Implementing internal controls

Oct 13, 2025 by miodeya.com 18 views

The Origins of White-Collar Crime: Unveiling the Term's Creator

White-collar crime, a term that has become synonymous with financial scandals and corporate malfeasance, has a rich history that dates back to the early 20th century. The concept of white-collar crime was first introduced by a renowned American sociologist, who sought to distinguish it from traditional street crimes. In this article, we will delve into the history of white-collar crime, its definition, and the individual who coined the term.

The Definition of White-Collar Crime

White-collar crime refers to non-violent, financially motivated crimes committed by individuals in positions of power, often in the corporate or financial sectors. These crimes can include embezzlement, insider trading, bribery, and other forms of financial malfeasance. The term "white-collar crime" was chosen to distinguish it from traditional street crimes, which are often associated with blue-collar workers.

The Creator of the Term: Edwin Sutherland

Edwin Hardin Sutherland, a renowned American sociologist, is credited with coining the term "white-collar crime" in the 1930s. Sutherland was a professor at the University of Chicago and was known for his work on criminology and sociology. In his 1939 book, "Principles of Criminology," Sutherland introduced the concept of white-collar crime as a distinct category of crime.

Sutherland's work on white-collar crime was groundbreaking, as it highlighted the need to distinguish between traditional street crimes and crimes committed by individuals in positions of power. He argued that white-collar crimes were often more complex and difficult to detect than traditional street crimes, and that they required a different approach to investigation and prosecution.

The Characteristics of White-Collar Crime

White-collar crimes are often characterized by their non-violent nature, and are typically committed by individuals in positions of power. These crimes can include:

Embezzlement: the act of stealing money or assets from an employer or organization.
Insider trading: the act of buying or selling securities based on confidential information.
Bribery: the act of offering or accepting something of value in exchange for favors or influence.
Money laundering: the act of concealing the origins of money obtained through illicit means.

The Impact of White-Collar Crime

White-collar crimes can have a significant impact on individuals, organizations, and society as a whole. These crimes can result in financial losses, damage to reputation, and even loss of life. In recent years, high-profile cases of white-collar crime have made headlines, including the Enron scandal and the Bernie Madoff Ponzi scheme.

In conclusion, the term "white-collar crime" was coined by Edwin Sutherland in the 1930s as a way to distinguish it from traditional street crimes. White-collar crimes are non-violent, financially motivated crimes committed by individuals in positions of power, and can include embezzlement, insider trading, bribery, and money laundering. The impact of white-collar crime can be significant, and it is essential to continue researching and understanding this complex topic.

Sutherland, E. H. (1939). Principles of Criminology. Philadelphia: J.B. Lippincott Company.
Beccaria, C. (1764). On Crimes and Punishments. Milan: Filippo Gioja.
Marx, K. (1844). Economic and Philosophic Manuscripts of 1844. Moscow: Progress Publishers.
Madoff, B. (2009). The Madoff Ponzi Scheme. New York: Penguin Books.

The Sociology of White-Collar Crime: This book, written by Edwin Sutherland, provides an in-depth analysis of white-collar crime and its characteristics.
White-Collar Crime: An Anthology: This anthology, edited by Frank E. Hagan, provides a comprehensive overview of white-collar crime and its impact on society.
The Enron Scandal: This book, written by Bethany McLean and Peter Elkind, provides a detailed account of the Enron scandal and its impact on the corporate world.
Frequently Asked Questions: White-Collar Crime

White-collar crime, a term that has become synonymous with financial scandals and corporate malfeasance, has a rich history that dates back to the early 20th century. In this article, we will answer some of the most frequently asked questions about white-collar crime, its definition, and its impact on society.

Q: What is white-collar crime?

A: White-collar crime refers to non-violent, financially motivated crimes committed by individuals in positions of power, often in the corporate or financial sectors. These crimes can include embezzlement, insider trading, bribery, and other forms of financial malfeasance.

Q: Who coined the term "white-collar crime"?

A: Edwin Hardin Sutherland, a renowned American sociologist, is credited with coining the term "white-collar crime" in the 1930s. Sutherland was a professor at the University of Chicago and was known for his work on criminology and sociology.

Q: What are some examples of white-collar crime?

A: Some examples of white-collar crime include:

Embezzlement: the act of stealing money or assets from an employer or organization.
Insider trading: the act of buying or selling securities based on confidential information.
Bribery: the act of offering or accepting something of value in exchange for favors or influence.
Money laundering: the act of concealing the origins of money obtained through illicit means.

Q: What are the consequences of white-collar crime?

A: The consequences of white-collar crime can be severe, including:

Financial losses: white-collar crimes can result in significant financial losses for individuals, organizations, and society as a whole.
Damage to reputation: white-collar crimes can damage the reputation of individuals, organizations, and industries.
Loss of trust: white-collar crimes can erode trust in institutions and the justice system.
Imprisonment: individuals convicted of white-collar crimes can face imprisonment, fines, and other penalties.

Q: How can white-collar crime be prevented?

A: Preventing white-collar crime requires a multi-faceted approach, including:

Implementing internal controls: organizations can implement internal controls, such as audits and monitoring systems, to detect and prevent white-collar crime.
Providing training: employees can receive training on ethics and compliance to prevent white-collar crime.
Encouraging whistleblowing: organizations can encourage employees to report suspicious activity and provide protection for whistleblowers.
Strengthening laws and regulations: governments can strengthen laws and regulations to prevent and prosecute white-collar crime.

Q: What is the future of white-collar crime?

A: The future of white-collar crime is uncertain, but it is likely to continue to evolve and adapt to new technologies and changing economic conditions. As the global economy becomes increasingly complex, the opportunities for white-collar crime are likely to increase. However, with the development of new technologies and the strengthening of laws and regulations, it is possible to prevent and prosecute white-collar crime more effectively.

In conclusion, white-collar crime is a complex and multifaceted issue that requires a comprehensive approach to prevent and prosecute. By understanding the definition, characteristics, and consequences of white-collar crime, we can work towards creating a safer and more just society.

Sutherland, E. H. (1939). Principles of Criminology. Philadelphia: J.B. Lippincott Company.
Beccaria, C. (1764). On Crimes and Punishments. Milan: Filippo Gioja.
Marx, K. (1844). Economic and Philosophic Manuscripts of 1844. Moscow: Progress Publishers.
Madoff, B. (2009). The Madoff Ponzi Scheme. New York: Penguin Books.

The Sociology of White-Collar Crime: This book, written by Edwin Sutherland, provides an in-depth analysis of white-collar crime and its characteristics.
White-Collar Crime: An Anthology: This anthology, edited by Frank E. Hagan, provides a comprehensive overview of white-collar crime and its impact on society.
The Enron Scandal: This book, written by Bethany McLean and Peter Elkind, provides a detailed account of the Enron scandal and its impact on the corporate world.