ABSTRACT
Some corporations collapse when the organization is hit by a white-collar crime crisis in terms of detection and prosecution. Classic examples include Enron and WorldCom (Soltani, 2014). Some companies are able to recover after white-collar crime detection and prosecution. The chapter argues that the relationship between perceived situation and implemented actions determines whether the outcome will be successful. If reality is denied and top management has a distorted perception of the situation, then collapse becomes a much more likely outcome. If the perceived situation is consistent with the actual situation, and implemented actions are consistent with the needs of the situation, then recovery becomes a more likely outcome. White-collar crime is sometimes attributed to the defects and failure of corporate governance practices by key players in the business.
