Corporate Crime Assignment
“In order to effectively punish and deter corporate crime, the law should impose criminal sanctions on individuals rather than on corporations.”
Corporate Crime refers to crimes committed by corporations, or individuals acting on behalf of companies (Tomasic, 1993). As corporate crime also involves top managers and employees of the company, it sometimes overlaps with white-collar crime (Grabosky & Braithwaite, 1987). There is no doubt that corporate crime has taken a heavy toll on Australian society, as proven by the Treasury’s 1985 Draft White Paper, which estimated that the revenue losses arising from tax fraud by corporations amounted to $ 3 billion per year (Grabosky & Braithwaite, …show more content…
Although he recognises that companies have organisational cultures which influence how individuals in the company behave, Valasquez postulates this as a result of the beliefs of the individuals themselves (Valasquez, 2003). Valasquez further argues that corporations are only said to act intentionally in an abstract sense, as its internal decision-making structure is influenced by the beliefs and purposes of individuals in the company (Valasquez 2003). Lastly, Valasquez argues that corporations cannot be agents as it is not a separate entity which acts distinctly from its members (Valasquez, 2003). Valasquez’s arguments seems to provide a more solid view of corporations being unpunishable due to a lack of moral responsibility, compared to French’s arguments.
Critics of criminal liability also argue that it is unnecessary, because civil liability is sufficent and more efficient. Additonally, the only form of sanctions that can be imposed on corporations relate to monetary sanctions, since corporations cannot be sent to jail; similar to monetary damages awarded for civil liability. According to Khanna (1996), there are four main differences between corporate criminal liability and civil liabiliy. These include corporate criminal liability acting as a severe social sanction by affecting the reputation of the company, having stronger enforcement instruments,