Organized Crime / Corporate Crime / Social Stratification BY Mike777K3 Organized Crime / Corporate Crime The difference between white collar crime and corporate crime are very slight. White collar crime is usually conducted by people and corporate crimes are conducted by an organization. White collar crime is usually conducted by higher classed individuals such as CEO’s or high level employee’s of an organization. The individuals utilize the organization in order to exploit the company’s investors or employee’s. A corporate crime utilizes the organization to break the laws.
The individuals who conduct white collar crimes usually work for high end organizations with access to investor funds. Corporate crimes can be committed by any corporation. The main difference between white collar crime and corporate crime would be that white collar crime is conducted by individuals who work for a company and corporate crime is conducted by the corporation in a whole. An example of white collar crime would be the Enron scandal that took place from 1985 until 2001. Enron was an energy company which utilized a complex business odel which confused even professional analysts and share holders.
Enron was formed in 1985 by Kenneth Lay. Kenneth Lay and a staff of executives used accounting loopholes and poor financial reporting in order to steal large sums of money from shareholders. The shareholders filed a $40 billion dollar lawsuit. Enron was a major white collar crime case that revolved around accounting fraud. Enron was investigated for five years. The five year investigation led to Jury convictions of top Enron officials who enriched themselves by cheating investors with sham ccounting. Enron sold energy to California for inflated rates.
The higher executives of the company manipulated its quarterly earning statements to keep Wall Street happy and its stock price afloat. Due to these actions employee’s lost their retirements, their health insurance, and their livelihoods. The Enron case was white collar crime due to the high level executives within the company illegally manipulating the company’s accounting for their own benefit. Corporate crimes tend to get away with their crimes. Usually the bigger orporations tend to avoid detection when conducting corporate crimes.
A good example of corporate crime would be Glaxo. Glaxo was a drug making corporation which illegally marketed drugs and withheld safety data from U. S. Regulators. Glaxo plead guilty to the criminal charges involving three drugs. The antidepressants which included Paxil, and Wellbutrin and the diabetes drug Avandia. The company plead guilty to the criminal charges involving the three drugs. Glaxo was a corporate crime due to the fact that they broke the law by selling faulty or dangerous products eliberately.
Social Stratification Social stratification is defined by the textbook as a system by which a society ranks categories of people in a hierarchy. The system is based on four important principles. The first principle is, Social stratification is a trait of society, not simply a reflection of individual differences. What this means is in society higher classed individuals are able to obtain positions, and items that lower class people could possibly never even get a chance to witness. This comes from many different ways. One way would be an scribed status of being born into a wealthy family.
Another way would be an achieved status which takes on wealth voluntarily, such as singers, and actors. These statuses become a master status, a status that has special importance for social identity, often shaping a person’s entire life. In the case of the titanic it saved many peoples lives. But Just as that social stratification can help save a life, it can also be a reason why their lives could end. A good example would be the World Trade Center on 9/1 1, a moment that immediately went down in the darker side of American History.
Certain people with an achieved status of working in a high position at the top of the World Trade Center were trapped at the top of the buildings due to the flames and impact site of the airplane. It was due to the master status of working at the very top of the building they were unable to escape the building which collapsed, causing their deaths. The second principle would be that Social stratification carries over from generation to generation. As mentioned previously an ascribed status of being wealthy is the result of how parents passed their social position on to their hildren.
Stratification is a trait of societies rather than individuals. The third principle is Social stratification is universal but variable, meaning it can be found everywhere. In the United States wealth is power, for example if a person is wealthy they can afford the most expensive lawyers to better their chances of not being incarcerated. The fourth principle of social stratification is universal but variable, meaning any system of inequality not only gives some people more than others but also defines it as being fair.
For example, a wealthy man who is a professional athlete an purchase a $500,000 dollar vehicle, cash after one night of working yet a man who works every day for 12-14 hour shifts would take up to 10 years of saving to even have a chance at purchasing the same vehicle and it is seen as completely fair to the people. Max Weber viewed Karl Max’s two class model as too simply. Max claimed that social stratification involves three distinct dimensions of inequality. Class, Status, and Power. The first dimension being economic inequality, the second being status, or social prestige, and the third being power.