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Corporate financial crime: social diagnosis and treatment

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  • Laura L. Hansen

Abstract

Purpose - The purpose of this viewpoint paper is to assist in finding solutions for the growing moral and social issues of financial crime plaguing corporations today. Design/methodology/approach - Methodology includes the synthesis of existing theories in economic sociology and criminology to “diagnose” and “treat” the existing flaws in corporate structures that have led to malaise and malfeasance. Theories include differential association, self‐control, and control balance, taking into consideration the characteristics of individuals and corporate structures. Findings - Findings suggest that corporate structure has to be critically scrutinized and changes implemented, including close examination of informal and formal communication and salary structures. Practical implications - This paper suggests concrete strategies and policy changes for regulators, corporate decision makers, and academics. Originality/value - The synthesis of existing theories in white collar malfeasance and crime provides a template to increase corporate social responsibility and promote policy/regulatory changes in the current economic climate.

Suggested Citation

  • Laura L. Hansen, 2009. "Corporate financial crime: social diagnosis and treatment," Journal of Financial Crime, Emerald Group Publishing Limited, vol. 16(1), pages 28-40, January.
    • Handle: RePEc:eme:jfcpps:13590790910924948
    DOI: 10.1108/13590790910924948
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