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The Corporation Had an Interactive Complexity Conducive to Catastrophe

Corporate financial crimes can take many forms. Reporting is the essence of accountability, another key concept and responsibility in the work of the manager. The federal government’s regulation of civil aviation began in 1926 with the passage of the Air Commerce Act, the intent of which was to help the infant airline industry reach its full commercial potential through increased safety standards enforced by a federal regulatory agency. The training of pilots, air traffic rules and regulations, certification of aircraft, and the establishment of airways were all among the first responsibilities addressed by this act and were given to the Secretary of Commerce. In 1966 President Lyndon B. Johnson created the Department of Transportation (DOT), which combined all federal transportation responsibilities in order to integrate and facilitate national interests in the distribution and transportation of goods. The DOT would become the agency under which the FAA was placed. However, Civil Aeronautics Board’s (CAB) accident investigation responsibilities were placed under the auspices of the newly formed National Transportation Safety Board (NTSB). The NTSB was given the responsibility of investigating accidents and making recommendations to the FAA, and the FAA, as a branch of the DOT, was given the responsibility of enforcing federal regulations within the airline industry. Congress passed the Airline Deregulation Act of 1978 (ADA of 1978) which…placed oversight of the FAA on the shoulders of the NTSB…The ADA of 1978 also changed the entire airline industry. For example, the ADA of 1978 introduced fare and route competition, and permitted unrestricted entry into domestic carrier marketplace. #RandolphHarris 1 of 19

While the ADA of 1978 was grounded in laissez-faire economics, with the intention of reducing consumer costs through supply and demand pressures, it is also important in the history of regulatory law in that it was a radical departure from previous approaches to fixing perceived shortcomings. The legislation represents a dramatic change in the thrust of regulatory reform. Until 1978, statutory reforms served only to build upon the basic regulatory framework established by the Civil Aeronautics Act of 1938. The 1978 legislation reflected a shift from an incremental to a decremental approach to regulatory reform in that it prescribed relaxation and eventual termination of classical regulatory controls. Unlike previous reform efforts, deregulation was seriously considered as a policy alternative and significantly affected the substance of airline regulatory reform. Within this context, then, the FAA attempted to promote the growth of start-ups like ValuJet while also overseeing their compliance with Federal Aviation Regulations. While success rates for most start-ups were low, ValuJet seemed to be the exception to the rule. In many ways, ValuJet justified the laissez-faire philosophy of the ADA of 1978, and was touted as a model startup company in the age of deregulation. Given that only three of the over 250 airline companies had survived since 1978, the success of ValuJet was important to the FAA (particularly in its capacity of promoting the economic success of the airline industry in the wake of deregulation) and to the several political administrations that supported it (id est, every presidential administration from Carter to Trump). #RandolphHarris 2 of 19

In terms of safety, the FAA had attempted to coax ValuJet into federal compliance rather than imposing stiff penalties. The FAA has inspected ValuJet planes nearly 5,000 times in the three years it was in operation, and had never reported any significant problems or concerns. It has become clear that since the FAA had a vested interest in the economic success of the airline industry as a whole, and ValuJet in particular in the wake of deregulation, they did not adequality pursue ValuJet’s violations. Flight is at the core of a powerful, wealthy industry of companies worth billions of dollars. These corporate giants employ tens of thousands of people and support the economies of entire cities, buy products and supplies from thousands of smaller businesses and important untold foreign money into the U.S.A. Their research labs keep the U.S.A. on the cutting edge of aviation, space and military technology. Their marketers satisfy millions of customers every day, racing to meet the increased demand for air travel. Some FAA inspectors, however, had serious concerns about ValuJet, even though the administration of the FAA did not. Internal reports and memos indicate that there were increasing problems that should have been addressed with regard to ValuJet’s rapid growth, enormous profitability, and subsequently atrocious safety records. However, the FAA did not know what to do with ValuJet. The airline’s safety record had deteriorated almost in direct proportion to its growth. ValuJet pilots made fifteen emergency landings in 1994, then were forced down fifty-seven times in 1995….but record would be surpassed within months with fifty-nine emergency landings from February through May of 1996…an unscheduled landing almost every day. #RandolphHarris 3 of 19

Also, the Department of Defense (DOD) had conducted its own review of ValuJet in consideration of a contract to transport military personnel. The DOD report on ValuJet was comprehensive and empathic: ValuJet was so replete with safety problems that the DOD would not give ValuJet a contract to transport government employees. Among the problems cited in the DOD report of ValuJet was its practice of using temporary solutions to deal with major problems like breakdowns, malfunctions, and accidents. On May 2, just nine days before the ValuJet crash, the FAA produced a nine-page report on the safety records of the various new airlines. Ordered by Anthony Broderick, who was then the FAA’s associate administrator of regulation and certification, the report was prepared by Bob Matthews, an analyst with the FAA’s office of Accident Investigation. Mr. Matthews had two sets of data, one with SouthWest included in the new airline starts, and one without. Contrary to their claims, ValuJet’s safety record was far from exceeding FAA standards. While the other start-ups had one accident annually, ValuJet’s average five. To make matters worse, ValuJet’s accident rate was 14 times the major air carriers, and its serious accident rate was 32 times higher. Additionally, other incidents uncovered by the FAA before the crash of flight 592 included planes skidding off runways, plans landing with nearly empty fuel tanks, oil and fuel leaks that were left unfixed for long periods of time, and inexperienced pilots making errors of judgement. In an internal FAA report on ValuJet, there were nearly 100 safety-related problems. However, the FAA did not officially recommend closing ValuJet down until after the crash of flight 592. #RandolphHarris 4 of 19

While ValuJet’s failure to comply with safety regulations and the FAA’s unwillingness or inability to enforce them are troubling enough, it is evident that the NTSB had made safety recommendations to the FAA long before the crash of flight 592 that could have prevented the accident. To further highlight this illustration, in 1991 the NTSB had recommended that the FAA reevaluate the classification of class D cargo holds. The first recommendation (A-81-012) from the NTSB was that the FAA reevaluate the class D certification of the Lockheed L-1011, with the suggestion that it be changed to class C, which requires extinguishing equipment or changing the liner material to insure fire containment. The second recommendation (A-81-013) was to reevaluate class D cargo holds over 500 cubic feet to ensure that any fires would die from oxygen starvation and that the rest of the plane was properly protected. This recommendation came after a plane operated by Saudi Arabian Airlines in 1980 caught fire shortly after departure. The plane landed successfully, but all 301 occupants died. The fire on the Saudi Arabian Airlines plane started in the class D cargo hold. The FAA responded by stating that the NTSB recommendation should be addressed by making sure that class D cargo liners be made of fire-resistant materials better than ones that were being used at the time. In 1998 American Airlines flight 132 experienced a fire in its class D cargo hold en route to Nashville Metropolitan Airport. After investigating this accident, the NTSB urged the FAA to evaluate the possibility of prohibiting the transportation of oxidizers in cargo compartment without smoke detectors or extinguishing systems. #RandolphHarris 5 of 19

After several exchanges of correspondence, the FAA extinguished systems. After several exchanges of correspondence, the FAA informed the NTSB that its cost/benefit analysis revealed the $350 million price tag attached to this recommendation was not feasible. The FAA took the position that it was not going to force the airline industry to make thee improvements because it felt they were not cost effective in terms of the amount of money required to possibly prevent a small number of accidents. The deaths of 110 people in the crash of ValuJet flight 592 were caused by a number of factors on the individual, institutional, and structural levels of analysis. The proximal cause of the crash was the failure of SabreTech and ValuJet employees to follow safety procedures regarding the preparation, identification, and storage of potentially hazardous materials. Indeed, had these workers correctly capped the oxygen generators, flight 592 might have landed safely in Atlanta. One might also say that the deaths could have been avoided if the FAA had followed the NTSB’s recommendation to equip class D cargo holds with smoke detectors and fire suppression equipment. However, to stop the analysis of the crash here would be a serious error, because, like mot organizational crimes, a complicated nexus of relationships enveloped the actions and omissions that facilitated the crash. Understanding what we term “normal accidents” requires attention to the interaction of multiple failures within and between systems and organizations. #RandolphHarris 6 of 19

Organizational crime theorist have relied on three basic concepts to explain the crimes committed by corporations and governments: organization motivation or goals, opportunity, and social control. The significance of these concepts to a structural-level explanation of state-corporate crime can be encapsulated in the proposition that organizational crime results from a coincidence of pressure for goal attainment, availability and perceived attractive of illegitimate means, and an absence or weakness of social control mechanisms. While each of these three core concepts can be examined on the micro and meso levels of analysis, our theoretical interpretation focuses more on how structural relationships affect organizational practice and policy. Following both state-corporate crime theory and the systems or “normal accidents” theory, we will examine the interaction of the technical, organizational, and structural dimensions of the crash. The goal of capital accumulation can be a highly criminogenic force for organizations. Oftentimes, it is posited, the motivation to secure profit can direct organizational practices and policies in a fashion injurious to consumer and employee safety. As profit-seeking organization, ValuJet and SabreTech employed a number of questionable techniques to maximize profit. ValuJet’s radical cost-cutting procedures included using older planes in various stages of disrepair, outsourcing all its maintenance, and providing very low wages and benefit to employees. #RandolphHarris 7 of 19

SabreTech was also experiencing a high degree of pressure for capital accumulation at the time directly preceding the crash by agreeing to complete their work on the oxygen generators quickly or incur a loss of $2,500 per day. The other organization involved in the crash, the FAA, was not a direct profit-seeking entity, but one designed to both regulate and facilitate the accumulation of capital for airline companies. The FAA’s refusal (on economic grounds) to institute specific safeguards that could have prevented the catastrophe of flight 592 illustrates that injurious consequences that can result not only from pursuing capital, but also from state encouragement of capital accumulation. A major U.S.A. state has been to promote capital accumulation, and the state’s regulatory function must not be so severe as to diminish substantially the contribution of large corporations to growth in output and employments. To further highlight this illustration, while state regulatory agencies have been created to help protect workers (Occupational Safety and Health Administration), the environment (Environmental Protection Agency), and consumers (Consumer Product Safety Commission), these agencies generally do not undermine an industry’s fundamental contributions to the functional requirements of the economy. In like manner, the FAA would not be expected to seriously compromise the contributions that the airline industry makes to local, community, and national economies. The difference, however, between the FAA and other regulatory agencies is its expressly stated dual mandate of both regulating their airline industry and promoting its economic success. #RandolphHarris 8 of 19

The three organizations involved in the ValuJet disaster, while distinct in many ways, interacted in such a way as to produce a great social injury. Like other instances of state-facilitated state-corporate crime, the pursuit of profit was critical in the formulation of the FAA, SabreTech, and ValuJet organizational policy and practice. While organizations that restrain from crime might also have a strong interest in capital accumulation, there was a very distinct set of organizational relationships which led to the crash of flight 592. This particular context was characterized by little social control over the actors and organizations and ample opportunity to commit crimes, which together helped shape organizational definitions of acceptable risk. A basic tenant of organizational crime theory is that low levels of externa social control provide opportunities for organizations to engage in crime. Not only a competitive environment shapes organizational behavior, but also the regulatory environment (autonomy and interdependence), which is affected by the relationship between regulators and the organizations they regulate. The symbolic relationship between those who regulate and those being regulated may vary in both depth and breadth, but ValuJet coupling resulted in an “interactive complexity” conducive to catastrophe. Deregulation and the contradictory role of the FAA as regulator and promoter of the airline industry provides the larger background for ValuJet’s organizational genesis and persistence. We have described the deficiencies and contradictions in the structural control of the airline industry brought about by deregulation, and have argued that this is related to the FAA’s organizational disregard for the unsafe nature of many of ValuJet’s planes and practices. #RandolphHarris 9 of 19

Instead of aggressively mandating the ValuJet place it fleet into compliance with applicable regulations, the FAA held up ValuJet as the poster child of deregulation—a victor among many losers in the market of air travel in the post-deregulation era. In this sense, the FAA’s failure to practice its mandate to make air travel safe for consumers through the vigorous inspection of airline companies and their planes facilitated the crash of flight 592. Following this line of theoretical reasoning, had the FAA enforced federal airline safety regulations (id est, had it exerted formal control over ValuJet and SabreTech), the companies may not have been so indifferent to the quality and safety of their activities and commodities. Such oversight would have created an environment where both SabreTech and ValuJet would be more likely to communicate to their employees that productivity and safety are important and rewardable. In other words, the “normalization” of the deviance that produced the ValuJet “accident” would not have gone unnoticed or unchecked. The series of oversights and confusion regarding the content and condition of the boxed holding the oxygen generators are related to how SabreTech and ValuJet rewarded the behavior of employees that contributed to productivity and efficiency, but not behaviour that contributed to safety. Following this line of reasoning and the available data, then, the unspent and uncapped oxygen containers made it into the airplane because employees of SabreTech and ValuJet were not adequately trained, rewarded, or encouraged to conduct careful and complete inspections of materials to be transported by air. #RandolphHarris 10 of 19

This explanation is consistent with the findings of a number of studies that illustrate the power of organizational culture over the individual and collective actions of employees in such diverse settings as the Holocaust, police violence, and U.S.A. human radiation experiments. Our interpretation is also consistent with the notion of “the normalization of deviance,” a condition in which deviations from technical protocols gradually and routinely become defined as normative. The normalization of rule breaking is applicable to the manner in which the oxygen canisters were processed, but it is institutionally situated as well. Risky practices, which can be an outcome of or a precursor to the normalization of deviance, became defined as acceptable for capital accumulation (ValuJet) and capital facilitation (FAA). While the crash was an undesirable outcome for all the organizations involved, a number of matters related to the cause of the crash were defined as acceptable risks in light of social phenomenon, the sociology of mistake. As we found with the Challenger explosion, the ValuJet crash can also be interpreted as an event related to how environmental and organizational contingencies create operational forces that shape World view, normalizing signals of potential danger, resulting in mistakes with harmful human consequences. Let us return to an extreme conceptual situation that is the true realm of Lawlessness and Economics, namely an economy lacking any government-provided legal institutions or organizations for protection of property rights and enforcement of contracts. #RandolphHarris 11 of 19

Protection of property rights raises some issues. Violation of property rights is a unilateral action taken by the predator; this differs from contractual relationships, which are based on voluntary consent of both or all parties. Indeed, the owner of a property may not even know the identity of the potential thief or extortionist. Then the potential victim must take unilateral steps to deter the potential invader, and to detect and punish one if deterrence fails. The property owner may try to do this directly, diverting resources from other productive uses into protection, or one may hire a specialized protector—a private guard or, again, organized crime. In some countries and at some times the government or its agents may be the thieves who try to extract as much as they can from the citizens for their own consumption. The citizens cannot hope to resist the government’s coercive power with force, but may attempt to hide their assets. Also, the prospect that the fruit of one’s efforts will be taken by the government will be distinctive. Anecdotal evidence suggests that the various alternative institutions of governance can be very effective. Only a handful of documents contain[ing] allegations of misconduct in the archives of the correspondence among Maghribi traders. In the numerous transactions that occur every year among the 2000 members of the New York Diamond Dealers’ Club and the numerous non-members who trade there, only 30-40 trades result in a judgment from the arbitration system of the club. Exact figures are not available for the total number of transactions or the number of cases where the defendant refuses to pay the judgment, but a safe guess is that the former is in the hundreds of thousands and the latter in single digits. #RandolphHarris 12 of 19

Some may regard this as evidence for fundamental goodness of human nature. However, the record of failures of other less-well-designed institutions of governance suggest otherwise. Less developed countries with poor property-right and contract-enforcement systems fail to attract foreign investment and sustain growth. Thus we should conclude that institutions can be effective deterrents to opportunism, but that in their absence, beneficial economic activity is likely to be hindered by a well-grounded fear of being cheated. While land, labour, raw materials and capital were the main factors of production in the Second Wave economy of the past, knowledge—broadly defined here to include data, information, images, symbols, culture, ideology and values—is now the central resource of the Third Wave economy. As we have seen, the appropriate data, information and/or knowledge make it possible to reduce all the other inputs used to create wealth. However, the concept of knowledge as the “ultimate substitute” is still not widely grasped. Most economists and accountants are mystified and put off by this idea because it is hard to quantify. What makes the Third Wave economy revolutionary is the fact that while land, labour, raw materials and perhaps even capital can be regarded as finite resources, knowledge is for all intents inexhaustible. Unlike a single blast furnace or assembly line, knowledge can be used by two companies at the same time. And they can use it to generate still more knowledge. Thus, Second Wave economic theories based on finite, exhaustible inputs are inapplicable to Third Wave economies. #RandolphHarris 13 of 19

While the vale of a Second Wave company might be measured in terms of its hard assets like buildings, machines, stocks, and inventory, the vale of successful Third Wave firms increasingly lies in their capacity for acquiring, generating, distributing and applying knowledge strategically and operationally. The real value of companies like Compaq or Kodak, Hitachi or Siemens, depends more on the ideas, insights and information in the heads of their employees and in the data banks and patents these companies control than on the trucks, assembly lines and other physical assets they may have. Thus capital itself is not increasingly based on intangibles. UN Framework Convention on Climate Change (UNFCCC) has a goal of cutting the emissions of carbon dioxide in order to keep the global temperate increase within at least two degrees Celsius compared to the preindustrial period. However, there is still no clear and internationally accepted scientific evidence that emissions of CO2 is the major factor of global warming—on the contrary, we hear a lot of arguments against this assumption. Even some prominent champions of the fight with C)2, beginning with Al Gore, have openly admitted that it may not be so. The data published by experts including James Hansen, director of NASA’s Goddard Institute for Space Studies and “the grandfather of the global warming theory,” shows that gases other than CO2 are responsible for most—and currently maybe even for all—of the global warming, and that major greenhouse has is methane. Furthermore, there is a lot of skepticism about global warming. #RandolphHarris 14 of 19

The negotiations framework based on shaky presumptions is doubtful by definition. At least it would be safe to say that, to draw a sound conclusion on whether the road has been chosen is right or not, much more preliminary scientific work has to be done. However, not surprisingly, once the UN talk machine has started, it cannot be stopped. Currently, the goal is to reduce global carbon dioxide emission by 45 percent by 2023 from 2010 levels, and reach net-zero emission by 2050. Many countries will argue, however, that they cannot accept binding obligations because they have the right to develop and that, as the problem itself was caused by the industrial development of the West, it is exactly the West tht has to take the major responsibility for the emission cuts. These reductions are associated with unacceptable sacrifices in terms of growth and development. Other countries may not even be willing to compromise and go along with this scheme. However, developed countries will have to reduce their emission in absolute terms on a mandatory basis. Developing countries will make reductions on a voluntary basis, mostly targeting the levels of emissions per unit of GDP. The West will have to support those reductions financially and technically—by the way, allocating a lot of funds in times when its own finances are in disarray. This is it—a very asymmetrical deal. A more favorable combination for the West is hardly feasible. As this scheme is being launched, the West knows it is getting ready to bear the heaviest environmental burden in terms of both reductional levels and financing. #RandolphHarris 15 of 19

Directories of family agencies of all types are testimony to the variety of ways in which interested people attack what they conceive to be the problems of the family. While proposals are heard from time to time that these many family agencies ought to be co-ordinated, such proposals have to be carefully scrutinized before the can be properly evaluated. On the one hand, it could mean subordination to some authoritatively ordained set of ends; on the other hand, it could mean further freeing the channels of communication among agencies, so that experience could be more fully shared and consensus widened, with decisions involving all arrived at through compromise or synthesis of recognized, conflicting interests. The adoption of the annual budget of a community chest or council of social agencies is an excellent model of such decision-making. It involves politics, strife, compromise, and restless revision of goals and means, but it does create a kind of working unity—even the common understanding of respected differences—which is faithfully believed by Americans to be superior to the superficial appearance of harmony found in an organization dominated by a supreme value and a ruling elite which professes to embody it. Whether it is the society that moulds the family, or whether it is the other way around, there is much evidence for supposing the same correlation between the democratic family and democratic society as between the authoritarian family and authoritarian society. Full and free participation by wife and children—to the limits of their capabilities—in the discussion and decisions affecting the whole family makes the family members willing to dissent and prepare them to respect dissent in others. Sympathetic consensus and agreement to disagree are essential to our characteristic voluntary associations. #RandolphHarris 16 of 19

There are also other functions of the family: status placement and cultural continuity. By this, we mean identification of the person through one’s family with the social class into which one was born or hopes to rise, and indoctrination in the subculture of that class. To accept such concepts seems to imply acceptance of the family as a permanent device for insuring that advantageous and disadvantages will be passed on from one generation to the next. That families have so behaved is manifest; to assume that such behavior is inevitable and necessary is neither manifest nor helpful analytically. Rules against nepotism are broken, but they are also kept, and social mobility is almost demanded of next generation. True confessions of conduct disorder should come from deep conviction and not compulsion. It should be made only to God, if the conduct disorder is one only known by God; to a man personally, and in private, when the conduct disorder is against a man; and to the public only when the conduct disorder is against the public. Confession should never me made under the impulse of a compelling emotion but should be a deliberate act of the volition—choosing the right and then putting things right, according to the will of God. That psychopathological offender’s kingdom gains by public confession are evident from the devices the enemy uses to push men into them. Psychopathological offenders drive a believer into conduct disorder which they forced one to commit—contrary to one’s true character—in order to make the conduct disorder which they forced one into a stigma upon on for the remainder of one’s life. #RandolphHarris 17 of 19

Ofttimes the “conduct disorder” confessed have its rise in the believer from the insertion by wicked spirits of feelings as consciously abhorrent and loathsome as were the former “conscious” feelings of Heavenly purity and love one was experiencing when one declared that one knew of “no conduct disorder to confess to God,” or “no rising of a psychopathological impulse” whatever—which had led one to believe in the complete elimination of all conduct disorder from one’s being. The counterfeit manifestations of the divine presence in the body in agreeable and Heavenly feelings can be followed by counterfeit feelings of sinful things wholly repugnant to the volition and central purity of the believer—who is as faithful to God now in his hatred to conduct disorder as in the days when he revelled in the sense of purity given consciously to his bodily frame. The ground of being is closely conducted with the depth-dimension. As a symbol, the ground of being points to the mother-quality of giving birth, carrying, and embracing, and, at the same time, of calling back, resisting independence of created, and swallowing it. “Ground,” therefore, evokes the image of the Earth, that upon which we stand, which underlies and sustains us. Everything that is rests upon being-itself as its ground, for, in order to be, a being must share in being-itself, must receive its being from the infinite source of being. Immediately one is tempted to conceive the ground being as cause or substance. #RandolphHarris 18 of 19

However, if God is called the cause of being, He is enmeshed in an endless but finite chain-reaction of causes and effects, for effects drag causes down to their own level. If God is termed the substance of being, it means that He is imprisoned in accidental beings, and they, in turn, forfeit their independence and freedom. We must accept a symbolic sense for cause and substance which is free from the finiteness of the literal sense and which relates beings to God without diminishing His infinity. Symbolically, God is prima causa and ultima substantia in the sense that God is the cause of the entire series of causes and effects, He is the substance underlying the whole process of becoming. As symbols, cause and substance amount to the same thing—the “underlying,” the ground of being. Ground, therefore, oscillates between cause and substance and transcends both of them. The notion of ground leads to the notion of abyss as naturally as the image “mountain” conjures up the image “valley.” From the viewpoint of finite being, the ground of being as the source and power of being is creative, positive, and the mysterium fascinosum. However, by its very inexhaustibility and the unlimited force of its power, the ground of being infinitely surpasses finite being. In this sense, it is negative; it is tremendum. For finite being is lost, swallowed up in the bottomless depths of the ground of being. The ground becomes the abyss. #RandolpHarris 19 of 19


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Despite—or perhaps because of—the great public and policy interest, organized crime remains a fuzzy and contested umbrella concept. The understanding of organized crime has since the 1920s shifted back and forth between two rivaling notions: a set of stable organizations illegal per se or whose members systematically engage in crime; and a set of serious criminal activities, particularly the provision of illegal goods and service, mostly carried out for monetary gain. The general public, the media, and most policy-makers primarily use the expression “organized crime” to refer to criminal organizations, such as the Sicilian and America Cosa Nostra, the Japanese Yakuza, Colombian and Mexican drug cartels, and other large-scale criminal grounds around the World though to have a hierarchical lasting structure. However, even some of your local news stations may be involved in organized crime. There exists variation in the skills and techniques that go along with crimes that are committed within an organizational context. Organizational (id est, corporate) and state-authority occupational crimes tend to take on relatively sophisticated forms. To further highlight this illustration, we found evidence of complex and collective offending in our analysis of the savings and loan scandal. We grouped these offenses into three categories: desperation dealing, collective embezzlement, and cover-ups. Desperate dealing took shape as a series of complicated, high-risk investment and loan actions employed by executive to save their sinking financial institutions. #RandolphHarris 1 of 19

These practices included writing multiple loans to insolvent borrowers, inadequate loan underwriting practices, and other “go for broke” investment schemes. The term collective embezzlement refers to self-interested “looting” or unauthorized spending sprees that corporate executives pursued using investors’ money. The authors contend that extravagant parties and high ticket purchase were the order of the day as executives sought to enjoy the last days of their sinking business enterprises. Once things began to come unglued, cover-up practices were used to keep their insolvent ships afloat. These scams ran the gamut from criminal accounting practices (id est, misrepresenting capital reserves or capital-to-assets ratios) to money laundering, to hush money that was delivered to high-ranking state authorities and policy makers. Crimes that are committed by state agencies or institutions also tend to take on an elaborate character. To further highlight this illustration, numerous discussions, including one which documents how Nazi Germany and other rogue states have systematically embarked on genocidal plans to exterminate certain classes or creeds of people. Mr. Hitler’s “final solution for the Jewish problem” included a concerted effort of persecution, mass murder, and cover-up. Similarly, the hearings of the Iran-Contra affair of the 1980s taught us that our own government is capable of hatching and carrying out some complex and especially devious criminal plans. By comparison, acts of professional occupational crimes or individual occupational crime tend to be much more simplistic. #RandolphHarris 2 of 19

More often than not, the employee simply pockets the money or materials and makes little or not effort to cover his or her tracks. A similar trend has been observed among embezzlers. The same can be said about most crimes that are perpetrated by professionals. For example, we will discuss how pharmacists who steal and use prescription drugs on the job tend to rely on simple and predictable routines. White-collar crime and criminals are spread throughout the landscape of the American industrial complex. No one type of business/industry, or even any one type of job role (secretaries versus executives), is disproportionately represented in the available samples of known offenders. In light of this observation, researchers have begun to adopt a more individual-level focus, targeting the role that occupational settings play in the spread of deviance. Companies that operate in autonomous space, free of external social and regulatory control, will be more likely to engage in criminal behavior. This type of free-wheeling, self-regulatory work environment allows profit motives to blur the lines between acceptable and unacceptable “business practices.” High levels of internal or external competition and cut-throat inter-office or industry-level politics appear to exacerbate matters. #RandolphHarris 3 of 19

Organizational offenders are disproportionately, European-American, middle-aged men who possess modest to high levels of social capital. In our case files, there are 968 white-collar offenders who were sentences in seven U.S.A. district courts over a 3-year period. The bast majority of the offenders were men. The sample was also lopsided in terms of race, as better than 75 percent of the subjects were European-America. The average offender was well into his thirties and several offense types (antitrust, securities, tax, and bribery offenses) were dominated by offenders over 40 years of age. The participant’s elevated social capital was evident by the fact that most were salaried employees with modest financial assets. Most of the perpetrators were married homeowners with college degrees. Many occupied supervisory positions in their organization. Organizational offenders do not usually have squeaky clean pasts. We found that 36 percent of the 965 white-collar criminals in our sample had at least one prior arrest and 67 percent had been arrested more than once in the previous 8 years. Of the repeat offenders, 33 percent recorded five or more arrests. We found little evidence of criminal specialization. Of the 465 repeat offenders, only 15 percent were exclusively arrested on white-collar charges. Repeat offenders tended to stay away from violent crimes, but they often drifted into property or public order offering. #RandolphHarris 4 of 19

However, the longer the person’s rap sheet, the more likely that one would face additional white-collar charges. Faced with comparisons to traditional street criminals, using arrest as indicator of offending, white-collar criminal careers begin and end later, and include smaller numbers of recorded criminal events, than do those of street criminals. However, they are similar to common crime careers in that they are unlikely to evidence a high degree of specialization, and that offenders seem to age out of crime. Moreover, the same variables that predict recidivism in street criminals (id est, marital status, history of drug use, prior record, gender, employment states) are predictive recidivism in white-collar offenders. Criminal intent is a difficult concept to nail down in the case of most crimes committed with an organizational context. This is partly a result of the fact that there are so many cognitive and behavioral variations present in these criminal events. Different jobs take on different cultural forms. For example, the term “hawk jobs” refer to those work environments that stress entrepreneurial creativity. Persons working in this type of environment are drawn toward innovative offenses directed toward enhancing their self-image among peers. Academics and business owners are examples of hawks. The term “donkey jobs” refers to those environments that are known for their “isolated subordination.” Deviance in this workplace manifests itself as sabotage or resentment and stems from low job satisfaction. #RandolphHarris 5 of 19

Some cashiers and non-unionized line workers provide good examples of donkeys. The term “vulture jobs” characterize occupations with loose work groups and high levels of individual-level decision-making power (exempli gratia, outside salespeople). These persons will involve themselves in self-interested abuses intended to enhance their standing in the incentive-based reward system. Finally, “wolfpack jobs” were described as environments with tight work groups, for example, union employees and police officers. These persons will engage in habitual and collective forms of deviance intended to enhance group solidarity and camaraderie. Instrumental motivation is a cornerstone of crimes that are committed within an organizational context. Regardless of whether the outcome is monetary or physical loss, most of these crimes can be traced back to greed or a thirst for power. The vast majority of the incarcerated embezzlers in our sample suffer from an “unsharable problem.” This might include a self-imposed financial pinch resulting from promiscuous or seedy pursuits away from the job, sudden losses from a part-time business or investment venture, or the inability to finance an ever-increasing social status. Faced with the knowledge and skills of their jobs, these embezzlers came to exploit their position of trust as a means of alleviating the problem. We have also observed a slightly different motivational pattern among the female embezzlers; namely, the women tended to steal in order to provide for their families. #RandolphHarris 6 of 19

Analyses of corporate and/or state violators reveal that executives and politicians tend to commit their crimes to keep pace with the competition or to protect their own position within the organization. For example, most agree that former President Clinton committed perjury in an effort to avoid the political fallout associated with having extramarital sex in the White House. Regardless of the gender or organizational standing of the offender, these tend to be persons who commit their crimes because they see them as a way of alleviating some sort of specific threat. It is difficult to assess the amount of planning that goes into the commission of organizational crimes, since most of them come about as exaggerations of normal operating procedures. In the end, onlookers have difficult discerning where normal planning and implementation ends and where illegal and unethical cognition and behaviours begins. Persons who steal from their employers tend to construct their thefts as fringe benefits or simple extensions of normal business practices. To further highlight this illustration, a bank embezzler might claim that they simply loaned him or herself the money. A person who steals scrap metal from a manufacturing plant might say that they were simply taking out the trash. By equating these thefts to everyday business, it is difficult to determine how much planning exists. For decades, scholar have maintained that normative neutralizations play a central part in the initial and repeated offending that takes place among organizational offenders. #RandolphHarris 7 of 19

More often than not, the source of these rationalizations and justifications can be found in the very workplace from which the offending emanates. To further highlight this illustration, in our seminal study of embezzlers, we use the term “vocabularies of adjustment” to describe how thieves routinely implied a sense of ownership or borrowing over the money that they stole as a means of denying their guilty mind. Some manufacturing employees adhere to a “cognitive mapping of property. Most of the materials in the factor are afforded a status as either personal or company property and thus rarely subject to theft. However, other property is afforded a status as “property of uncertain ownership” and thus fair game for theft. The workers reason that taking scrap material or component parts is not the same as taking a coworker’s wallet or an assembled television set in a box, but it is. You know, this really puts workplace theft into perspective. Stealing from work is a lot like if you went to a friend’s house and walked out with a glass, or their silverware. Through adequate education and upraising children properly and putting things in perspective, we can really train them to be model citizens. A tangential set of cognitive excuses has been uncovered among deviant professionals and corrupt state authorities. Blue ribbon commissions charged with investigating police misconduct have repeatedly unearthed evidence of a mindset in which habitual offenders deny criminal responsibility for their actions. The rogue officers claim that they were simply playing within the rules of aggressive crime fighting or explicitly following orders. #RandolphHarris 8 of 19

We have documented how workgroups norms centering around the need for effective and efficient patient care can lead nurses to excuse their repeated theft of hospital supplies and medications. Irrespective of the profession, we find that employees do not have to look or far to find the normative definitions that they use to neutralize their acts of wrongdoing; more often than not, they are derived from established workgroup norms or accepted business practices. Institutions are the overarching framework of rules and constraints, formal and informal, that govern interactions among individuals; constitutions and social norms are examples. Organizations are groups of individuals that operate within the general framework of institutions, and implement the rules and norms of the institutions; examples are legislatures, political parties, and universities. Of course there are interactions and feedbacks between institutions and organizations. The rules and constraints imposed by institutions do not eliminate all freedom for organizations to act, and since organizations have members with differing interest and abilities, interesting issues of “the play of the game” at this level must be analyzed. Institutions can then evolve to alter the rules of the game so as to achieve better outcomes from the play at the organizational level. Finally, individuals interact within the frameworks set up b both institutions and organizations, and these transactions have their costs of information, commitment, and so on. #RandolphHarris 9 of 19

Institutions and organizations attempt to economize on transaction costs, but usually fall short of optimality, especially when changing economic and technological conditions require changed or new institutions. There are two categories of reasons for the long lags and bottlenecks in the process of institutional change: first, resistance by powerful special interests with stakes in the old system; and second, multiple equilibria and historical accidents. A regularity in social behaviour that is agreed to by all members of society, specifies behaviour in specific recurrent situations, and is either self-policed or policed by some external authority. Thus, the strategies that the individuals choose, include aspects of the play of the game as well as the rules, and also specifies the equilibrium that is to be played. An individual’s expectation of the response to one’s action is often an important part of the institutional environment; that is, the institutional environment also serves to coordinate beliefs and select equilibria. At the (highest or most basic) level stand informal institutions, such as religion, social customs and norms. These are slow to change, over the timescale of centuries or millennia. At the second level is the institutional environment, consisting of formal rules, such as constitutions and laws. The timescale of evolution of these is measured in decades. The play of the game occurs at the third level, and this includes the choice of appropriate modes of governance for each type of transaction, or organization, the aim being to economize on transaction costs. #RandolphHarris 10 of 19

Finally, the fourth and lowest level contains routine economic activities such as production, employment, market equilibration. Societies make conscious efforts to instill some norms into their members, enlisting the help of parents, teachers, media, and leaders of opinion because norms and other informal institutions have mainly spontaneous origins and have a lasting grip on the way society conducts itself. Man of the norms pertain to civic duties such as voting, but others pertain to honestly in economic matters. This process of social conditioning and education can respond to changing needs much faster than the evolutionary timescale. Many of the communities facing collective-action problems treat laws, like prices, as incentives for behavior. Various branches of civil law—liability, tort, contract, property—govern situations where two or more individuals can enter into a contractual relationship, explicit or implicit, as well as ones where one person’s actions have spillover effects on others without any voluntary agreement on their side. These legal rues affect the incentives of individuals to take actions, or to refrain from actions, that carry benefits or costs to others, and that in turn affect overall economic outcomes and efficiency. Many changes in the society’s knowledge system translate directly into business operations. This knowledge system is an even more pervasive part of every firms environment than the banking system, the political system, or the energy system. #RandolphHarris 11 of 19

Apart from the fact that no business could open its doors if there were no language, culture, data, information and knowhow, there is the deeper fact that of all the resources needed to create wealth, none is more versatile than knowledge. Take Second Wave mass production. In most smokestack factories it was inordinately expensive to change any product. It required highly paid tool-and- die makers, jig setters and other specialists, it and resulted in extended downtime during which the machine were idle and ate up capital, interest and overhead. That is why cost per unit went down if you could make longer and longer runs of identical products. This gave rise to the theory of economies of scale. However, the new technology stands Second Wave theories on their heads. Instead of mass production, we are moving towards de-massified production. The result is an explosion of customized and semicustomized products and services. The latest computer-driven manufacturing technologies make endless variety possible and inexpensive. New information technologies, in fact, push the cost of diversity toward zero and reduce the once vital economies of scale. Or take materials. A smart computer program hitched to a lathe can cut more pieces out of the same amount of steel than most human operators. Making miniaturization possible, new knowledge leads to smear, lighter products, which, in turn, cuts down on warehousing and transportation. #RandolphHarris 12 of 19

Up-to-the-minute tracking of shipments—id est, better information—means further transportation savings. New knowledge also leads to the creation of totally new materials ranging from aircraft composites to biologicals and increases our ability to substitute one material for another. Deeper knowledge now permits us to customize materials at the molecular level to produce desired thermal, electrical or mechanical characteristics. The only reason we ship huge amounts of raw materials like bauxite or nickel or copper the planet is that we lack the knowledge to convert local materials into usable substitutes. Once we acquire that know-how, further drastic savings in transportation will result. In short, knowledge is a substitute for both resources and shipping. The same goes for energy. Nothing illustrates the substitutability of knowledge for other resources better than the recent breakthroughs in superconductivity, which at a minimum will drive down the amount of energy that now must be transmitted for each unit of output. In addition to substituting for materials, transportation and energy, knowledge also saves time. Time itself is one of the most important of economic resources, even though it show up nowhere on a Second Wave company’s balance sheet. Time remains, in effect, a hidden input. Especially when change accelerates, the ability to shorten time—for instance, by communicating swiftly or by bringing new products to market fast—can be the difference between profit and loss. #RandolphHarris 13 of 19

New knowledge speeds things up, drives us toward a real-times, instantaneous economy, and substitutes for time. Space, too, is conserved and conquered by knowledge. GE’s Transportation System division builds locomotives. When it began using advanced in formation processing and communications to link up with its suppliers, it was able to turn over its inventory twelve times faster than before and to save a full acre of warehouse space. Not only miniaturized products and reduced warehousing but other savings are possible. Advanced information technologies, including document scanning and new telecommunications capacity based on computers and advanced knowledge, make it possible to disperse production out of high-cost urban centers and to reduce energy and transport costs even further. There is currently an economic war going on. It is the war for dominance and wealth on a global scale, and political establishments and business elites are involved. It is also the fight to survive, involving myriads of small and medium businesses and hundreds of millions of ordinary working people. It is one of the strangest wars in World history. America is fighting at full strength, but unlike previous wars, even economic, America does not want its rival to suffer a complete defeat. America needs to remain rich, economically and socially stable, and technologically-progressive, it also needs to rebound and become cash abundant. America has to remain sufficiently healthy and strong and keep on running. #RandolphHarris 14 of 19

This war for global dominance is a real war. The country that is the superpower is the one who gets to determine the rules of conduct on the global economic arena and the ways key international issues are approached. This is important because some governments are predatory or kleptocratic. As time goes by, America needs to keep the situation on the battlefield under control. Bargaining power, though absolutely nonquantifiable, exerts decisive influence on how key international economic issues are handled. To maintain status as a World Superpower, it is important for citizens become mature and competent individuals. There are extrinsic conditions for the development of competent personalities other than the kind of income possessed, and there are conditions intrinsic to family structure which may give even children within the same family differing starts in life. If individuals are to enjoy equal opportunity for the development of competent personalities, and this is limited by the resources of their families, then the objective of a community sharing such an ideal must be to provide these families, if not unlimited availability, at least some fair minimum of such resources. In general, this has been a guiding principle, though sometimes none too consciously, for the development of the agencies concerned. Equality before the law has been, of course, the bedrock principle upon which all these protective activities have been founded. #RandolphHarris 15 of 19

Pursuit of this ideal virtually require the state to take over and monopolize the function of securing justice for individuals when they were injured or threatened by other individuals, rather than leaving retribution to private feuds. The state taking over the elementary protection of life, liberty, and property could thus be regarded as the earliest and most irrevocable of transfers to another institution of a family function. There is, however, a function centered on family life which was in the hands of another institution even earlier than that, although it is not a function which the family itself ever possessed. That is the legitimation in the eyes of the community, through ritual and certain binding commitments, of marriage and parenthood. While the enforcement of these responsibilities has long since been concentrated in the state, in a society such as ours where there are so many faiths and churches the element of ritual with which these monogamic commitments are solemnly chartered by the community still remains conspicuous. The ritual testifies to the view that from its beginning any family is as much the creation and concern of the community as of its principals. In addition to formal legitimation of marriage (and of course of its rupture through divorce), there is a large area of family law, exempli gratia, inheritance of estates, administered through the appropriate legal institutions. The legal responsibility of a husband for the economic support of his wife, his children up to certain ages, and even his parents and siblings, remain in effect, though some of the economic burden has been taken over by family agencies. #RandolphHarris 16 of 19

Specific provisions vary widely among the states. Proposals for change in family law are more often concerned with codification on a national basis than with release of family members from their responsibilities. Indeed the notion, however fallacious, that by stringent limitation of divorce, family stability is somehow conserved, has served to arrest the liberalization that might narrow the gap between profession and practice; while efforts to move into a therapeutic phase, exempli gratia, family courts, have been largely resisted. How the powers of psychological offenders counterfeit the presence of God to those ignorant of their devices may be somewhat as follows. At some moment when the believer is yearning for the sense of God’s presence, either alone or in a meeting, and certain conditions are fulfilled, the subtle foe approaches, and wrapping the senses round with a soothing, lulling feeling—sometimes filling the room with light, or causing what is apparently a “breath from God” by a movement of the air—either whispers, “This is the presence you have longed for,” or leads the believer to infer that it I what one has desired. Then, off one’ guard, and lulled into security that the psychopathological offender is far away, some thoughts are suggested to the mind, accompanied by manifestations which appear to be divine. A sweet voice speaks, or a vision is given, which is at once received as “divine guidance,” given in the “divine presence,” and hence beyond question as from God. If accepted as from God when actually from the psychopathological offender, the first ground is gained. #RandolphHarris 17 of 19

The human is now sure that God has bidden one do this or that. One is filled with the thought that one has been highly favored of God and chosen for some high place in His Kingdom. The deeply hidden self-love is fed and strengthened by this, and one is able to endure all things by the power of this secret strength. One has been spoken to by God! One has been singled out for special favor! One’s support is not within—based upon one’s experience—rather than established upon God Himself and the written Word. Through this secret confidence that God has specially spoken to one, the human becomes unteachable and unyielding, with a beneficial trending on infallibility. One cannot listen to others now, for they have not had this “direct” revelation from God. One is in direct, special, personal communion with God, and to question any “direction” given to one becomes the height of sin. Obey one must, even though the direction given is contrary to all enlightened judgment and the action commanded is opposed to the spirit of the Word of God. In brief, when the human at this stage believes one a “command” from God one will not use one’s reason, because one thinks it would be “carnal” to do so. “Common sense” is lack of faith, and therefore sin; and “conscience,” for the time being, has ceased to speak. Some of the suggestions made to the believer by psychopathological offenders at the time may be: “You re more advanced than others”—working to blind the soul to sober knowledge of itself. #RandolphHarris 18 of 19

“You are a special instrument for God”—working to feed self-love; “You are different from others”—working to make one think one needs special dealing by God; “You must take a separate path”—a suggestion made to feed the independent spirit; You must give up your occupation and live by faith”—aiming at causing the believer to launch out on false guidance, which may result in the ruin of one’s home, and sometimes the work for God in which one is engaged. All these suggestions are made to give the human a false concept of one’s spiritual state; for one is made to believe one is more advanced than one actually is, so that one may act beyond one’s measure of faith and knowledge (Romans 12.3), and consequently be more open to the deceptions of the beguiling foe. Ontological categories of time, space, causality, and substance are the basic forms of thought and being through which the mind makes contact with reality. Since they are forms of finitude, they express a mixture of being and nonbeing, positive and negative elements which we discuss in terms of courage and anxiety. Humans’ experience of time includes the anxiety of transitoriness and the courage of a self-affirming present. Space is not only physical, but also social—a sphere of influence, a place in the framework of value and meaning. The anxiety of insecurity arises from the danger of losing one’s place, only to be met by the courage to carve out a niche for oneself. Causality brings forth the anxiety of contingency, the awareness that one does not possess one’s own power of being. However, courage is there too, for causality affirms the reality of being by pointing to its sources in the power of being. Substance expresses the anxiety of change, of loss off identity, along with the courage to affirm the finite by laboring to produce cultural creations. Significance expresses the union of being and nonbeing in everything finite. They articulate the courage which accepts the anxiety of nonbeing. The question of God is the question of the possibility of this courage. #RandolphHarris 19 of 19


No appointment needed! Cresleigh Havenwood features four distinct floor plans ranging from 2,293 – 3,377 square feet and offering up to five bedrooms. Each plan has been thoughtfully designed and includes great features such as single story homes, guest suites, optional offices, garage workshops, and more! Get the most out of your new home with Cresleigh’s All Ready smart home featuring all the connectivity needed to keep your house running. Best of all, each Cresleigh home comes with owned solar included!

Located off of Virginiatown Road and McCourtney Road, residents of the 83 homesites of Cresleigh Havenwood will benefit from a brand new neighborhood in the charming City of Lincoln. Palo Verde Park, is just down the street and there’s plenty of recreation to take part in all around town.















































































































































