupation to carry out crime – i.eAccess to funds - usually for economic gain Retail Crimes – false advertising, hidden charges Retail Fraud – ripping people off Medical Crimes – price fixing, inappropriate drugs Legal Crime – over billing Academic Crimes – student level and administration level – unethical research practices, research grants being used for personal use Religious Crime – misuse of church funds Employee Crime Oct. 8 2013 09/10/2013 – frontline people would do – stealing a shirt from work, calling in sick when you’re not sick Avocational Crime - Not necessarily in the context of your work - Violation of trust, for personal gain Avocational crime: -crimes committed by respectable people outside of an occupational context -Income Tax evasion -Defrauding insurance companies -Providing false financial information for personal gain -Evading customs duties and levies -Downloading copyrighted materials such as music and movies Special Topics in Occupational Crime Sex and Bank Embezzlement - Women’s involvement varies depending on the type of crime and type of organization. – less likely to be involved in bribery, taking money from the bank - 45% - 60% of the female embezzlers were bank tellers - 14% of male embezzlers were bank tellers Oct. 8 2013 09/10/2013 Sex and Bank Embezzlement: Motivations - Importance of self and family different between men and women Women - Families 30-35% - Financial gain 10-15% - Frustrated/distress 15-20% - Influenced Men - Families 30-40% - Influenced - Financial gain 10-20% - Financial need for business 20% - advance their own career Defrauding Vulnerable People -In a study conducted by David Caplowitz, he found that the poor were: - Being overcharged - Sold inferior goods – selling shitty things - Victimized by deceptive credit practices, complicated consumer contracts, and lawsuits threatening wage garnishment - signing things that they have no idea what it is, longer hours and less pay Oct. 8 2013 09/10/2013 - Despite new laws and consumer affairs initiatives, these fraudulent practices are hardly extinct Predatory Lending and Subprime Loans - Predatory lending is the practice whereby a lender deceptively persuades a borrower to agree to abusive loan terms. – target people with poor/no credit history - Predatory lending is well-known in the United States but not perceived to be as prevalent in Canada. - Subprime lending is the process where loans are given to individuals who likely cannot get other loans and have a good chance of having difficulty repaying their loans. Legitimate Subprime Loans versus Predatory Illegitimate Loans - How can we draw the line between legitimate loans and predatory loans? Aleading U.S. Governmental Report states: 1. Loan flipping – hiking fees and interest rates – refinancing 2. Excessive fees and “packing” – combining unwanted items – paying more interest 3. Lending without regard to a borrower’s ability to repay; and – do they have the income to pay 4. Outright fraud. Predatory Lending and Seniors in Canada - Older adults are among the most frequent victims of predatory lending. - What factors might lead to the exploitation of seniors when it comes to subprime loans? - On a fixed income - 20% are falling near the poverty line Oct. 8 2013 09/10/2013 - Equity is already built up in their home Medical, Legal,Academic & Religious Crime - This is crime committed by professionals or semi-professionals. – high education and trainer, specific skills and knowledge, high autonomy ie doctors - Some who claim professional status but lack real autonomy – they’re own best interest over clients Medical Crime - Among the specifically illegal and unethical activities committed by physicians: - Fee splitting – split fee with whoever refers them - Taking or offering kickbacks – money you get from prescribing drugs - Price fixing - Unnecessary operations - False and fraudulent billing Medical Crime as a Violent Crime - The performance of unnecessary surgery is the single most disturbing of medical crimes – injury and pain, risk of compliance - The most common forms of unnecessary surgery are: - Removal of tonsils, hemorrhoids, appendixes and uteruses - Heart-related surgery – preventative surgery – prevent something that ‘might’happen - Caesarean section deliveries Oct. 8 2013 09/10/2013 Vulnerable Populations:An Easy Way Out? Are unnecessary C-Sections a medical crime? - It’s been argued that in NorthAmerica (and elsewhere), doctors are performing caesarean deliveries and inducing labour because it’s more convenient. – 15-20 minutes for the whole procedure, average labour is 12 hours C-Sections in the United States - One in three deliveries are C-sections - Rose 72% between 1996 and 2007 in Nevada alone. – continuing to increase - More than 1.4 million C-sections are performed in the United States each year. C-Sections in Canada - C-Sections almost doubled since the early 1990s. - One in four women give birth by caesarean in Canada. - World Health Organization recommends a C-Section rate between 5-15%. Canada’s average? - Women in rural areas more likely to have a natural birth Midterm Mixed format m/c 30ish definitions – 5- 8 – 2 marks each 1 or 2 sentences Short answer – 1 mandatory and one 1 out of 2 Can be point form 75% lecture 25% presentation th Oct. 15  2013  09/10/2013 The Corporation: Movie Oct. 15  2013  09/10/2013 - Corporations are like a family unit, work together for a common end… reaches everywhere like the telephone system - Corporations are artificial creations aiming to gather as much profit at anyone’s expense - Good example, dr. Frankenstein’s creation overpowering him What is a corporation? - Agroup of individuals working together to serve a variety of objectives mostly to gain legal returns for those who own the business. - Dominant role of corporations in our lives is a product of the past century - used to be a group of people charted by the state to preform a service for society - In both law and culture corporations were viewed as a subordinate entity which served common goon. - Civil was and industrial revolutions caused a spike in the growth of corporations - Corporate lawyers felt they needed to get some of the laws placed on corporations taken away so they could have more power and freedoms, said corporations were people and you couldn’t th deprive them of life liberty and the person (Used 14 amendment to get their way, originally it was to protect newly freed salves) ALegal Person: - The corporations are given the rights of persons but special kinds of persons, those who have no moral conscious - Designed by law to be concerned only for their sock holders and not their stake holders, example, consumers or workers - Mistake many make when thinking about corps is that they think they are like us, they really only have the bottom line… the maximum amount they can make - Problems with corps is the profit motivation, there is no such thing as enough with corporations - Corps are legally bound to put its bottom line above everything else, even the public well being Case histories: - Harm to workers; layoffs - Harm to workers; sweatshops - corporations become under successful when the wages in an area become to high, when people are no longer desperate so they pick up and go to the next desperate part of a country. Oct. 15  2013  09/10/2013 - Harm to human health; pollution - harm to biosphere; clear cuts The pathology of…. - Many characteristics of a corporation point towards a psychopaths traits - because majority of corporations are run by rich white men they look out for only the rich white men, decisions are not made based on the well being of the reality of what the world is like. Boundary Issues: - Corporations able to continue to make profit even during recessions. - believed that everything in the future will be owned by something. - Study done on nagging where parents asked to record every time their child nagged them for a good, used to help corporations figure out ways to get kids to nag their parents more (4/10 visits to chucky cheese wouldn’t have occurred if the child didn’t nag) Perception Management; - Corps don’t advertise products but they advertise a way of life and a story - Decades of propaganda teaching us to think and act in a certain way. - Perception management is a methodology to help products identify what they have what is holding them back from achieving higher and what they can do to do this. Helps corporations to have a voice. APrivate Celebration: - Triumph of the shrill: - By the time people head to bed they’ve come into contact with 8 or 9 real life situations of product placement Advancing the Front: Oct. 15  2013  09/10/2013 - GE tried to patent life, patent office said no GE appealed and overrules… corporations are not to own the patent to life, now you can patent anything in the world that is alive that is not a full fledged human being. Unsettling Accounts: - Example of the two writers for fox. -Fired for not wanting to lie on air, case was overturned Expansion Plan: - Privatizing water in Bolivia which is on the ground and also that of which falls from the sky - Transnational corporations have a history in supporting fascionist regimes. The rise in Europe (Mussolini and Hitler) were greatly possible because of these transnational corporations - Fanta orange created for the Nazi’s, coca cola’s way to keep making money during the Nazi Regime - IBM having their punch card system in all prison camps during Nazi Regime, punch cards printed by millions and profits were recovered by IBM just after the war. - Machines had to be services at least once a month meaning that IBM corporation from New York was flying in to service thes
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