This paper addresses three interconnected topics in criminology. The first section examines the "dark figure of crime" — unreported and unrecorded offenses — and evaluates two major U.S. crime data collection systems, NIBRS and NCVS, in terms of their ability to capture accurate crime statistics. The second section surveys key social theories used to explain criminal behavior, including social structure theory, Merton's Anomie theory, the broken windows theory, and rational choice theory. The third section applies consensus and conflict theory to the Martha Stewart insider trading case, analyzing how public opinion, legal institutions, and corporate accountability interact in high-profile white-collar crime prosecutions.
One of the most prominent and unfortunate components of modern society is crime. Various factors influence an individual's criminal tendencies, including childhood background, socialization, the economy, and a myriad of other factors. In addition, there are about as many types of crimes as there are individuals to commit them. Hence, the study of crime and the collection of crime data are somewhat challenging, especially in terms of unreported offenses. The fact that many crimes go unreported creates an element known as the "dark figure of crime" — referring to unrecorded crime statistics. The two main methods of recording crime statistics in the United States that also address the dark figure of crime are the National Incident-Based Reporting System (NIBRS) and the National Crime Victimization Survey (NCVS). These methods attempt to address the challenge of collecting accurate crime statistics across the country (Cole and Smith, 2008, p. 42).
The dark figure of crime is important in terms of criminal justice because it creates a challenge to the accurate detection and deterrence of crime. Without knowing the exact statistics related to crime in the country, there is no way to determine whether deterrence strategies are in fact effective. According to Attewell (2011), underreporting by both the public and the police, as well as a lack of crime detection, is responsible for much of the dark figure of crime as it exists today. It is therefore important to attempt to address this challenge, and investigating the effectiveness of data-collecting strategies is equally important in this regard.
The National Incident-Based Reporting System (NIBRS) was created by the FBI in response to the basic shortcomings of the Uniform Crime Reports (UCR). The UCR does not provide an accurate picture of crime statistics in the country because crime reporting is voluntary and the UCR offers only statistics on reported crimes. Another major factor leading to inaccurate reporting is the underreporting by officials for reasons such as department budgets, which are often dependent on positive crime deterrent outcomes.
Whereas the UCR offers uniform data for 29 types of crimes and eight major crimes, the NIBRS provides for police officers to report all crimes committed during an incident rather than only those that are most serious (Cole and Smith, 2008, p. 43). The system also requires complete data on offenders, victims, and the locations of their interactions. The NIBRS provides detailed incident data on 46 offenses within 22 crime categories and also distinguishes between attempted and actually committed crimes. A major advantage of this system is therefore that it addresses the dark figure of crime with greater accuracy than the UCR.
The National Crime Victimization Survey (NCVS) shares this advantage (Cole and Smith, 2008, p. 43), addressing the dark figure of crime by means of interviews with a probability sample of citizens. The Census Bureau has conducted such surveys since 1972. The survey includes a sample of 76,000 individuals in 43,000 households, who are interviewed twice per year for three years to determine whether, and to what extent, they have been affected by crime. This method of determining the crime rate creates an even closer focus on unreported crimes, since victims or potential victims themselves are interviewed. It therefore represents a closer approximation of the actual crime rate than even that provided by the NIBRS.
As rational, learning creatures, human beings tend to create theories to explain the world they observe around them. This has been the case since the earliest humans began to develop their mental faculties. Even the earliest religions and hunting tactics are the result of theorizing about the experienced world. Today is no different. There are many theories people use to explain the world to themselves, and perhaps the most interesting are those that focus on human societies and the interactions of individuals with one another. Among these are social structure theory, Merton's Anomie theory, the broken windows theory, and rational choice theory. Whatever their differences, these theories share the common feature of making observations about humanity and constructing explanations based upon those observations.
Social structure theory, for example, examines how the underlying social structures of society influence human action and thought (Baert and Da Silva, 2010, p. 4). What is notable here is that individuals who are influenced by these structures are generally not aware of them, yet are influenced by them nonetheless. Examples include religious structures, education, constructs of gender, employment, and so on. These structures are usually so deeply integrated into the human psyche that their influence is accepted as a given without conscious awareness.
Merton builds his Anomie theory on the premise of social structure theory, taking it a step further by suggesting that cultural structure and social structure interrelate in such a way that conditions are often created that lead to higher crime rates (Kittleson, 2012, p. 4). As an example, one might consider the United States, where the emphasis on material success is the result of the country's cultural values. At the same time, social limits on access to material success create conditions that lead to an "end justifies the means" viewpoint, resulting in higher crime rates in the pursuit of financial prosperity. The fact that the pursuit of money overrides institutionalized norms for acceptable means of gaining material success is referred to as "a strain toward anomie." Merton uses the term "innovation" to describe those who succumb to the pressure to achieve success through illegitimate means.
The "broken windows" theory, formulated by Wilson and Kelling, also focuses on social influences on the crime rate. It refers to the idea that areas where minor offenses such as prostitution and disorderly conduct are not well controlled by police are also subject to major crimes. Conversely, the control of misdemeanors leads to less crime in that vicinity. This theory was developed during the 1990s to explain the decline in homicides in major U.S. cities. Whereas Merton's Anomie theory considers the drive toward financial success and its influence on crime, the broken windows theory investigates the influence of high rates of minor crime on other types of illegitimate activity. Subsequent investigations have challenged the broken windows idea using collected statistics, adding to the controversy surrounding the theory (Cerda et al., 2009, p. 533).
The rational choice theory, by contrast, is sociological in nature and applies the assumption that people make rational choices to their social and political behavior (Baert and Da Silva, 2010, p. 126). If applied to the Anomie and broken windows theories, one might conclude that rational choice theory is somewhat closer to Merton's Anomie theory. Merton suggests that people make choices influenced by the drive to succeed. The only rational course of action in such conditions may be to resort to illegitimate means of gaining material wealth, since legitimate means are not equally accessible. Taken together, this range of social theories provides a rich — if sometimes daunting — foundation for understanding criminal behavior and for developing new avenues of inquiry.
It is an unfortunate fact of business that many business owners and managers — even those respected in their fields — become perpetrators of corporate crime, misjudgment, or misdemeanor. Martha Stewart is a well-known example of this kind. Although she has certainly redeemed herself in recent years, the lesson remains that a prominent businessperson's reputation can be severely damaged when corporate crime comes to light. In Ms. Stewart's case, one can apply social theories such as consensus or conflict theory in order to shed light on her activities and their consequences. At least two elements of Ms. Stewart's arrest and subsequent sentencing can be related to consensus theory.
Berle's theory of public consensus focuses on conditions within a civil society, where the consensus of the public forms a continuous, if informal, check on the decision-making powers held by managers (Moore and Reberioux, 2010, p. 1113). In other words, managers and other powerful entities within corporations are subject to public scrutiny, which should serve as a deterrent for corporate crime. In a more formal sense, this public consensus is codified within guidelines and rules implemented by entities such as the SEC and other government agencies governing business ethics.
In light of the above, Martha Stewart's arrest for insider trading can be understood as the result of legal and public consensus regarding her guilt. She was found guilty in accordance with the consensus between the public and the SEC concerning what should be permitted to managers in terms of trading practices. Ms. Stewart disregarded these rules and was arrested as a result.
"Examines broken windows and rational choice frameworks"
"Applies consensus and conflict theory to insider trading case"
PBS NewsHour. (2004, July 16). Martha Stewart sentenced.
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