Theories of WCC

 Behavioral -Organizational –Managerial Theories‘-

 1.Sutherlands –Differential Association theory
 2.Robert Merton –-Anomie Theory (1938)–
Durkheims- (1951)Anomie Theory
 3.Travis Hirschi (1969) –Control Theory
 4.Paternoster and Simpson 1993 –continued by
Shover,Hochstetler 2006 -Rational Control Theory
 5.John Braithwaite 1989- Integrated Theory
 Anomie Theory by Durkhiem
1951 inspired from Robert Merton
 Robert Merton –-Anomie Theory (1938)–
 Desirability of material success and individual achievement
is the goal but access to legitimate opportunities to achieve
goals by legitimate means is not equal
 Further Nikkos Passa argue that Societies based on
Capitalist economic principles have cultural and
structural contradictions that promote corporate deviance

 Durkheims- (1951)Anomie Theory –sense of Normlessness

or lack of regulation in the society-
because
 Control Theory--Social bond
theory of wcc by Travis Hirschi
 Travis Hirschi (1969) –Control Theory-premise of the
theory-
 Deviance is natural, is it developed due to gap between
individual and society ?

 Who enter (behavioral)? -Actor - act ?

Vs
 Why , How, When (Organizational) enter into WCC ?

 Behavior depend on societal bond

Social bond composed of four
interrelated elements-
 Attachment to others

 Commitment to conventional lines of action

 Eg- wcc by corporate executives (James R.Lasley 1988)–a
bond with Corporation is stronger than Society (ref- study
of 521 executives of multinational automobile company)

 Involvement in conventional activities

 Eg-Personal success =Organizational success

 Belief in society’s common value system

Hirschi and Michael Gottfredson
New Self Control Theory 1987-
1990
 Premise of theory-
 Crime and other forms of deviance result from the
combination of low self control and criminal
opportunities

 Persons of low self control are more likely to take

advantage of opportunities than of high self control
Moral content (Behavioral )of WCC
 By Fraud, bribery ,insider trading, tax evasion….

 By cheating, deception, stealing, disloyalty ,promise

breaking, disobedience
Impact, Causes of Behavior
 Impact-
 Motivate/attract others
 Financial loss

 Causes-
 lack of laws/ execution/ Dilemma of Judicial Activism
Rational Choice Theory
Paternoster and Simpson 1993 –
continued by Shover,Hochstetler 2006
Premise-all actors are self-interested and make
decisions about whether to engage in criminal or
conventional behavior according to an assessment of
costs and benefits.

Subjective and Objective: Cost-Benefit

Rational Choice Theory
Subjective Costs of Crime -feeling of guilt or fear of apprehension
Eg-bribe from senior citizens, non compliance

Subjective Benefit of Crime-would be the thrill and excitement of

getting away with something illegal .
 Eg- data hacker, duplicate docs

 An Objective Cost of Crime –

Formal punishment by the system
 Eg-goofing of accounts, tax evasion, payment of tax/duty /excise

 An Objective Benefit of Crime-

Gains made from the illegal act.
eg-to gain power ,contracts/tenders
Integrated Theory
 John Braithwaite -1989-according to him -
 To understand the causes of organizational crime, we
need to integrate the insights of strain ,labeling,
subcluture and control theories.

 Braithwaite argues that corporations can reduce the

likelihood that their members will violate the law by
strengthening internal controls against illegal behavior.
 He introduced the idea of differential Shaming –carried
out by regulatory agencies by stigmatizing or re-
integrative .