Different Factors That Motivate White Collar Crimes

White collar crimes are very common but the most unfortunate thing is that this field of law is relatively not well understood or studied properly. In fact, that is the main reason why people who commit such crimes easily slip through the legal cracks with minor penalties and massive profits. It is very important to note that these types of crimes are costing the society a lot more than other crimes, such as burglary and robbery. Murders cause very little number of deaths as compared to the number of deaths caused by inadequate pharmaceutical testing and other such corporate mishaps. Therefore, it is very important for everybody to have at least the basic understanding on what these types of crimes are and what motivates people to commit such crimes. Following is a brief rundown on it.


There are many misconceptions regarding white collar crimes. Most people often do not realize that the burden of such crimes is actually on their shoulders. It is the public who pays the damage caused by such criminal activities. Do you know US taxpayers had to pay over five hundred billion dollars to cover the damage caused by the early 90’s and late 80’s loan and savings scandal? Shoddy business practices do not cost a lot to the companies that fail on such grounds because the government in most cases protects them so that widespread economic collapse could be prevented. The problem here is that the entire system is organized in such a way that such crimes are often very difficult to detect despite the fact that they cost in billions of dollars. This is the most basic reason why such criminals are always highly motivated to indulge in such activities without any fear.

Lack Of Punishment

Lack of punishment is another major reason that motivates people to commit white collar crimes. Our legal system often gives preferential treatment to such criminals. It is very rare when such while collar criminals are tried for their offences. Even when it happens, they easily get away by paying trivial monetary fines; even the jail imprisonment period is also very short. Since there is no fear of harsh consequences, many companies, businesses and other influential people see no problem in committing such crimes.

Financial Incentives

White collar crimes have turned out to be a “highly profitable business”. The financial incentives are very high as compared to the punishments or penalties it attracts. Businesses that work with the only motive to make profits, where profit is the bottom line and must be achieved at all costs, often lack social connections and they do not care if the public in large has to suffer because of their white collar criminal activities. However, it does not mean that all companies and businesses are involved in these types of crimes. There are also many businesses that have community involvement and strong social bonds. They never get engaged in such activities because of the strong moral convictions.

Different Types Of Crimes

There can be different types of white collar crimes, such as anti-competitive business practices, fraud, illegal dumping of commercial waste, and many other such things. All such things are very common and many businesses often commit such crimes in an attempt to increase their profitability and efficiency. Anti-competitive business practices may include many types of criminal activities, such as monopolizing products and unfair pricing. Since such activities disable competitors. The absence of competitors gives room for the corporations to sell inferior quality products at high prices. Fraud is also common to increase a company’s profitability. Such crimes may include things like misleading advertisings or misrepresenting certain products. Likewise, when it comes to dumping of commercial waste, the laws require the process to be environmental friendly, which can be quite expensive. Companies and businesses try to save money in this regard by dumping waste illegally in a cheaper way, which pollutes the environment.

Overall, there are more reasons available to motivate people to commit white collar crimes than you can imagine. Your awareness of the laws and your legal rights can play a curial role when it comes to protecting yourself from the damage caused to the public at large because of white collar criminal activities.