The problem of corporate crime has often been seen as a concrete manifestation of a capitalist society that both implicitly and explicitly validates the survival-of-the-fittest theme. In the context of companies striving to keep ahead of the pack, so to speak, this would normally mean resort to any and all means to slaughter the competition and enjoy unbridled profits. Many scholars believe that regulatory mechanisms have, to a large extent, been inadequate in controlling corporate crime.
There are, of course, many different types of corporate crime. There is what is known as "corporate manslaughter", as when it involves a corporation causing a fatal disaster resulting in massive loss of lives. A good example of this would be the Union Carbide case of 1984. A more common type of corporate crime is one involving embezzlement by the directors of the corporation, resulting in prejudice to the minority shareholders and the public at large. In cases involving tax evasion, there is prejudice to the government as well. There is no dearth of examples of abuse of fiduciary duty by company directors.
The idea of corporate governance is rooted in the idea of agency. ...Show more