Emotional consequences physical harm harm to society

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Emotional consequences Physical harm Harm to society Harm to the environment In many instances white-collar crime can cut across all of these
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Financial Costs Victims can be individuals or businesses Not unusual for losses from large white-collar cases to be in the millions of dollars Even billions of dollars is not uncommon e.g., Bernie Madoff est. $18 billion in real losses The FBI estimates the total costs to be $300 billion dollars annually
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Cost to Society Weakening of the economy Estimated: between 1/3 and ½ of business fail due to white-collar crime Tax payers contribute to the prosecution of white-collar offenders Also are on the hook for loses when they must be addressed by the government Loss of trust and legitimacy in institutions Investment is an essential aspect of the economy
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Costs to Competition White-collar crime can also distort the market Allow business to get an edge on competition Colluding instead of competing Drives up prices, lowers quality of services The consumer is the ultimate loser here
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Physical Harm Many white-collar crimes results in death Sometimes significant death e.g., the Bhopal disaster Pain, suffering, both short- and long- term medical problems This of course dovetails into financial and emotional costs e.g., various lung diseases from mining, paper milling, unnecessary surgery
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Emotional Harms Stress of victimization Possible PTSD from significant events like auto accidents Loss of savings or livelihood – ‘how will I make ends meet?’ Violation of trust by the offender, and the agencies they hope will protect them
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Environmental Harm Air, water, and soil pollution, destruction of animal habitats, illegal logging, climate change Harms stem from polluting, by-products of manufacturing and commerce, fracking mishandling or incorrectly disposing of waste, etc. Translates into physical harm and indirect financial costs to people and society
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China: A country with lax environmental laws and regulation https:// ijing-smog-tale-of-two-cities / Research suggests that a non-trivial amount of air pollution in CA comes from China.
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Negative Externalities Negative externalities occur when costs are passed onto third parties not involved in economic transactions Pollution is a perfect example of this Most important, harms occur even when no crime is being committed “Privatized gains and socialized losses”
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