WHITE COLLAR CRIMES ARE DEFINED AS ILLEGAL ACTS CHARACTERIZED BY GUILE, DECEIT, AND CONCEALMENT, AND NOT DEPENDENT ON THE USE OF FORCE OR VIOLENCE. THE SHORT-TERM ECONOMIC IMPACT OF WHITE-COLLAR CRIME IS EXAMINED, WITH ONE OF THE CONSEQUENCES BEING A $40 BILLION ANNUAL COST TO THE PUBLIC AND BUSINESSES. IN ADDITION, LONG-TERM EFFECTS OF WHITE COLLAR CRIME ARE DISCUSSED WITH THE MOST SERIOUS ONES BEING A LOSS OF PUBLIC CONFIDENCE AND DEBASEMENT OF COMPETITION; RETARDED ECNOMIC GROWTH; THE RISK, THREAT, OR OCCURRENCE OF PHYSICAL INJURY OR PSYCHOLOGICAL TRAUMA; AND THE EXISTENCE, SEVERITY, OR PROFITABILITY OF OTHER FORMS OF CRIMINAL ACTIVITY. CONCLUSIONS ARE REACHED URGING BUSINESSES TO TAKE ACTION AGAINST WHITE COLLAR CRIME FOR THE PRESERVATION OF THE FREE ENTERPRISE SYSTEM. NEXT, MANAGEMENT POLICIES, CONTROLS, PROCEDURES, AND METHODS ARE DISCUSSED IN RELATION TO THEIR EFFECTS ON THE PREVALENCE OF WHITE COLLAR CRIME. BOTH GENERAL AND SPECIFIC COUNTERMEASURES ARE DETAILED IN RELATION TO AN INDIVIDUAL FIRM'S LEADERSHIP ROLES, PERFORMANCE STANDARDS, DELEGATION OF AUTHORITY, IMPLEMENTATION OF BASIC CONTROLS, AND SEPARATION OF DUTIES. COMPANY USE OF AUDITS AND COMPUTERS ARE SHOWN TO BE EFFECTIVE IN WHITE COLLAR CRIME DETECTION. COMPANY POLICIES REGARDING REPORTING AND PROSECUTING WHITE COLLAR CRIMES ARE ANALYZED INCLUDING SPECIFIC REASONS FOR INACTION IN THIS AREA. FINALLY, COUNTERMEASURES FOR THE FOLLOWING CRIMES ARE EXAMINED: BANKRUPTCY FRAUD; BRIBERY, KICKBACKS, AND PAYOFFS; COMPUTER CRIMES; CONSUMER FRAUD; CREDIT CARD FRAUD; EMBEZZLEMENT AND PILFERAGE; INSURANCE FRAUD; RECEIVERS OF STOLEN PROPERTY; AND SECURITIES THEFT AND FRAUD. AN APPENDIX AND A CHART ACCOMPANY THE TEXT. (WJR)