White Collar Crime Rational Choice Theory

CHOICES

“White collar crime” refers to those offenses that are anticipated to generate fiscal gain using some form of dishonesty. This type of crime is usually committed by people in the commercial world who, as a result of their employment position, are able to get a hold of large amounts of other people’s money. “White collar crime” does not involve forceful, drug-related, or blatantly illicit activities. In fact, perpetrators are typically involved in otherwise lawful industries and may hold respectable positions in the community prior to the discovery of their fraudulent schemes. The slogan “white collar crime” was made up in 1939 by Edwin Sutherland during a dialog which he gave to the American Sociological Society. Sutherland described the term as “crime committed by a person of respectability and high social status in the course of his occupation”

There are different types of “white collar crime” that exists inclusive of fraud, embezzlement, insider trading and Ponzi schemes. “White collar crime” affects everyone and the main driving force of the perpetrator of the white collar crime is mainly greed plain and simple. There are different theories associated with “white collar crime”. One of these such theories is the rational choice theory. The rational choice theory indicates that persons have a choice of whether to commit an offence or not. In this case “white collar crime”. Therefore, before committing the crime the offender weighs the pros and cons associated with the crime. The offender who decides to commit “white collar crime” goes about it in the everyday activities in their job. The offender on a daily basis will observe a certain type of “white collar crime” taking place in his workplace and during the daily or routine interaction with his colleague who is carrying on the crime, will learn how to commit the same type of “white collar crime”