The Relationship between Neoliberal Ideology and Corporate Crime (Coursework Sample)

Discuss The Relationship Between Neoliberal Ideology And Corporate Crime Name: Course: Tutor: University: City: Date:  The Relationship between Neoliberal Ideology and Corporate Crime Neoliberalism is defined as a set of economic policies that suppose that the economy performs well in the absence of interferences. In this regard quotas, tariffs and subsidies among other interventions by the government are viewed as setbacks to the growth of the economy. Various terms have been used in different places to refer to neoliberalism. Washington Consensus applies in the United States while Thatcherism is the term applicable in Great Britain. However, geographers view neoliberalism as an ideology that is a critique of the social and economic bases of the Keynesian system (Gallaher, 2009 p.152). The Keynesian economies recognized the role of the state in moderating economic development. However, with the undermining of this, the classical economic school has been revived while repackaged and rebranded as neoliberalism. Criminologists define corporate crime as acts that are perpetrated by individuals within business organizations, the business and corporations (Hartley, 2008 p. 1). In addition, Brock, Glasbeek, and Murdocca define corporate crimes as crimes that are punishable by criminal, administrative or civil law that are perpetrated by organizations. The purpose of these crimes is for the organization’s benefit, and they may assume various forms such as negligent or deliberate actions by persons or groups of persons within the organization ( 2014 p. 142). It is a fact that in the absence of interferences from the government, economies perform remarkably better. However, it is necessary for some form of regulation to be in place to check on the probable exploitation of the consumers, employees and the general public. Corporations complain that the government regulations are both uncalled for and unnecessary. To some extent, the complaint may seem valid since the organizations have laid down sound business and ethical principles that offer guidance in performing their activities (Clinard and Yeager, 2011 p. 301). The possession of a vast amount of resources by corporations predisposes them to corporate crime. Most of the donations to the political parties in America come from the companies. In addition, most companies are free from liability due to the fact of deregulation of control by the government (Hartley, 2008 p. 13). In corporate crimes, corporations dominate the use and control of the country’s resources while dictating their production and consumption therefore shaping consumerism and lifestyles. However, many actions by corporations are not treated as crimes. For instance, Pacific Brands a company in Australia in 2009 sacked a total of 1,850 employees while doubling the salaries and bonuses of its top executives in the period between 2007 and 2008. In spite of this the company received a total of A$ 20 million of dollars to assist in re-tooling and re-skilling its operations (Paul, 2012 p.61). Financial Scandals and Investor Rip-offs The rise of neoliberalism saw the escalation of corporate and white collar crimes. White collar crimes are those crimes committed by the powerful in many places the corporate world being inclusive. Admittedly, financial sector deregulation made it permissible for the corporations to take risks and in the event that dubious decisions were made, they got away with it. For instance, the rise and fall of Enron in 2001 in the US is a perfect example of corporate fraud and financial criminality. The presence of regulation would have checked of risk taking. Further, Enron took advantage of the absence of regulating authorities to engage in non-accounting practices while at the same time making disastrous decisions. The eventual outcome was the unrealistic profit forecasts that brought the organization to its reeling crash, not without the shareholders suffering significant losses. (Burton, 2013 p. 6) Within capitalism, a corporate crime is a sense of criminality that results in physical and emotional harm to many millions of lives. Many cases have been reported of Australian corporations defrauding investors through pyramid schemes. Such companies include Babcock & Brown, Allco Finance Group, Bridgecorp, Hastings Capital among many others that experienced bankruptcy with debts amounting to over A$ 14 billion dollars that belong to the investors. While this happens, the owners of these organizations make fortunes for themselves (Paul, 2012 p.60). Neoliberalism ideology has witnessed the commitment of spectacular frauds such as the loan and savings scandals during Reagan’s regime. The losses were amounting to US $ 1 trillion were incurred burdening the taxpayers (Crawshaw and Whitehead, 2013 p. 39). Financing of illegal Activities According to the neoliberalism ideology, the whole world is at the disposal of those who have the most capacity for exploiting it. Consequently, the world is viewed as both yours and mine, given that we understand how we can utilize it to the fullest capacity. In this case, the limitation is not set using physical boundaries but the ingenuity and capability of the individuals in exploitation. For instance, corporations in the oil industry are involved in various activities that constitute a corporate crime. The profits drawn from some oil exploring firms have been used to fund illegal activities including terrorism (Ruggiero & South, 2013 p. 13). The lack of prices standardizations in the oil industry necessitates the incentivizing of domestic and illegal transnational markets that allow oil smuggling to obtain alternative income (Ruggiero & South, 2013 p. 15). In addition, the financial sector, with particular reference to banking is primarily seen as being a corporate criminal enterprise. Many a times they have participated in deliberately withholding of information about financial transactions. As a result of concealing this information, funds have been used to finance terrorism and to allow massive financial fraud. With the neoliberalism ideology, there is a tendency of reluctance to punish such criminal acts. The financial criminality tolerance is associated with neoliberalism advocating for non-interference by the government in corporate activities (Ferguson, 2012 p. 21). The absence of convictions and their decreasing nature have made the practices within financial institutions culturally acceptable. Environmental Pollution The improper disposal of toxic waste and production of synthetic organic chemicals by many corporations in the US and other developed countries has led to environmental pollution. Many manufacturing firms empty their waste effluent into sewers and seas that become a potential health hazard to people living in those places (Potter, 2014 p. 114). As a result of this pollution, it is evident that the health of countries’ citizenry is significantly affected. In the US, it is estimated that 56 million people will develop cancer due to environmental pollution. Other maladies that result from pollution include birth defects, sterility, genetic disorders heart and lung ailments. In addition, environmental pollution has devastating effects on wildlife and their habitats. Therefore by all means corporate pollution constitutes serious criminal activity. Many corporations have denied responsibility, and some have resisted any legislation concerning environmental pollution. McWare Inc. a company that deals with manufacturing of water pipes and cast-iron was found guilty of environmental contamination (Friedrichs, 2009 p. 66). Corporate Violence The exposure of employees to unsafe working conditions constitutes corporate violence. In the process of performing their daily work, they may get injuries or be exposed to chemicals that are toxic in nature. Corporate violence can also be said to have taken place when organizations neglect willfully the welfare of their employees, consumers of the goods they produce and the general public. Interestingly, some organizations lobby to have laws enacted that serve their interests and, therefore, act as violence perpetrators. The neoliberalism ideology that opposes the interference of the government in corporate matters allows this kind of violence to take place unchecked (Byrne & Senehi, 2012 p.123) Selling adulterated and Contaminated Foods The domination of corporate organizations in the world of business has seen them engage in certain practices that have proved harmful to the consumers (Thio and Taylor, 2011 p. 293). Typically in the search for greater profits, the food industry has been a notorious culprit in selling of adulterated or contaminated foods. In some cases, the foods are contaminated with bacteria such as salmonella causing the consumers to experience abdominal cramps and diarrhea. For example in 2013, two companies in the UK: Liffey Meats and ABF Food Group were found to have supplied to various supermarkets contaminated meat. In addition, some firms add chemical additives that are responsible for causing cancer and other ailments. Consumers’ exploitation by corporate organizations is nothing new since the critical driving factor of the corporations is the generation of profits. The management and shareholders hunger for maximization of returns mostly at ...