State-corporate crime
Encyclopedia
In criminology
, the concept of state-corporate crime refers to crimes that result from Public-private partnership
and inherent distorted relations of the state
and the policies and practices of commercial corporation
s surfacing as budget-bonus crime. The term was coined by Kramer and Michalowski (1990), and redefined by Aulette and Michalowski (1993). These definitions were intended to include all "socially injurious acts" and not merely those that are defined by the local criminal jurisdiction
as crime. This is not universally accepted as a valid definition so a less contentious version has been adopted here. As an academic classification, it is distinguished from:
One of the assertions made by those involved in this work is that a focus on the actual relationship between the state and corporations dependent on the state for their profitability can expose a more complete range of criminal activity than might be provided by independent analyses of corporate or state-organised crimes.
of each state in which the corporation desires to trade, and there is an inevitable linkage between the political and commercial interests. All states rely on businesses to provide an economic base consistent with each government's political policies. Without policies that are supportive of economic activity, businesses will not be profitable and so will not be able to provide the economic support that the state desires. In some cases, this symbiosis may lead to the commission of crimes. The research studies situations where, for various reasons, the oversight of corporate and/or state organisations by independent bodies has been manipulated or excluded, and either existing criminal activity is redefined as lawful, or criminal activity results but is not prosecuted.
Harper and Israel (1999) comment:
i.e. the way in which crime is defined is dynamic and reflects each society's immediate needs and changing attitudes towards the local varieties of conduct. The process depends on the values underpinning the society, the mechanisms for resolving political conflict, the control over the discourse, and the exercise of power. Snider (1999) notes that capitalist states are often reluctant to pass laws to regulate large corporations, because this might threaten profitability, and that these states often use considerable sums to attract regional or national inward investment from large corporations. They offer new investors:
Once the state is committed to this offer, it can be difficult to enforce local laws against pollution
, health and safety or monopolies. Green and Ward (2004) examine how the debt repayment schemes in developing countries place such a financial burden on states that they often collude with corporations offering prospects of capital growth. Such collusion frequently entails the softening of environmental and other regulations. The debt service obligation can also exacerbate political instability in countries where the legitimacy of state power is questioned. Such political volatility leads states to adopt clientelistic or patrimonialist patterns of governance, fostering organized crime, corruption, and authoritarianism. In some third world countries, this political atmosphere has encouraged repression and the use of torture. Exceptionally, genocide has occurred. But Sharkansky (1995) is careful to maintain a strict definition of "crime" for these purposes. Many individuals and organisations may disapprove of what governments do or fail to do, but such acts and omissions are not necessarily criminal.
, the United States
Federal government body with responsibility for the project, had only been subject to self-regulation of an entirely inadequate nature. Kauzlarich and Kramer (1993) examined a nuclear weapons production complex in the United States and found that the Department of Energy and the private corporations that contracted with the Department had been allowed to work in extreme secrecy, unfettered by the regulations that had governed the civilian nuclear industry. While Aulette and Michalowski (1993) examined a fire in the Imperial Food Products chicken processing plant in Hamlet, North Carolina
where twenty-five workers died, and uncovered "an interwoven pattern of regulatory failure on the part of several state and federal agencies" that had allowed the company's management to continue violating basic safety regulations in search of corporate profit. Finally, Harper and Israel (1999) concluded that the economic need for inward investment forced the Papua New Guinea
government to match the lax regulatory regimes offered in other developing countries. While governments and individual public servants claimed to maintain a commitment to environmental conservation, they were prepared to sacrifice the environment for economic development.
Criminology
Criminology is the scientific study of the nature, extent, causes, and control of criminal behavior in both the individual and in society...
, the concept of state-corporate crime refers to crimes that result from Public-private partnership
Public-private partnership
Public–private partnership describes a government service or private business venture which is funded and operated through a partnership of government and one or more private sector companies...
and inherent distorted relations of the state
State (polity)
A state is an organized political community, living under a government. States may be sovereign and may enjoy a monopoly on the legal initiation of force and are not dependent on, or subject to any other power or state. Many states are federated states which participate in a federal union...
and the policies and practices of commercial corporation
Corporation
A corporation is created under the laws of a state as a separate legal entity that has privileges and liabilities that are distinct from those of its members. There are many different forms of corporations, most of which are used to conduct business. Early corporations were established by charter...
s surfacing as budget-bonus crime. The term was coined by Kramer and Michalowski (1990), and redefined by Aulette and Michalowski (1993). These definitions were intended to include all "socially injurious acts" and not merely those that are defined by the local criminal jurisdiction
Criminal jurisdiction
Criminal jurisdiction is a term used in constitutional law and public law to describe the power of courts to hear a case brought by a state accusing a defendant of the commission of a crime...
as crime. This is not universally accepted as a valid definition so a less contentious version has been adopted here. As an academic classification, it is distinguished from:
- corporate crimeCorporate crimeIn criminology, corporate crime refers to crimes committed either by a corporation , or by individuals acting on behalf of a corporation or other business entity...
, which studies deviance within the context of a corporation and by a corporation; - political crimePolitical crimeIn criminology, a political crime is an offence involving overt acts or omissions , which prejudice the interests of the state, its government or the political system...
, which is crime directed at the state; and - state crimeState crimeIn criminology, state crime is activity or failures to act that break the state's own criminal law or public international law. For these purposes, Ross defines a "state" as the elected and appointed officials, the bureaucracy, and the institutions, bodies and organisations comprising the...
or "state-organised crime", which studies crimes committed by government organisations (Chambliss: 1989).
One of the assertions made by those involved in this work is that a focus on the actual relationship between the state and corporations dependent on the state for their profitability can expose a more complete range of criminal activity than might be provided by independent analyses of corporate or state-organised crimes.
Discussion
To be able to operate as a commercial business entity, the modern corporation requires a legal framework of regulation and oversight within which to exploit the relevant markets profitably. The infrastructure of law and commerce are provided by the governmentGovernment
Government refers to the legislators, administrators, and arbitrators in the administrative bureaucracy who control a state at a given time, and to the system of government by which they are organized...
of each state in which the corporation desires to trade, and there is an inevitable linkage between the political and commercial interests. All states rely on businesses to provide an economic base consistent with each government's political policies. Without policies that are supportive of economic activity, businesses will not be profitable and so will not be able to provide the economic support that the state desires. In some cases, this symbiosis may lead to the commission of crimes. The research studies situations where, for various reasons, the oversight of corporate and/or state organisations by independent bodies has been manipulated or excluded, and either existing criminal activity is redefined as lawful, or criminal activity results but is not prosecuted.
Harper and Israel (1999) comment:
- ...societies create crime because they construct the rules whose transgression constitutes crime. The state is a major player in this process.
i.e. the way in which crime is defined is dynamic and reflects each society's immediate needs and changing attitudes towards the local varieties of conduct. The process depends on the values underpinning the society, the mechanisms for resolving political conflict, the control over the discourse, and the exercise of power. Snider (1999) notes that capitalist states are often reluctant to pass laws to regulate large corporations, because this might threaten profitability, and that these states often use considerable sums to attract regional or national inward investment from large corporations. They offer new investors:
- preferential tax concessions not available to the ordinary citizen or local business if foreign investment is sought;
- loans, guarantees and other financial support on preferential terms;
- directly trageted grants and other subsidies; and
- a purpose-built infrastructure to subsidise the set-up costs.
Once the state is committed to this offer, it can be difficult to enforce local laws against pollution
Pollution
Pollution is the introduction of contaminants into a natural environment that causes instability, disorder, harm or discomfort to the ecosystem i.e. physical systems or living organisms. Pollution can take the form of chemical substances or energy, such as noise, heat or light...
, health and safety or monopolies. Green and Ward (2004) examine how the debt repayment schemes in developing countries place such a financial burden on states that they often collude with corporations offering prospects of capital growth. Such collusion frequently entails the softening of environmental and other regulations. The debt service obligation can also exacerbate political instability in countries where the legitimacy of state power is questioned. Such political volatility leads states to adopt clientelistic or patrimonialist patterns of governance, fostering organized crime, corruption, and authoritarianism. In some third world countries, this political atmosphere has encouraged repression and the use of torture. Exceptionally, genocide has occurred. But Sharkansky (1995) is careful to maintain a strict definition of "crime" for these purposes. Many individuals and organisations may disapprove of what governments do or fail to do, but such acts and omissions are not necessarily criminal.
Examples of the research
Following the Challenger space shuttle explosion, Kramer (1992) noted that NASANASA
The National Aeronautics and Space Administration is the agency of the United States government that is responsible for the nation's civilian space program and for aeronautics and aerospace research...
, the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
Federal government body with responsibility for the project, had only been subject to self-regulation of an entirely inadequate nature. Kauzlarich and Kramer (1993) examined a nuclear weapons production complex in the United States and found that the Department of Energy and the private corporations that contracted with the Department had been allowed to work in extreme secrecy, unfettered by the regulations that had governed the civilian nuclear industry. While Aulette and Michalowski (1993) examined a fire in the Imperial Food Products chicken processing plant in Hamlet, North Carolina
Hamlet, North Carolina
Hamlet is a town in Richmond County, North Carolina, United States. The population was 6,018 at the 2000 census.-Geography:Hamlet is located at ....
where twenty-five workers died, and uncovered "an interwoven pattern of regulatory failure on the part of several state and federal agencies" that had allowed the company's management to continue violating basic safety regulations in search of corporate profit. Finally, Harper and Israel (1999) concluded that the economic need for inward investment forced the Papua New Guinea
Papua New Guinea
Papua New Guinea , officially the Independent State of Papua New Guinea, is a country in Oceania, occupying the eastern half of the island of New Guinea and numerous offshore islands...
government to match the lax regulatory regimes offered in other developing countries. While governments and individual public servants claimed to maintain a commitment to environmental conservation, they were prepared to sacrifice the environment for economic development.