Abstract
Downsizing has emerged as one of the noteworthy economic trends of the 1990's. This paper offers a preliminary exploration of the implications of corporate downsizing (real or perceived) for white collar crime. The following are among the issues considered: Can downsizing be defined, in a meaningful sense, as a crime against stakeholders (for the benefit of shareholders)? Is downsizing an alternative to the commission of illegal acts by corporations seeking to maximize profit and minimize loss, or an adjunct to such crime? Is the prospect of downsizing likely to inspire greater or lesser willingness on the part of corporate middle managers to engage in illegal acts on behalf of the corporation? Are motivations to commit crime against corporate employers — and opportunities to do so — intensified (or diminished) as a consequence of the prospect of downsizing? Does downsizing promote higher levels of engagement in white collar crime among corporate middle managers compelled to accept white collar jobs paying far less than positions lost due to downsizing? Finally, does downsizing and its prospect contribute to a broader social and cultural environment conducive to more white collar crime?
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The passage of a Welfare “Reform” Bill in July, 1996, suggests that we are likely to witness massive downsizing — although this specific term may not be applied — of the welfare rolls in the years ahead (See Peter T. Kilborn and Sam Howe Verhovek, “Clinton's Welfare Shift Reflects New Democrat,” The New York Times, 1996 (August 23) A1). Many parties have already denounced this legislation as effectively a “criminal” act, in the humanistic sense; beyond the justly feared intense suffering likely to be experienced by children, the infirm, and many other vulnerable constituencies, the potential for large costs in terms of enhanced social instability, conflict, and the incidence of conventional crime is real.
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See The New York Times, The Downsizing ..., 4. A study of the first half of 1996 found that job cuts jumped 28 percent (Reuters, “Study Says Job Cuts Rose 28% in First Half,” The New York Times 1996 (July 9), D18).
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Friedrichs, D.O. The downsizing of America: A neglected dimension of the white collar crime problem. Crime Law Soc Change 26, 351–366 (1996). https://doi.org/10.1007/BF00138901
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DOI: https://doi.org/10.1007/BF00138901