The Impact of White Collar Crime in America

A Widespread Problem
White collar crime is a widespread problem, yet it is often overlooked because many deem it to be somehow less serious than most other categories of crime and therefore fail to recognize its tremendous cost to American businesses and consumers. This article will document the problem of white collar crime in the United States and explore its impact on American business and the quality of American life.

Definition
White collar crime, often referred to as 'crime in the suites' (as opposed to 'crime in the streets,') has been defined by Edwin H. Sutherland, in his classic, White Collar Crime (Holt, Rhinehart, and Winston, NY 1967,) as "crime committed by a person of respectability and high social status in the course of his occupation." It was, in fact, Sutherland himself who coined the term in 1939 in a speech given before the American Sociological Society.

Categories
The unlawful acts broadly referred to as white collar crime fall into two major categories: crimes committed by individuals and crimes committed by corporations (or other businesses.) White collar crime by individuals may be committed against an employer or other business, another individual, or the government. Similarly, corporate crime may be directed at another corporation (or business), the government, employees, or the public.

The various types of white collar crime affect the businesses and citizens of America in numerous ways--some direct and some indirect.

Serious Repercussions
It is clear, from the data which follows, that white collar crime--whether committed by individuals or corporations--has serious financial and social repercussions in American society.

Financial
Where financial costs are concerned, the net result of the various types of white collar crime is increased economic hardship for the average citizen and consumer. One reason for this is that such crime increases the cost of doing business, and any such increase in business costs is ultimately passed on to the consumer through increased prices and decreased services.