CJ 325 [Workplace]

Workplace DevianceWorkplace DevianceWhite Collar CrimeWhite Collar Crime

Kelly Cheeseman DialKelly Cheeseman Dial

AJ 325AJ 325

Organizational DevianceOrganizational Deviance

DefinitionDefinition Crime committed in working lifeCrime committed in working life

How does this differ from WCCHow does this differ from WCC Harmful but does not always technically break a lawHarmful but does not always technically break a law Involves the entire org., not just an individualInvolves the entire org., not just an individual

Org. DevianceOrg. Deviance

Breaks social normsBreaks social norms Members are socialized to be deviantMembers are socialized to be deviant Mgmt. aware, permits, or encouragesMgmt. aware, permits, or encourages Org. norms support devianceOrg. norms support deviance

CausesCauses Perception of profits fallingPerception of profits falling Lack of regulationLack of regulation decentralizationdecentralization

Retail DevianceRetail Deviance

Misuse of discountMisuse of discount Taken store merchandiseTaken store merchandise Get paid for more hoursGet paid for more hours Under-ring purchaseUnder-ring purchase Borrow/take $$Borrow/take $$ Extra reimbursementExtra reimbursement Damage merc. to buy itDamage merc. to buy it

TotalTotal

28.9%28.9%6.6%6.6%5.8%5.8%3.2%3.2%2.7%2.7%2.1%2.1%1.3%1.3%

35%35%

Hospital Sector DevianceHospital Sector Deviance

Take Hospital ItemsTake Hospital Items Take meds. for patientsTake meds. for patients Get paid more hoursGet paid more hours Take equip./toolsTake equip./tools Extra re-imbursementExtra re-imbursement

TotalTotal

27.327.3

7.87.8

6.16.1

4.74.7

1.11.1

33.333.3

Manufacturing devianceManufacturing deviance

Take raw materialsTake raw materials Get paid more hoursGet paid more hours Take company Take company

tools/equip.tools/equip. Extra re-imbursementExtra re-imbursement Take finished prod.Take finished prod. Take precious metalsTake precious metals

TotalTotal

14.314.39.29.28.78.7

7.77.73.13.11.81.8

28.428.4

3 Sectors production deviance3 Sectors production deviance

RR HH MM

Long lunch breakLong lunch break 5656 5757 7272

Leave early/arrive lateLeave early/arrive late 3232 2929 4444

Use sick when not sickUse sick when not sick 1717 3333 3838

Slow/sloppy workSlow/sloppy work 1515 1111 33

Work alc./drugsWork alc./drugs 88 22 33

Group ProjectGroup ProjectAssessment of workplace deviance in other Assessment of workplace deviance in other

environmentsenvironments

MilitaryMilitary PolicePolice UniversityUniversity Business OfficeBusiness Office WaitersWaiters Nursing homesNursing homes Your work environmentYour work environment

Government DevianceGovernment Deviance

Abuse of power of govt. officialsAbuse of power of govt. officials BribesBribes KickbacksKickbacks Mismanagement of public fundsMismanagement of public funds Privilege of sending free mailPrivilege of sending free mail

Government DevianceGovernment Deviance

CampaignsCampaigns Stealing competitor adsStealing competitor ads Rumor/innuendo (smear campaign)Rumor/innuendo (smear campaign) Campaign finance abusesCampaign finance abuses

who is contributing?who is contributing? How much?How much?

TDC – Andy CollinsTDC – Andy Collins

Vita-proVita-pro Contracted with Vita-pro to provide for TDCContracted with Vita-pro to provide for TDC Soy based meat substituteSoy based meat substitute Contract was for 5 years 33.7 millionContract was for 5 years 33.7 million When Collins retired went to work for Vita-proWhen Collins retired went to work for Vita-pro $1,000 a day consultant$1,000 a day consultant Broke contract laws etc.Broke contract laws etc.

White Collar CrimeWhite Collar Crime

DefinitionDefinition Occupationally related, carried out by a respected upper class Occupationally related, carried out by a respected upper class

individualindividual Sutherland (1949)Sutherland (1949)

Difference between white v. blueDifference between white v. blue SkillSkill SophisticationSophistication PowerPower InfluenceInfluence RespectabilityRespectability Attitude in criminal justice communityAttitude in criminal justice community

08/17/10

Ford Pinto Case: A Classic Ford Pinto Case: A Classic Example of “WCC”Example of “WCC”

August 10, 1978: 3 teenage girls had their Pinto August 10, 1978: 3 teenage girls had their Pinto struck in the rear by a van.struck in the rear by a van.

Car blew-up (Van going less 30 mph) Car blew-up (Van going less 30 mph)

Ford put the gas tank in the in the rear of the Ford put the gas tank in the in the rear of the PintoPinto

Had already paid ($) civil suitsHad already paid ($) civil suits

The Ford Pinto Fuel TankThe Ford Pinto Fuel Tank

““Safety Doesn’t Sell”Safety Doesn’t Sell” $11 per car to fix the $11 per car to fix the

ProblemProblem $5.08 to add rubber $5.08 to add rubber

bladder to fuel tank to bladder to fuel tank to eliminate problemeliminate problem

Design change would Design change would have decreased trunk have decreased trunk spacespace

08/17/10

Mark Dowie (1977) “Pinto Mark Dowie (1977) “Pinto Madness”Madness”

Article that alleged that Ford had knowledge of Article that alleged that Ford had knowledge of Pinto’s defects.Pinto’s defects.

Alleged that Ford opted NOT to fix.Alleged that Ford opted NOT to fix.

Ford endangered its victims not inadvertently Ford endangered its victims not inadvertently but intentionallybut intentionally

Executives knew that hundreds of people would Executives knew that hundreds of people would needlessly die.needlessly die.

08/17/10

Evolution of Ford PintoEvolution of Ford Pinto Strong competition for the lucrative small car Strong competition for the lucrative small car

market.market. IE: Volkswagen (VW Beetle)IE: Volkswagen (VW Beetle) Discovered defect in pre-production crash tests Discovered defect in pre-production crash tests

(ignored)(ignored) Ford lobbied against governmental safety Ford lobbied against governmental safety

standardsstandards

08/17/10

““Smoking-gun memo”Smoking-gun memo” Calculated a life as $200,000 and a burn injury as Calculated a life as $200,000 and a burn injury as

$67,000.$67,000.

Ford executives decided it would be cheaper to Ford executives decided it would be cheaper to pay civil suits than to recall the Pinto.pay civil suits than to recall the Pinto.

08/17/10

Crash-tests of the PintoCrash-tests of the Pinto 40 different tests conducted at over 25 40 different tests conducted at over 25

mph.mph.

Every test resulted in a ruptured fuel Every test resulted in a ruptured fuel tank.tank.

Lee Iacocca, Pres. Ford Lee Iacocca, Pres. Ford

08/17/10

““Smoking-gun memo”Smoking-gun memo” Ford would not make an $11 dollar Ford would not make an $11 dollar

improvementimprovement

““Cheaper” to pay liability than to modify the Cheaper” to pay liability than to modify the fuel tankfuel tank

This would have prevented 180 fiery deaths a This would have prevented 180 fiery deaths a year (Mark Dowie)year (Mark Dowie)

Ford had knowledge of this defectFord had knowledge of this defect

08/17/10

The Ford CaseThe Ford Case Ford Motor Case was the 4th largest company in Ford Motor Case was the 4th largest company in

the world.the world. Hired jury expert Hans ZeiselHired jury expert Hans Zeisel Secured a long-time friend of the judge as co-Secured a long-time friend of the judge as co-

counselcounsel Elkhart County had very limited resources Elkhart County had very limited resources

(volunteers)(volunteers)

08/17/10

The Ford CaseThe Ford Case Ford may have spent anywhere from $1.5 Ford may have spent anywhere from $1.5

million to $2 million on its defense.million to $2 million on its defense.

Only 5% of prosecutor’s documents were Only 5% of prosecutor’s documents were admitted into evidence admitted into evidence

““Smoking gun memo” NOT admittedSmoking gun memo” NOT admitted Co-counsel, good friend of judgeCo-counsel, good friend of judge

08/17/10

Recall of the PintoRecall of the Pinto Recalled 1.4 million 1971-1976 Ford Pintos Recalled 1.4 million 1971-1976 Ford Pintos

(Replaced by Escort)(Replaced by Escort)

Over 100 lawsuits against FordOver 100 lawsuits against Ford

Ford paid out millions of dollarsFord paid out millions of dollars

At least fifty-nine people burned to death from At least fifty-nine people burned to death from Pinto Pinto

08/17/10

Late 1990’s - 2000Late 1990’s - 2000 Ford Explorer and Firestone tires.Ford Explorer and Firestone tires.

More than 150 deaths around the world.More than 150 deaths around the world.

Some say Ford and Firestone knew of at least 35 Some say Ford and Firestone knew of at least 35 deaths before federal gov’t launched its probe in deaths before federal gov’t launched its probe in 2000.2000.

08/17/10

What Does the Ford Case Tell What Does the Ford Case Tell Us...Us...

White-collar crime can kill!White-collar crime can kill! Public apathy towards “WCC”Public apathy towards “WCC” Shows that conservative jurors look more Shows that conservative jurors look more

favorably on the rights of the defendant.favorably on the rights of the defendant. Illustrates the effectiveness of the scientific Illustrates the effectiveness of the scientific

selection of jurors.selection of jurors.

Pharmaceutical recalls/problem Pharmaceutical recalls/problem drugsdrugs

Vioxx® Vioxx® MerckMerck known to cause heartburn, nausea, diarrhea, upper known to cause heartburn, nausea, diarrhea, upper

respiratory tract infection, swelling of the lower respiratory tract infection, swelling of the lower extremities, high blood pressure, itching, stomach extremities, high blood pressure, itching, stomach ulcers or bleeding, fatigue, vomiting, dark urine, and ulcers or bleeding, fatigue, vomiting, dark urine, and black stools. Additionally, recent studies have also black stools. Additionally, recent studies have also linked Vioxx® to an increased risk of heart attack linked Vioxx® to an increased risk of heart attack and stroke. and stroke.


Bextra®Bextra® Like Vioxx®, Bextra® is a nonsteroidal anti-Like Vioxx®, Bextra® is a nonsteroidal anti-

inflammatory drug (NSAID) designed to alleviate the inflammatory drug (NSAID) designed to alleviate the symptoms of rheumatoid arthritis, including joint symptoms of rheumatoid arthritis, including joint inflammation and swelling. The drug, classified as a inflammation and swelling. The drug, classified as a COX 2 inhibitor, reportedly prevents the stomach COX 2 inhibitor, reportedly prevents the stomach ulcers and gastrointestinal bleeding believed to be ulcers and gastrointestinal bleeding believed to be caused by other NSAIDs. However, some research caused by other NSAIDs. However, some research shows that like Vioxx®, Bextra® can cause a number shows that like Vioxx®, Bextra® can cause a number of serious side effects, from stomach bleeding to upper of serious side effects, from stomach bleeding to upper respiratory infection.respiratory infection.


Zyprexa® Zyprexa® In 1996, the FDA approved Zyprexa® as a treatment In 1996, the FDA approved Zyprexa® as a treatment

for bipolar disorder, schizophrenia, and other psychotic for bipolar disorder, schizophrenia, and other psychotic illnesses. It effectively controls the hallucinations, illnesses. It effectively controls the hallucinations, delusions, withdrawal, and various symptoms typically delusions, withdrawal, and various symptoms typically associated with such conditions associated with such conditions

researchers linked Zyprexa®, now deemed a potentially researchers linked Zyprexa®, now deemed a potentially defective drug, to diabetes, diabetic ketoacidosis, defective drug, to diabetes, diabetic ketoacidosis, hyperglycemia, pancreatitis, and diabetes-induced heart hyperglycemia, pancreatitis, and diabetes-induced heart attack or coma. Patients under age 54 - especially attack or coma. Patients under age 54 - especially adolescents - are at highest risk. adolescents - are at highest risk.


Crestor® Crestor® designed to lower cholesterol levels by halting designed to lower cholesterol levels by halting

production of a certain enzyme in the liver. The production of a certain enzyme in the liver. The drug has been linked to a slew of serious health drug has been linked to a slew of serious health problems, ranging from muscle weakness and problems, ranging from muscle weakness and asthenia to kidney damage and total renal failure. asthenia to kidney damage and total renal failure. This possibly defective drug is particularly This possibly defective drug is particularly dangerous to pregnant or nursing mothers, dangerous to pregnant or nursing mothers, although it is not on the list of drug recalls.although it is not on the list of drug recalls.


Prempro® Prempro® A hormone replacement therapy (HRT) drug A hormone replacement therapy (HRT) drug

prescribed to treat menopause symptoms, Prempro® prescribed to treat menopause symptoms, Prempro® was recently a subject of a drug recall. It was pulled was recently a subject of a drug recall. It was pulled from shelves in 2002 after the Women' s Health from shelves in 2002 after the Women' s Health Initiative Study found that it increased women' s risk of Initiative Study found that it increased women' s risk of stroke by 41 percent, cardiovascular disease by 29 stroke by 41 percent, cardiovascular disease by 29 percent, and breast cancer by 26 percent. Warnings percent, and breast cancer by 26 percent. Warnings from the American Heart Association and the Journal from the American Heart Association and the Journal of the American Medical Association also prompted the of the American Medical Association also prompted the recall. recall.


Accutane® Accutane® Once the most often-prescribed acne medication on the Once the most often-prescribed acne medication on the

U.S. market, Accutane® is now considered a defective U.S. market, Accutane® is now considered a defective drug, having been associated with depression, suicide, drug, having been associated with depression, suicide, psychosis, and birth defects, namely mental retardation psychosis, and birth defects, namely mental retardation and physical deformities. Accutane® is still available by and physical deformities. Accutane® is still available by prescription, although women who are at risk for prescription, although women who are at risk for becoming pregnant while on the drug must sign a becoming pregnant while on the drug must sign a waiver that informs them of the risk before they are waiver that informs them of the risk before they are given a prescription. given a prescription.


Oxycontin® Oxycontin® Oxycontin® most recently made headlines when radio Oxycontin® most recently made headlines when radio

announcer Rush Limbaugh admitted his addiction to announcer Rush Limbaugh admitted his addiction to the powerful, heroin-like painkiller in 2003. The opiate, the powerful, heroin-like painkiller in 2003. The opiate, which is highly addictive for both legitimate and which is highly addictive for both legitimate and illegitimate users, is covered by most insurance plans, illegitimate users, is covered by most insurance plans, thereby making it significantly cheaper than illegal thereby making it significantly cheaper than illegal drugs- so cheap, in fact, that Oxycontin® has been drugs- so cheap, in fact, that Oxycontin® has been nicknamed “hillbilly heroin” and “poor man' s heroin” nicknamed “hillbilly heroin” and “poor man' s heroin” on the street. on the street.


Rezulin® Rezulin® Rezulin® is an anti-hyperglycemic drug used to treat Type II Rezulin® is an anti-hyperglycemic drug used to treat Type II

diabetes. While it is not an insulin substitute, Rezulin® helps the diabetes. While it is not an insulin substitute, Rezulin® helps the body better use the insulin it does produce. But this isn't without body better use the insulin it does produce. But this isn't without consequence - Rezulin® is rather dangerous for many patients. consequence - Rezulin® is rather dangerous for many patients. In fact, since its approval by the FDA in 1997 (the same year In fact, since its approval by the FDA in 1997 (the same year Great Britain withdrew the drug from its market), Rezulin has Great Britain withdrew the drug from its market), Rezulin has consistently been linked to heart failure, thickening in the left consistently been linked to heart failure, thickening in the left ventricular wall of the heart, severe liver damage, liver failure, an ventricular wall of the heart, severe liver damage, liver failure, an increased demand for liver treatments, and at least 63 deaths. increased demand for liver treatments, and at least 63 deaths. Rezulin® was finally yanked from shelves in March 2000, but for Rezulin® was finally yanked from shelves in March 2000, but for many, the damage was already done. many, the damage was already done.


Fen-Phen Fen-Phen A combination of fenfluramine (Podimin), phentermine A combination of fenfluramine (Podimin), phentermine

(Ionamin), and dexfenfluramine, Fen-Phen, a defective (Ionamin), and dexfenfluramine, Fen-Phen, a defective drug, was used weight loss drug used by at least 6 drug, was used weight loss drug used by at least 6 million Americans until it was recalled in 1997 after million Americans until it was recalled in 1997 after reports linked it to heart valve disease, primary reports linked it to heart valve disease, primary pulmonary hypertension (PHH), heart failure, lung pulmonary hypertension (PHH), heart failure, lung failure, aortic and mitral heart valve damage failure, aortic and mitral heart valve damage (regurgitation), and other serous conditions. (regurgitation), and other serous conditions.


Paxil® Paxil® Paxil® is believed to be very addictive, and many users Paxil® is believed to be very addictive, and many users

report severe withdrawal symptoms after discontinuing report severe withdrawal symptoms after discontinuing use. Some experts even link Paxil® to an increased use. Some experts even link Paxil® to an increased suicide risk. GlaxoSmithKline Corporation, the suicide risk. GlaxoSmithKline Corporation, the manufacturer of Paxil®, has been accused of manufacturer of Paxil®, has been accused of misleading the public and the medical profession by misleading the public and the medical profession by downplaying side effects of the drug. In response, many downplaying side effects of the drug. In response, many victims have banded together and filed class action victims have banded together and filed class action lawsuits against Glaxo Smithkline Corporation. lawsuits against Glaxo Smithkline Corporation.


Celebrex® Celebrex® Celebrex® is a non-steroidal, anti-inflammatory COX-2 Celebrex® is a non-steroidal, anti-inflammatory COX-2

inhibitor drug intended to treat joint inflammation and inhibitor drug intended to treat joint inflammation and arthritis pain - but, like Vioxx®, it has been deemed arthritis pain - but, like Vioxx®, it has been deemed dangerous: Celebrex® has been linked to at least 10 dangerous: Celebrex® has been linked to at least 10 deaths, 11 cases of gastrointestinal bleeding that deaths, 11 cases of gastrointestinal bleeding that required hospitalization, and an increased risk of required hospitalization, and an increased risk of stomach ulcers. There is also some evidence that taking stomach ulcers. There is also some evidence that taking Celebrex® can increase or double users' risk of blood Celebrex® can increase or double users' risk of blood clots, heart attack, and stroke.clots, heart attack, and stroke.

Deviance Against EnvironmentDeviance Against Environment

This is prominent in American BusinessThis is prominent in American Business Why?Why?

Failure to insure emission controlFailure to insure emission control 3 mile Island3 mile Island ChernobylChernobyl Illegal dumpingIllegal dumping

Love CanalLove Canal

Anti-Trust ViolationsAnti-Trust Violations

MicrosoftMicrosoft Monopolizing office suite marketMonopolizing office suite market Monopolizing web browser markerMonopolizing web browser marker

Netscape navigator Netscape navigator Sun-systems JavaSun-systems Java

Finance Crime/FraudFinance Crime/Fraud

EnronEnron Over-prediciting profitsOver-prediciting profits Book cooking (Arthur Andersen)Book cooking (Arthur Andersen)

Martha StewartMartha Stewart Insider tradingInsider trading

WorldcomWorldcom Why is it difficult to catch and prosecute?Why is it difficult to catch and prosecute?

EmbezzlersEmbezzlers

Cressey (1973) Cressey (1973) Other People’s MoneyOther People’s Money Non-shareable problemsNon-shareable problems 4 Types4 Types

Physical isolationPhysical isolation Relationship problemsRelationship problems Financial problemsFinancial problems Job-related problemsJob-related problems

Rationalizations are part of our cultureRationalizations are part of our culture

ConclusionConclusion

Cost to societyCost to society 4 billion for street cirme v. 40 billion for WCC4 billion for street cirme v. 40 billion for WCC 1975: 3.2 million cases of unnecessary surgery 1975: 3.2 million cases of unnecessary surgery

performed.performed. Cost close to $5 billion/yr and killed as many as Cost close to $5 billion/yr and killed as many as

16,00016,000 Americans. Americans. Seldom prosecuted criminallySeldom prosecuted criminally TV/media image of a “criminal”TV/media image of a “criminal”

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CJ 325 [Workplace]

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