At KordaMentha Forensic, we are experienced in reviewing and
implementing detection and preventive systems to protect
organisations from both White Collar Crime and Corporate Crime.
It is a common misconception that White Collar Crime and
Corporate Crime are the same, but the element that distinguishes
the two is who the benefits relate to. Although both forms of
crimes are technically carried out by individuals, the intentions
are starkly different. With a better understanding of the
difference between the two, corporations can be better equipped to
minimise or prevent the negative consequences associated with these
Here's the difference:
The following are two real-world examples of how a White Collar
Crime / Corporate Crime can be perpetrated:
White Collar Crime – Rajina Subramaniam.1 In
2013, Ms Subramaniam stole approximately AUD 45.3 million from her
employer, ING Insurance, over five years and used the monies to
purchase luxury goods and property – including AUD 16 million
worth of jewellery and eight waterfront apartments. Her method of
siphoning money was not particularly sophisticated: she transferred
the monies into accounts under her maiden name or directly into the
accounts of the shops. She eventually got caught when a jewellery
shop called ING to check whether it had authorised an AUD 2.5
million payment for a diamond she ordered. She was sentenced to
seven years in jail for committing fraud against her employer.
Corporate Crime – Deepwater Horizon oil spill. In 2010,
an explosion on an oil rig created a significant oil spill at the
Gulf of Mexico. Investigative reports have concluded that BP, along
with their working partners, had made "cost-cutting
decisions" (mainly due to not having effective controls in
place to ensure that the following of procedures for testing the
stability of the cementing) that eventually contributed to the oil
spill.2 The damages from the blow out resulted in loss
of life and significant pollution to the Gulf of Mexico. As a
result of this mishap, BP suffered a loss of USD 4 billion, and
pleaded guilty to 14 criminal charges.3
The two crimes are contrastingly different. Most corporations
focus on policies and procedures for preventing White Collar Crime.
However, given the detrimental financial (and reputational)
effects, it's clear that policies, procedures and detection
systems need to be able to cope with potential Corporate Crime as
For example, does your company have sufficient policies and the
right mix of professionals to oversee that decisions made by
management comply with the laws and regulations of the country in
which it operates?
This increase has financial implications for companies and individuals found guilty under a wide range of Federal laws.
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