ABSTRACT

This chapter discusses two general views on organizational behavior that have been adapted to explain business crime: the rational goal model and the organic which emphasizes the relationship between firms and their economic and political environment. Even though the law treats corporations as intangible persons, illegal corporate behavior cannot be fully explored within the framework of theories of deviance and crime that are applicable to individuals. A corporation that emphasizes profits business ethics and ignores corporate responsibility to the community, the consumer, or society is likely to have difficulty complying with legal norms. Conversely, employment in industry following government service is fairly common and may influence government in favor of corporations. The cultural environment within which the modern American corporation operates may actually encourage or discourage criminal or deviant behavior. Numerous beliefs of the corporate world help to neutralize government efforts to deter or to prevent violations and reduce the effectiveness of legal sanctions applied to corporations and their executives.