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Corporate Deviance

NCJ Number
82668
Author(s)
M D Ermann; R J Lundman
Date Published
1982
Length
207 pages
Annotation
The dynamics whereby internal corporate organizational processes and consequences can be labeled deviant are examined.
Abstract
The importance of administrative coalitions in corporate hierarchies is discussed, and some of the ways corporate positions and administrative coalitions produce corporate acts are illustrated. The corporate deviance-defining process is then portrayed, including the suggestion that it includes accusers, corporations, and audiences. It is shown that the defining process can result in a corporation's being labeled deviant for violating the rights of owners, employees, customers, or the general public. The Equity Funding scandal is used to show that corporate deviance against owners can occur because owners lack power to enforce their normative rights due to the separation of ownership from management. Examples of exposure of employees to harmful asbestos are used to show corporate deviance toward employees. It is shown that not only a concern for short-term corporate profits, but also corporate structure and the Federal Government contribute to actions contrary to the best interests of employees. Corporate deviance affecting consumers is shown in trade association and governmental actions that encourage price agreements. Corporate violations of the Corrupt Practices Act are examined, with particular attention to the actions of one corporate violator, Gulf Oil. Nonpenetrating controls are discussed as one means of controlling corporate deviance. Such controls seek to structure environments so that violators will change their actions in the future and potential violators will remain conforming. The penetrating controls discussed include changes in corporate chartering, the protection of 'whistle-blowers,' and the punishment of executives involved in corporate criminality. Extensive notes and annotated selected readings accompany each chapter. Name and subject indexes are provided.