RiverRiver: Evans Creek. It traverses Sullivan County, Tennessee, : Evans Creek. It traverses Sullivan County, Tennessee, end eventually discharges into the Holston River, the end eventually discharges into the Holston River, the principal source of drinking water for Kingsport, Tennesseeprincipal source of drinking water for Kingsport, TennesseeFirmFirm: Davis Pipe. The company manufactures and fabricates : Davis Pipe. The company manufactures and fabricates stainless steel, alloy pipes, and fittings.stainless steel, alloy pipes, and fittings.

The company processes generate SPL, a hazardous waste The company processes generate SPL, a hazardous waste that contains lead, nickel, chromium, and acids.that contains lead, nickel, chromium, and acids.Environmental law and regulations require that SPL be Environmental law and regulations require that SPL be stored in holding tanks and disposed of properly.stored in holding tanks and disposed of properly.Davis Pipe used another method: it periodically pumped the Davis Pipe used another method: it periodically pumped the toxic waste directly into Evans Creek.toxic waste directly into Evans Creek.

Large fish kills resulted.Large fish kills resulted.

FBI investigation followed.FBI investigation followed.

Davis Pipe and two high-level managers were convicted of Davis Pipe and two high-level managers were convicted of violating the Clean Water Act. The individuals were put on violating the Clean Water Act. The individuals were put on probation and paid fines while Davis Pipes paid a $400.000 probation and paid fines while Davis Pipes paid a $400.000 fine and $1.8 million in clean-up expensesfine and $1.8 million in clean-up expenses

Firm: Imperial Food ProductsFirm: Imperial Food ProductsSeptember 3, 1991: a fire swept through the Imperial September 3, 1991: a fire swept through the Imperial Food Products chicken processing plant in Hamlet, North Food Products chicken processing plant in Hamlet, North Carolina, trapping and killing twenty-five employees and Carolina, trapping and killing twenty-five employees and injuring an additional forty.injuring an additional forty.

Unsafe working conditionsUnsafe working conditions::Plant equipment was agedPlant equipment was agedMaintenance personnel were kept busy repairing the Maintenance personnel were kept busy repairing the equipmentequipmentPlant owners had padlocked exit doors, ostensibly Plant owners had padlocked exit doors, ostensibly to prevent pilferage of meat by employeesto prevent pilferage of meat by employees

Employees were trapped. After the accident, Employees were trapped. After the accident, photographs of the interior walls showed bloody photographs of the interior walls showed bloody hand prints where they tried frantically and hand prints where they tried frantically and desperately to escape. Subsequent investigation desperately to escape. Subsequent investigation showed that nearly all the fatalities resulted from showed that nearly all the fatalities resulted from smoke inhalationsmoke inhalation

Safety precautions were minimal to non existent.Safety precautions were minimal to non existent.

The plant did not have automatic shut-off technology, which would The plant did not have automatic shut-off technology, which would have stopped the flow of flammable liquids once the fire beganhave stopped the flow of flammable liquids once the fire beganThere was only one fire extinguisher near the chicken fryer, but it There was only one fire extinguisher near the chicken fryer, but it was not adequate to control the inferno that developed.was not adequate to control the inferno that developed.

A witness said that locking the exit doors represented A witness said that locking the exit doors represented the most the most callous disregard for safety and health, particularly since locked fire callous disregard for safety and health, particularly since locked fire exits are so fundamentally to basic common sense safety principles exits are so fundamentally to basic common sense safety principles … You don’t need to lock a door from the outside… You don’t need to lock a door from the outside to maintain to maintain security. For a few dollars cost, an inside push bar lock would have security. For a few dollars cost, an inside push bar lock would have provided security and safety. For a few dollars cost. We all went provided security and safety. For a few dollars cost. We all went through fire drills in our elementary and high schools. Everyone in through fire drills in our elementary and high schools. Everyone in this room is aware that you don’t block egress through fire exits this room is aware that you don’t block egress through fire exits (U.S. Congress, House of Representatives, 1991:139).(U.S. Congress, House of Representatives, 1991:139).

The State of North Carolina fined the company $ 808.150, and the The State of North Carolina fined the company $ 808.150, and the plant’s owner pleaded guilty to involuntary manslaughter. He was plant’s owner pleaded guilty to involuntary manslaughter. He was sentenced to nearly twenty years’ imprisonment. As part of the plea sentenced to nearly twenty years’ imprisonment. As part of the plea agreement, charges against his 29 year-old son and the 56 year –old agreement, charges against his 29 year-old son and the 56 year –old plant manager were dropped (Los Angeles Times, 1992)plant manager were dropped (Los Angeles Times, 1992)

Firm: Arthur Andersen. Founded in 1913, it was one Firm: Arthur Andersen. Founded in 1913, it was one of the largest accounting firms in the world. For of the largest accounting firms in the world. For decades after its founding, it was also an exemplar of decades after its founding, it was also an exemplar of ethical accounting practices and took pride in its ethical accounting practices and took pride in its reputation as suchreputation as such

By the 1960s Andersen created a consulting division By the 1960s Andersen created a consulting division that worked with corporate clients to adopt and use that worked with corporate clients to adopt and use computers and other technological developments. In computers and other technological developments. In time the consulting division also began advising time the consulting division also began advising clients on business strategy and risk management.clients on business strategy and risk management.

Accountants hired to audit a company’s books Accountants hired to audit a company’s books were also expected to help persuade their clients were also expected to help persuade their clients to use the firm’s consultants as well.to use the firm’s consultants as well.

Andersen figured in more than one high profile Andersen figured in more than one high profile corporate criminal scandal of the 1990scorporate criminal scandal of the 1990s

Enron Corporation was one of Andersen’s largest and most Enron Corporation was one of Andersen’s largest and most profitable clients. David Duncan, the auditor responsible for profitable clients. David Duncan, the auditor responsible for Enron rapidly became an influential figure at Andersen.Enron rapidly became an influential figure at Andersen.

When Enron launched the series of fraudWhen Enron launched the series of frauduulent and criminal lent and criminal debt hiding structures that led to its downfall, Duncan and his debt hiding structures that led to its downfall, Duncan and his employer signed off.employer signed off.

When it appeared almost certain that Enron’s transactions When it appeared almost certain that Enron’s transactions would face close and critical external scrutiny, attorney at would face close and critical external scrutiny, attorney at Andersen recommended that documents pertaining to its Andersen recommended that documents pertaining to its dealings with Enron be altered or shredded.dealings with Enron be altered or shredded.

Thousands of pages of material related to its dealings with Thousands of pages of material related to its dealings with Enron and its accounting work were destroyed.Enron and its accounting work were destroyed.

A few months after Enron imploded, disclosures of similar A few months after Enron imploded, disclosures of similar accounting crimes occured at WorldCom, another Andersen accounting crimes occured at WorldCom, another Andersen client and one of the world’s largest supplierclient and one of the world’s largest supplier

of the telephone and wireless servicesof the telephone and wireless services

After Enron’s collapse, David Duncan and other After Enron’s collapse, David Duncan and other executives pleaded guilty to criminal charges and executives pleaded guilty to criminal charges and agreed to cooperate with the government in agreed to cooperate with the government in exchange for a light sentence and immunity from exchange for a light sentence and immunity from prosecution in other cases.prosecution in other cases.

On June 15, 2002, Andersen was found guilty in a On June 15, 2002, Andersen was found guilty in a Houston, Texas, courtroom, of destroying evidence Houston, Texas, courtroom, of destroying evidence in the Enron case. The firm promptly charged that in the Enron case. The firm promptly charged that the verdict was “wrong” and represented only a the verdict was “wrong” and represented only a “technical violation” of law, but in October 2002, “technical violation” of law, but in October 2002, Andersen was sentenced to five years’ probation and Andersen was sentenced to five years’ probation and fined $500.000. In May 2005 the U.S. Supreme fined $500.000. In May 2005 the U.S. Supreme Court overturned the conviction. Many of Court overturned the conviction. Many of Andersen’s former partners are targets of lawsuits Andersen’s former partners are targets of lawsuits from shareholders left with near-worthless stock.from shareholders left with near-worthless stock.

Andersen stopped auditing Andersen stopped auditing public companies after 89 years public companies after 89 years in the business and cut its in the business and cut its workforworkforcce from 28.000 to 1.000. e from 28.000 to 1.000. It was a catastrophic fall for a It was a catastrophic fall for a firm that once was a trusted firm that once was a trusted member of the “Big five” member of the “Big five” accounting firms with offices accounting firms with offices throughout the world.throughout the world.

Criminal opportunitiesCriminal opportunities

Criminal opportunities Criminal opportunities are arrangements or are arrangements or situations that offer situations that offer potential for criminal potential for criminal reward with little reward with little apparent risk of apparent risk of detection or penaltydetection or penalty (Coleman (Coleman

1987)1987)

White collar crime – the White collar crime – the criminally predisposedcriminally predisposed

Tempted individuals possess qualities Tempted individuals possess qualities or experiences that make them more or experiences that make them more likely than peers who lack these likely than peers who lack these distinctions to weigh the exploitation distinctions to weigh the exploitation of lure.of lure.

The supply of predisposed The supply of predisposed organizations and tempted individuals organizations and tempted individuals varies temporally and spatiallyvaries temporally and spatially

The most striking revolution of the The most striking revolution of the twentieth century was the rapid twentieth century was the rapid expansion of the population of expansion of the population of organizations. In the United States organizations. In the United States the number the number ggrew fivefold between rew fivefold between 1917 and 1969, and in the past 1917 and 1969, and in the past three decades alone it tripled. As a three decades alone it tripled. As a result the population of profit, non-result the population of profit, non-profit and governmental profit and governmental organizations in the United States organizations in the United States rivalrivalss in number the population of in number the population of individualsindividuals

Characteristics of individuals sentenced for federal Characteristics of individuals sentenced for federal street crimes and white collar crimes, United street crimes and white collar crimes, United

States, 1995-2002States, 1995-2002CharacteristicsCharacteristics Street offendersStreet offenders white collar white collar offendersoffenders

Race (percent AfricanRace (percent AfricanAmerican and Hispanic)American and Hispanic) 48.548.5 32.332.3Gender (percent male)Gender (percent male) 92.892.8 72.772.7EducationEducationLess than high schoolLess than high school 38.638.6 17.117.1High school graduateHigh school graduate 39.739.7 28.728.7Some collegeSome college 18.418.4 30.230.2College graduateCollege graduate 2.82.8 19.519.5AgeAgeUnder 21Under 21 10.410.4 1.61.621-3021-30 41.841.8 24.624.631-4031-40 29.129.1 29.429.441-5041-50 15.715.7 25025050+50+ 31.831.8 44.244.2Average ageAverage age 31.831.8 44.244.2Average number of casesAverage number of casesAnnuallyAnnually 2.6002.600 8.2058.205

Decades of research shows that Decades of research shows that street offenders street offenders disproportionately hail from disproportionately hail from poor and working class poor and working class backgrounds. backgrounds.

The work performed by the The work performed by the working classes is unlike work working classes is unlike work performed by those situated performed by those situated higher in the class structurehigher in the class structure

WorkWork

Much of the work done by working class Much of the work done by working class citizens is physically hazardous or mind citizens is physically hazardous or mind numbing. Normally they work under the direct numbing. Normally they work under the direct supervision of and on schedules constructed by supervision of and on schedules constructed by others.others.

Subordination is one of the most important Subordination is one of the most important distinguishing characteristics of working-class distinguishing characteristics of working-class employment.employment.

Most workers share a common status, and Most workers share a common status, and prospects for upward mobility are limited in prospects for upward mobility are limited in any case.any case.

Not surprisingly also, in their work Not surprisingly also, in their work worlds those who work too rapidly or worlds those who work too rapidly or maintain distance from co-workers in maintain distance from co-workers in hopes of being noticed by superiors hopes of being noticed by superiors are derided as “rate busters” or are derided as “rate busters” or “company men“company men””..

One does not want to give the One does not want to give the impression of being too eager or of impression of being too eager or of trying too hard. (Dunk, 1991) trying too hard. (Dunk, 1991)

““In the factories I’ve worked in, if you In the factories I’ve worked in, if you talk down to another worker you can talk down to another worker you can expect to be “punched out”. The basic expect to be “punched out”. The basic operating procedure of academia and operating procedure of academia and graduate school …..are based on graduate school …..are based on competitive game playing, which in competitive game playing, which in working class setting would make you working class setting would make you an outcast…. In my previous work an outcast…. In my previous work environments this type of behaviour environments this type of behaviour had specific names: “brown nosing” had specific names: “brown nosing” and so on ….. The modus operandi and so on ….. The modus operandi among middle-class careerists is based among middle-class careerists is based on competition.” (Langston 1993)on competition.” (Langston 1993)

CompetitionCompetition

In competitive cultures, people generally In competitive cultures, people generally evaluate personal success in terms of evaluate personal success in terms of wealth and material possessions. wealth and material possessions. Competition need not be economic, Competition need not be economic, however. Establishing or maintaining however. Establishing or maintaining respect by peers for exceptional respect by peers for exceptional achievement is priority for manyachievement is priority for many.. HHumans compete for attention from umans compete for attention from superiors, assignments, and career superiors, assignments, and career advancement.advancement.

At each new level of my career, I had pushed At each new level of my career, I had pushed my goals higher. When I was an associate, I my goals higher. When I was an associate, I wanted to be a vice president. When I became wanted to be a vice president. When I became a vice president, I wanted to be a senior vice a vice president, I wanted to be a senior vice president …. When I was earning $20.000 a president …. When I was earning $20.000 a year, I thought, I can make $ 100.000 ….. year, I thought, I can make $ 100.000 ….. When I was making a $ 1 million, I thought I When I was making a $ 1 million, I thought I can make $ 3 million. There was always can make $ 3 million. There was always somebody one rung higher on the ladder, and I somebody one rung higher on the ladder, and I could never stop wondering: is he really twice could never stop wondering: is he really twice as good as I am? Ambition eclipsed rationalas good as I am? Ambition eclipsed rationalitity. y. I was unable to find fulfilment in realistic limits I was unable to find fulfilment in realistic limits … The hours grew longer, the numbers grew … The hours grew longer, the numbers grew bigger, the stakes grew more critical, the fire bigger, the stakes grew more critical, the fire grew even hottergrew even hotter

I think I was arrogant enough at the I think I was arrogant enough at the time to believe that I could cut corners. time to believe that I could cut corners. Not care about details that were going Not care about details that were going on and not think about consequences. on and not think about consequences. One of my great faults is – I refused to One of my great faults is – I refused to deal with everyday details that people deal with everyday details that people have to deal with to make sure that have to deal with to make sure that mistakes aren’t made. And I think, in mistakes aren’t made. And I think, in that way, there may have been that way, there may have been arrogance where I didn’t have to deal arrogance where I didn’t have to deal with details – that these details were with details – that these details were meant for other people, not for me meant for other people, not for me (Waksal, 2003)(Waksal, 2003)

EnronEnron

At Enron corporation management policies At Enron corporation management policies required each year that employees be required each year that employees be evaluated on a forced curve so that 15 evaluated on a forced curve so that 15 percent would receive performance ratings of percent would receive performance ratings of unacceptable (Cruver, 2002). The pervasive unacceptable (Cruver, 2002). The pervasive insecurity generated in competitive insecurity generated in competitive environments like this provides powerful environments like this provides powerful motivational pushes towards misconduct.motivational pushes towards misconduct.

Desire to be the former is fuelled in part by Desire to be the former is fuelled in part by fear of becoming the latterfear of becoming the latter

Suffice it to say any annual ranking that Suffice it to say any annual ranking that plummeted you lower than your plummeted you lower than your previous assessment gave many people previous assessment gave many people a reason to start a course of a reason to start a course of antidepressants or switch from beer to antidepressants or switch from beer to Bourbon. A reduction in your ranking Bourbon. A reduction in your ranking status would affect your salary, your status would affect your salary, your self-esteem, your standing among your self-esteem, your standing among your peers, and, worse of all, your bonus. peers, and, worse of all, your bonus. Once wounded with an “issues” ranking, Once wounded with an “issues” ranking, like a stricken animal in a herd, other like a stricken animal in a herd, other employees would begin to shun you as employees would begin to shun you as you might draw lions” (Brewer, 2002)you might draw lions” (Brewer, 2002)

References:References: Katherine S. Williams, Textbook on Criminology, Katherine S. Williams, Textbook on Criminology,

Oxford University Press, 2004Oxford University Press, 2004 Edwin H. Sutherland, White-Collar-Criminality, Edwin H. Sutherland, White-Collar-Criminality,

American Sociological Review, 1940American Sociological Review, 1940 Neal Shover, Andy Hpchstetler,Choosing White Collar Neal Shover, Andy Hpchstetler,Choosing White Collar

CrimeCrime