NCJ Number
92741
Date Published
1983
Length
399 pages
Annotation
Adverse publicity is a valuable form of social control of corporations even when it does not lead to conviction for an offense or to a financial impact on the company.
Abstract
Study data came mainly from interviews at 17 transnational corporations which were involved in publicity crises as a result of allegations of harmful business behavior. Only a few of the cases involved financial impacts. However, the nonfinancial impacts were perceived by corporate executives as harmful and as a stimulus to reform. These impacts included loss of corporate and individual prestige, declines in morale, distraction from getting on with the job, and humiliation in the witness box. Many companies undertook piecemeal changes rather than thoroughgoing reforms, although every case produced some worthwhile reform. These reforms took place even though criminal convictions occurred in only five cases. While improvements in the use of informal publicity as a means of controlling corporate crime would be helpful, the use of formal publicity would be even more useful. Publication of the details about an offense should be made available as a court-ordered sentence against corporate offenders. In addition, presentence or probation orders against corporate offenders should be used to require disclosure of organizational reforms and disciplinary action undertaken as a result of an offense. A detailed description of each case, chapter notes, an index, and appendixes presenting excerpts from two consent agreements are provided.