ABSTRACT
Organizational crimes were committed just prior to the US economy plunging into the deep and protracted recession of the early 1990s. In the United States during the 1980s, the question that dominated the study of society, institutions, and organizations was not the role of markets versus the state, but how to make markets, and therefore organizations and society, more efficient. In the 1980s, the development of financial control of the corporation and the development of organizational theory converged to support an economic/financial theory of control among managers and an economic paradigm about how hierarchies originate. Sociological, economic, and political explanations of American institutions seemed to revolve around rational choice and neoclassical economic theories. Securities markets have a long and well-documented history of fraud. Organizational theorists break the dimensions down into strategic and operational control. Williamson's economic organizational theory prescribes where the state has some chance of succeeding when markets fail.
