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What Is The Anatomy Behind The Mind Of White Collar Crime

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On December second, 2001 Enron petitioned for liquidation prompting the downfall of one of the most degenerate companies in recent U.S. history. Top executives and board members sold their stock for gigantic profits knowing the pending result of its downfall would send its stock in a spiraling plummet. Leaving many employees and investors with massive losses. The massive fraud that Enron officials represented fell into the classification of White Collar Crime. To additionally examine the massive fraud that Enron officials carried out, I will explore the anatomy behind the mind of the white-collar criminal, its sociological concepts, and correlate between the research and the article on Enron. When looking at white-collar crime from a sociological …show more content…

The organizational culture of Enron, for instance was the conviction that its members must make the corporation thrive by boosting its profits and development in certain ways. This conviction was put vigorously frequently enough for it to become a custom of the organization. With Enron honing such loose business ethics, employees saw the acts of the higher officials as a typical method for business inside the company, prompting the regular routine of deceit inside the company. With such deceit running wild through the company, it enabled executives to set up sham partnerships to offload its obligation enabling it to be seen by its investors and the general population as largely effective. Is a single person inside the company was conferring fraud it would have been seen well before however while applying differential association theory to the mix, more employees learned of the strategies used to offload the debt and favored the reprobate acts for the law because of their need to secure individual and business

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Trust and consistent returns were characteristics that attributed to the success of Madoff’s operation. White collar crime is committed by educated people in positions of power, trust, and respectability (Ferrell, et al, 2013). Madoff was an educated individual and created an image of trustworthiness in his positions as Chairman of NASDAQ. He also operated a legal business, especially in the beginning that credited his success. Lewis outlines an incident with a longtime friend of Madoff and how trust initiated the investment.

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It is observed by researches and analysts that unethical business and accounting decision has took place in Enron Company especially CFO Jeffrey Skilling and CEO Ken Lay who played major roles in this scandal. Enron involved in business risks like fraud and the company failure happened when it entered into conservative transactions. The problem Enron faced was that they treated their loans as revenues yet it is not shown in the balance sheet, in other words, Enron did not treat them as current liabilities such as accounts payable so they did not show their creditors as liabilities, which had mislead their customers and investors. Because the company had taken the help from others in hiding a large amount of company debt (partnerships with various enterprises), it shows that unethical actions had been carry out. For example, Enron did

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