SOCIOLOGY

Research Paper Topic- Concept of White-Collar Crime and its

Impact on Society
 SOCIOLOGY

TABLE OF CONTENT

Serial No. TOPIC Page No.

1. ABSTRACT 3

2. INTRODUCTION 3

3. RESEARCH QUESTION 4

4. HYPOTHESIS 4

5. LITERATURE REVIEW 4-5

6. WHITE-COLLAR CRIME AND ITS TYPE 6

7. REASONS FOR GROWTH OF WHITE-COLLAR 7-8

CRIME
8. SCENARIO OF WHITE-COLLAR CRIMEIN INDIA 9

9. LAWS RELATED TO WHITE COLLAR CRIME 10-11

10. MEASURES TO CONTROL WHITE COLLAR 11

CRIME
11. CASES OF WHITE-COLLAR CRIME IN INDIA 12

12. IMPACT OF WHITE-COLLAR CRIME ON SOCIETY 13

13. FINDINGS AND SUGGESTION 14-15

14. CONCLUSION 16

15. BIBLIOGRPAHY 17

ABSTRACT
 SOCIOLOGY

White collar crimes are unique from typical offenses in that they have a fundamental component
of betrayal of ethics by engaging in illegal commercial activities driven by desire to gain a
competitive advantage. In this research paper we have discussed why a person is motivated to
commit such crimes, what is the current scene of such crimes in India and rules related to it and
how such crimes impact the society. These crimes by far the most dangerous threat to
civilization, causing massive damage while pretending to be moral.

Keywords- White-collar crime, greed, society, fraud, elite class.

INTRODUCTION

The phrase “white-collar crime” has evolved to mean a breach of the rules perpetrated by a
respectable and high-status individual in the exercise of his professional duties, Edwin H
Sutherland proposed the notion of the components of white-collar crime in 1939. His concept of
white-collar crime included Position, Profession, and Institution as essential elements. The
white-collar criminals he found were generally middle-aged individuals of decency and strong
societal position. He believed that White-Collar offenders were frequently located in rich areas
and that they were all well-liked in the society.

Sutherland believed that the perceptions and concepts of criminality at the time were
unsatisfactory, or better put, misrepresentative and inaccurate, and that they were built mostly on
“biased samples” of offenders and their illegal conduct. White collar crime refers to a wide range
of legal breaches committed by people or organizations in seats of power in society, actions that
would have a major influence on society. This is particularly evident of commercial misbehavior,
which may threaten people' security, healthcare, and prosperity while also influencing public
perceptions of commercial wrongdoing businesses, and business heads.

RESEARCH QUESTION
 SOCIOLOGY

1. Why are the white-collar crimes increasing in India?

2. How does the white-collar crimes create an impact on the society?

HYPOTHESIS

 In India there is a rapid growth in white-collar crimes since the people are becoming
greedier and all this is creating a negative impact on the society.

LITERATURE REVIEW

( YASH BISHNOI, 2012) To sustain its economic trajectory, India must decrease graft and
abuse in both the public and corporate sectors. Bribery and abuse as already said, deter
corporations from attracting investment. The drop in FDI in 2011 and the flight of capital from
stock exchanges by international monetary fund are strong evidence of the detrimental effect of
corrupt practices. As a result, the Indian government must strengthen administration and punish
criminals harshly. The necessity of the moment is for politicians to have the courage to tidy up
the messes that have been created. To decrease fraudulent, the corporate market must develop
scam preventive methods and place a strong emphasis on morals. As a result, the mantra must
constantly be that prevention is better than cure. Because the activities included deceiving
community confidence and trust, the community as a group must step up to defend the entire
community from such selfish individuals who are gradually eroding the society's morals and
values for the only purpose of seeking selfish soul.

( DR. MINAL H. UPADHYAY, 2014) However there are a lot of challenges in this respect,
since it gets increasingly harder to detect and identify white collar crimes. Most sufferers of
white-collar crimes are unaware that they are being victimized, and the series of incidents is
frequently reversed: “White collar crimes detectives begin with a suspicious con artist and ask,
what did he or she do that we can prove?” Most severe white-collar crimes are incredibly
 SOCIOLOGY

complicated, requiring thousands of man, hours and huge amounts of money to solve, rendering
it impossible to compare to crime in the city in respect of finding, tabulating, and reporting.

( DR. SANJAY I. SOANKI, 2017) In attempt to motivate more citizen activism targeted at
impacting governmental thought on these reduced apparent, particularly heinous types of crimes,
the underlying impacts of white-collar crime which converts people all throughout Country into
sufferers must be highlighted. The press, which plays an important part in identifying and hence
molding the criminal activity issue has the ability to impact public perception on white-collar
crime in this way. Though some feel that white-collar crime receives hardly any attention in the
press since this press is held by massive corporation, the comparative lack of reportage on
corporate crime must be addressed by the criminal's hidden character and the difficulties in
portraying it, also they are suppressed by elites.

( WAYNE WAWERU, 2019) White collar crime is clearly exerting a negative impact on
economic and social development. The realities are in front of us, and we simply no longer
manage to be proactive to the situation. Stronger inspections must be established in the longer
term so that corporations cannot get down with controversy for as long as they do now. It's
incredibly hard to go backwards and legitimize an enterprise after a fraud has begun. Individuals
will risk losing their occupations less frequently, allowing them to cover their expenses and seem
more satisfied at work; share markets will be lesser unstable, allowing traders to avoid large
damages and tribunals would be free of long white-collar cases, clients would not suffer
increased fees or irritation since, and attorneys would not waste energy and cash seeking to
identify false papers throughout the investigation phase. These advantages are enormous, and
they might spare the government lots of cash. Moving ahead, it is critical to make certain
adjustments and begin avoiding white collar crime; the nation cannot manage to wait any longer.
Because companies have such a large influence on society, thus it is critical to avoid major crises
in the long term and to reduce the monetary instability associated to white collar crime to a
minimal.

WHITE COLLAR CRIME AND ITS TYPE

 SOCIOLOGY

Everyone knows that several occupations provide profitable chances for illegal activities and
immoral behaviors that seldom gain public recognition; fraudsters and unprofessional people
have been found in industry, numerous occupations, and also social sphere They are likely to
turn unethical as a result of their lack of participation and personality development at schooling,
family, and various societal organizations. Truth and basic moral principles aren't important to
these criminals. As a result, they may engage in unlawful acts without concern of losing their
respect or position. This type of crime is referred to as “white collar crime”. And they are
essentially or outcome of competitive economy of mid-twentieth century. White-Collar crime
can be classified into following types-

1. Bank Fraud- To do an action or a sequence of practice with the intent of defrauding a

bank of resources.
2. Blackmail.- A request for cash made under fear of physical violence, commercial damage
or the disclosure of secret information.
3. Bribery - Occurs when wealth, commodities, activities, or other data is provided with the
aim of influencing the recipient's behavior, views, or judgments.
4. Cellular phone fraud - Misuse, manipulation, or modification of mobile telephone
services.
5. Embezzlement- When an individual who has been provided with cash or assets
misappropriates it for personal gain.
6. Counterfeiting - It is when someone duplicates or recreates an object without permission.
7. Forgery - When someone delivers a fake or useless document, such as a check or a fake
protection, with the purpose to deceive.
8. Adulteration - Contamination in meal and medication.
9. Professional crime - Crimes perpetrated by doctors and attorneys in the conduct of their
work.
10. Money laundering - It is the act of transferring cash from one person to another. The term
“laundering” refers to the concealing of the source of unlawfully acquired funds
11. Tax evasion - It is defined as submitting misleading details on tax filings or unlawfully
relocating properties to prevent paying taxes.
 SOCIOLOGY

REASONS FOR GROWTH OF WHITE-COLLAR CRIME

In previous years India has experienced a significant surge in white-collar crime. Because of the
large sums engaged in these offenses, it is thought that they harm the country much more than
normal crimes. They are usually for billions of rupees which is unsustainable for a growing
nation like India.

Few reasons that contribute to the growth of white-collar crime are-

1. Greed

Machiavelli, the founder of contemporary politics theory thought that mankind is selfish by
character. According to him a guy may overlook the demise of his father more quickly than
losing wealth of his father. The exact is applicable when it comes to committing white collar
crimes. If not because of selfishness, why would a guy of great societal standing and
significance, who is economically comfortable do such offences?

2. Competition

In this case we can consider the phrase "survival of the fittest." This means that there shall
forever be rivalry among individuals, with the greatest individual adapting to the situations and
incidents surviving.

3. There are no strict laws in place

As the electronic and online means of transaction assist the majority of these offenses, law
enforcement officials are hesitant to follow these issues because researching and monitoring
them becomes a complex and time-consuming task. It's tough to hunt them down since they're
generally conducted in the quiet of a house or workplace with no eyewitnesses present.
 SOCIOLOGY

4. Lack of knowledge

The basis of white-collar crimes differs from that of traditional offenses The majority of
individuals are unaware of it and do not realize that they are the most vulnerable targets of such
offense.

5. Effect is simple, quick, and lasts a long time

Offenders have been exposed to innovative means of conducting white collar crimes as a result
of rapidly increasing technologies, economic, and governmental forces. Inflicting injury or
causing damage to another individual has also become simpler and quicker because to
technological advancements. Furthermore, the expense of such offenses is significantly higher
than the expense of other offences such as murder, theft, or burglaries, and the sufferer will need
potential to repair the damage. The competitiveness would be reduced as a result.

6. Necessity

Individuals also conduct white collar crimes so that they can feed themselves and their families.
The most essential point, though, is that high-status individuals seek to satisfy their egos.

The following are some of the factors why white-collar offenders go unreported:

 Politicians and those in charge of enforcing laws fall into the similar category as these
professional offenders
 The cops put in little attention in the inquiry since they find it tedious and difficult, and
these perplexing inquiries frequently lack to provide positive findings.
 The rules are written in such a way that only professional offenders are at benefit.
 The judicial system has often been chastised for its slowness in making decisions. It is
not uncommon for the suspect to have died by the time the court renders its decision. As
a result, offenders are free to perpetrate offenses. White collar crime is rising at a higher
rate than other types of crime.
 SOCIOLOGY

SCENARIO OF WHITE-COLLAR CRIME IN INDIA

There have been a lot of recent commercial offenses that have arrive to knowledge. With the
advancement of business and electronics white collar crime has become a worldwide issue.
White collar crime is rife in India, as it is in every other nation. The fast-growing economic and
industry expansion of this emerging nation are to blame for the massive surge in white collar
crime in previous years. White-collar crime is not a recent occurrence in India.

The Indian penal code, enacted in 1860, is the country's first complete and written criminal
legislation. Corrupt practices, faking of currency and official seals, crimes pertaining to
standards and regulations, and actions related to adulteration of food and pharmaceuticals are all
included. Misrepresentation of common spaces and fraud, as well as forgery and document-
related offences including money faking. The revelations of the Santhanam Committee Study
portrayed a clear image of white-collar crimes perpetrated by respectable people such as
businessmen, industrialists, main contractor, and providers, as well as fraudulent government
servants.

In a study outlining the scope of white-collar crime in India, the “Commission on Prevention of
Corruption” stated:

“The advance of technological and scientific development is contributing to the emergence of

mass society with a large rank of file and a small cont. rolling elite, encouraging the growth of
monopolies the rise of managerial class and intricate institutional mechanisms. Strict adherence
to high standard of ethical behavior is necessary for the even and honest functioning of the new
social, political and economic processes. The inability of all sections of society to appreciate this
need in full result in the emergence and growth of white collar and economic crimes renders
enforcement of laws themselves not sufficiently deterrent, more difficult. Tax evasion and
avoidance, Share-pushing, malpractices in share markets and administration of companies,
monopolistic control, usury, under invoicing or over invoicing, hoarding, profiteering
substandard performance of contracts of construction and supply, evasion of economic laws,
bribery and corruption, election offences and mal practices are some examples of white-collar
crime".
 SOCIOLOGY

LAWS RELATED TO WHITE COLLAR CRIME

Stockpiling profiting, and money laundering are examples of white-collar crimes that are
widespread in India's commerce and trade. Breaches of Foreign exchange regulations (i e.
FERA), and international trade rules, have often been used in the interests of enormous gain. In
addition, in India, additional white-collar crime includes the adulterations of products,
consumables and medicines causing irreversible harm to population wellbeing. Crimes against
white collars are tough to investigate since typically complex procedures and even many diverse
persons are involved. The Indian Government has enacted a number of administrative
laws, violating of those leads to white-collar crimes. Few of the rules that are there for white-
collar crime are- “Essential Commodities Act 1955”, “The Industrial (Development and
Regulation) Act, 1951.”, “The Import and Exports (Control) Act, 1947”, “The Foreign Exchange
(Regulation) Act, 1974”, “Companies Act, 1956”, “Prevention of Money Laundering Act, 2002”.

Banking scam, indemnity scam, payment cards scam and other offences are all prohibited by the
Indian Penal Code. Under "KYC (Know Your Customer)" standards, the Reserve Bank of India
has given instructions that bankers must carefully adhere to. The details of money transfers must
be kept for 10 years by banking and commercial organizations. The "Information Technology
Act, 2000" was adopted to offer formal protection to the authenticity of data transmitted in
business activities in attempt to combat the offences that are technically and digitally related.

Section 43 and 44 of Information Technology Act prescribes the penalty for the following
offences:

• “Unauthorized copying of an extract from any data”.

• “Unauthorized access and downloading files”.

• “Introduction of viruses or malicious programs”.

• “Damage to computer system or computer network”.

• “Denial of access to an authorized person to a computer system”.

• "Aiding any person to facilitate unauthorized access to a computer”.

 SOCIOLOGY

Together with tightening the legislation, additional steps must be implemented, such as proper
instruction for authorities, the hiring of young generation rather than a group of senior citizens.
More panels and speedy procedures should be established by the judicial system. Furthermore,
increasing knowledge of the need of utilizing modern equipment to play a respectable role rather
than falling prey to forgeries and schemes should be a priority. It is necessary to make criminal
culpability permanent.

MEASURES TO CONTROL WHITE COLLAR CRIME

White collar crimes are expected to increase significantly in a nation like India wherein
widespread hunger, vast unemployment, and stupidity influence individuals 's lives. Controlling
such offences is a critical issue for the nation's criminal judicial system. Nevertheless, the
following are few of the corrective strategies for combatting white collar crime:

1. Using the national channel platforms, and various sound tools to raise widespread
attention about such atrocities. Comprehensive judicial educational programs may be
capable to assist to significantly reduce the prevalence of white-collar crime.
2. White collar offenders may be subjected to strict regulating legislation and harsh
penalties, which may aid in the reduction of these offenses. Even laws that operate
retroactively can be acceptable for such a reason.
3. Specialized courts must be established with the authority to punish white collar offenders
to up to 10 years in jail.
4. By revising the criminal statute, a distinct section on white collar and behavioral offenses
must be included ensuring that white collar offenders condemned by the judiciary do not
avoid justice due to their superior societal standing.
5. Beyond everything, it appears that civic awareness is the foundation of anti-white collar
crime policy.

It will be impossible to prevent this rising threat until white collar crimes emerge repulsive to the
general population. In attempt to achieve, this goal morale must be strengthened, notably
amongst these upper echelons as well as in the social sector.
 SOCIOLOGY

CASES OF WHITE-COLLAR CRIME IN INDIA

1. HARSHAD MEHTA SCAM

The Harshad Mehta fraud stunned the country and the commerce. He used the financial service's
flaws to his benefit. He began by acquiring false bank invoices from local banks, which he then
passed onto more institutions as collateral in order to get money. As a consequence, share values
in the financial markets skyrocketed, impeding the country's economic development. A total of
Rs. 5000 crore was allegedly engaged This is among the most common frauds involving
financial tampering and false data.

2. HDFC BANK CASE

An inner inquiry performed by HDFC Bank has revealed an employee scam perpetrated by a
consultancy business on the bank. The consultant firm perpetrated the scam by falsifying
applicant profiles using fake papers, including counterfeit wage receipts, fraudulent diplomas
and credentials, and recommendations that does not existed.

3. ABDUL KARIM TELGI CASE

He was condemned fraudster from India who made cash by manufacturing fake stamped sheets.
In India, he made cash manufacturing fake stamped sheets. He obtained false clinical
certifications prepared by two physicians to assist him gain parole on the basis of illness
concerns. As a result, they both were sentenced to seven years in jail and a penalty of 14 lakhs
per underneath the “Prevention of Corruption Act of 1988”. This is unmistakable proof of a
medical-related white-collar crime.

4. ABHAY SINGH CHAUTALA Vs. CBI

Once the Central Bureau of Inquiry (CBI) began its inquiry, it was discovered that the
petitioner's father had obtained large estates, as had the petitioners. The petitioner had given a
separate office of the defendant from they were occupying at the moment, according to the High
Court. As a result, the punishment imposed under “Section 19 of the Prevention of Corruption
Act of 1988” was found to be invalid.
 SOCIOLOGY

IMPACT OF WHITE-COLLAR CRIME ON SOCIETY

White collar crime refers to a wide range of legal breaches committed by people or organizations
in places of power in social structure, actions that could have a major influence on society. This
is particularly evident of commercial misbehavior, which may threaten people' security,
healthcare, and prosperity while also influencing public perceptions of commercial wrongdoing
businesses, and business heads. A substantial majority of robbery charges come under the
umbrella of white-collar crime, which is defined by deceit and the absence of brutality. Survivors
of white-collar crime often suffer just as much as sufferers of aggressive offence. A higher
likelihood of mental illness and suicidal behavior has indeed been related towards being a target
of scam.

Because white collar crime really has a large monetary effect on businesses and society, it is
becoming considerably more common. Whenever a firm closes as a result of an illegal conduct
employment is endangered at all stages, and also shareholders who shed a lot of cash.
Disgruntled customers, and months of negotiations. A white-collar crime has far-reaching
consequences, including loss of employment, share value declines, market rising prices, legal
fees, and prison sentence following trial and not to mention the amount of the offense itself.

White collar crimes are detrimental to social structure because they are perpetrated by persons
who should've been held up as ethical role models and who must act properly. As a result,
society gets contaminated. Many individuals believe that since white collar crimes are not
aggressive, they must not be penalized as seriously as certain offenses. However, these offences
can have serious and long-term consequences. These offenses have the potential to ruin a
human's career by entirely depleting their assets. Sometimes, broad techniques can result in the
loss of 100s, if not thousands, of person's hard-earned wealth. As a consequence of unethical
criminal activity, companies may indeed be forced to declare for insolvency.
 SOCIOLOGY

FINDINGS AND SUGGESTION

A survey conducted showed that bribery and corruption is the most prevalent type of white-collar
crime.

Rajasthan after Pradesh accounted for the highest number of white-collar crimes in 2017, also we
can see the number of white-collar crimes raised in 2017 with respect to 2016.
 SOCIOLOGY

Some suggestions that will help in cubing white-collar crimes-

1. Employee selection should be tightened up.

Before hiring, firms must evaluate their employees' qualifications and search for warning signs,
which might include things like fraudulent qualifications or the presentation of inaccurate data.

2. Present the method of validation.

A multi-level inspection of every trade or agreement can uncover fraudulent and unethical
personnel earlier and avoid unnecessary crimes from occurring.

3. Worker Actions Are Being Monitored

The use of the web is common in white-collar offences. In such circumstances, it's critical to
maintain a tight eye on your workers' actions while staying inside the legal boundaries. Workers
may help a company reduce white-collar crime if they know that they are being monitored.

4. Increasing consumers' knowledge

Most money transfers are now submitted electronically at an interpersonal basis, thanks to
advancements in digital technologies. As a result, it is critical that the wider populace be
informed about the importance of taking sufficient measures when doing activities in order to
safeguard themselves from computer hackers.

5. Laws that are strictly enforced

It wasn't sufficient to have legislations; they must also be enforced in order to reduce the
likelihood of such criminal victimization. Low penalties and brief sentences are ineffective
deterrents for criminals who perpetrate such offences.
 SOCIOLOGY

CONCLUSION

The tight connection among white collar crime and capitalistic economy, the supporting
connection between it and dishonesty, and the inability of the present judicial system for dealing
with its prevalence and complexities are the 3 primary findings. It will be the latter of them that
is sometimes used as a reason to put corporate crime on a separate basis than criminal activity.
Nevertheless, the difference is false. As soon as a breach of society at large fundamental
standards is regarded as an offense, the only difference is in the mechanisms of detection and
prosecution.

In the process of growth and progress, all communities go across phases where a specific form of
violent behavior looks disgusting and necessitates exceptional punishing and judicial actions,
because the current legislation seems powerless and ineffectual at the moment. If the legislation
is ineffectual and the processes meant to safeguard individuals from administrative bullying are
onerous and counterproductive, they should be changed and streamlined so that the culpable are
punished quickly and effectively. However, the modifications cannot be capricious or
discriminating; they must be uniform in scope and applicability, because, in the end, the
modifications will affect everyone.

White collar crime cannot be completely eradicated in the social and financial framework as it
currently exists, and even a significant decrease will be pure fantasy. More severe legislative
and technical procedures, as well as sincere implementation, can only accomplish limited results,
and even that is questionable except if the structure of government is committed quite so to truly
rid oneself of its own opaque relationship with trading and industry.
 SOCIOLOGY

BIBLIOGRAPHY

1. Kotapati Srinivasa Reddy, Institutional Laws, and Mergers and Acquisitions in India: A
Review/Recommendation, SSRN Electronic Journal, (2015).
2. Yash Bishnoi, WHITE COLLAR CRIMES IN INDIA, International Journal of Social
Science & Interdisciplinary Research, Vol.1 Issue 9 (September 2012)
3. Kirtiraj Sawale,WHITE COLLAR CRIMES AND CRIMINAL LAW IN INDIA,
International Research Journal Commerce arts science, Vol. 7 Issue 10 (2016)
4. O.P. Tewari, Indian Approach and measures to control white-collar crime in India,
International Journal of Science and Innovative Research Studies, Vol.5 Issue 12 (12
December 2017)
5. Wayne Waweru, IMPACT OF WHITE-COLLAR CRIME ON SOCIETY (2019)
6. Dr. Sanjay I. Soanki, A Critical Study on White-Collar Crimes in India, International
Journal of Business and Management Invention Volume 6 Issue 11 (November. 2017)
7. (2014). White-Collar Crime in India, 2.
http://www.raijmr.com/ijrhs/wp-content/uploads/2017/11/IJRHS_2014_vol02_issue_02_
02.pdf
8. White Collar Crimes in India - Indian Law Portal. https://indianlawportal.co.in/white-
collar-crimes-in-india/
9. White-Collar Crime: What It Is and How It Affects Society
https://attorneyatlawmagazine.com/white-collar-crime-what-is-how-affect-society
10. Analysis Of White-Collar Crimes In India - iPleaders. https://blog.ipleaders.in/analysis-
white-collar-crimes-india/
11. WHITE-COLLAR CRIME IN INDIA-Lexsyndicate
https://www.lexsyndicate.com/post/white-collar-crime-in-india