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Profits, pressure and corporate lawbreaking

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Abstract

While neglect, exploitation, denial of human rights and abuse of nursing home residents can be found in both non-profit and for-profit nursing homes, substantially higher non-compliance with the law is found among for-profits. A significant source of non-compliance is pressure on senior management from proprietors to reach financial goals that can only be attained by cutting corners on quality of care. This source of non-compliance is stronger among for-profits than nonprofits in a sample of 410 Australian nursing homes. These data therefore supply more systematic support for what, has been a communplace observation in the corporate crime literature: that pressure for lawbreaking comes from the top down and from profits.

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Notes and references

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  23. One of Australia's most outstanding directors of nursing, who has worked in both the for-profit and non-profit sectors made this point in a somewhat different way: “Some of the church homes are too much into the caring role. They're not enough into independence. They encourage the sick role, dependency.”

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Jenkins, A., Braithwaite, J. Profits, pressure and corporate lawbreaking. Crime Law Soc Change 20, 221–232 (1993). https://doi.org/10.1007/BF01308451

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