
Crime in South Africa has reached unprecedented levels, which includes “white-collar” crime. In fact our own Police Commissioner – Mr. Jackie Selebe – has been associated with white-collar crime.
Though the financial costs of white-collar crimes far exceed the value of street crimes, it is logic that “street crimes” have priority to that of “suit crimes” – as the former has an immediate threat to our safety. Truth is that our prisons are “over stocked” with those who have committed violent crimes. As such white-collar criminals are often given a mere slap on the wrist. What is interesting is that white-collar crime threatens the relationship of trust between citizens and government as well as employers and employees.
Cognizance should be taken that all criminal behavior, whether violent or deceit and concealment, requires a motive and opportunity. It is, however, difficult to understand why trusted and well paid employees would jeopardize their position by stealing from their employers. We must assume that white-collar crimes are committed due to the desire for financial gain or alternatively an unexplained psychological disorder.
White-collar criminals, on the other hand, may justify their behavior by claiming that nobody has been hurt by their actions. This statement is debatable as in the case of embezzlement the continuous action thereof can ultimately lead to retrenchments.
The general perception of the South African public is that the police and criminal justice systems are simply not equipped to attend to such cases. In actual fact our police have admitted to this and called for an alliance with the private sector in addressing the matter.
It is imperative to comprehend that the effects of white-collar crimes are filtered through society. As a result insurance premiums rise significantly due to false claims, tax policy amendments due to tax evasion may be implemented, possible retrenchments due to the erosion of funds and most important the loss of trust between individuals or entities.
White-collar crime is to be dealt with in a serious light. As such a proactive crime prevention strategy is required. This may be time-consuming, difficult to implement and require changes to an existing organizational structure. In the business world, ethical behavior by a company’s personnel is determined by the example set by top management. It is thus necessary for the top structure of an organization to create a code of ethics which includes a commitment to expose fraudulent action. In addition and environment of transparency, integrity and accountability must be created which will assist organizations in combating white-collar crime.
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