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Questions and Answers
What is the primary goal of regulatory agencies?
What is the primary goal of regulatory agencies?
What does the proactive nature of the regulatory justice system emphasize?
What does the proactive nature of the regulatory justice system emphasize?
Which of the following is NOT a core practice of the regulatory justice system?
Which of the following is NOT a core practice of the regulatory justice system?
What does the Sarbanes-Oxley (SOX) Act primarily address?
What does the Sarbanes-Oxley (SOX) Act primarily address?
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What was a major consequence of the Sarbanes-Oxley (SOX) Act?
What was a major consequence of the Sarbanes-Oxley (SOX) Act?
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What factor contributes to the restriction of legitimate access in regulations?
What factor contributes to the restriction of legitimate access in regulations?
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According to John Braithwaite's argument, what is essential for effective crime control?
According to John Braithwaite's argument, what is essential for effective crime control?
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Which of these statements about regulatory agencies is false?
Which of these statements about regulatory agencies is false?
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What is the primary goal of regulatory agencies within the regulatory justice system?
What is the primary goal of regulatory agencies within the regulatory justice system?
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Which perspective of the regulatory system focuses on the control of economic institutions?
Which perspective of the regulatory system focuses on the control of economic institutions?
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Which regulatory model assesses the cost-benefit strategy of regulations?
Which regulatory model assesses the cost-benefit strategy of regulations?
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What does the Conflict Model suggest about the role of regulatory bodies?
What does the Conflict Model suggest about the role of regulatory bodies?
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What is a key characteristic of the Rational – Legal Model?
What is a key characteristic of the Rational – Legal Model?
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How do corporations generally view regulations according to the Economic Model?
How do corporations generally view regulations according to the Economic Model?
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According to the Justice Model, what is the emphasis in dealing with offenders?
According to the Justice Model, what is the emphasis in dealing with offenders?
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What perspective does Sutherland’s view align with in the regulation of white-collar crime?
What perspective does Sutherland’s view align with in the regulation of white-collar crime?
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How do ethics training programs in business schools aim to affect student behavior?
How do ethics training programs in business schools aim to affect student behavior?
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Which of the following strategies aims to increase the likelihood that offenders will be caught?
Which of the following strategies aims to increase the likelihood that offenders will be caught?
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What is a method to reduce the benefits of crime?
What is a method to reduce the benefits of crime?
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What is a potential benefit of a company's ethics code?
What is a potential benefit of a company's ethics code?
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What does the Situational Crime Prevention Theory emphasize regarding white-collar crime?
What does the Situational Crime Prevention Theory emphasize regarding white-collar crime?
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Which situation fosters criminal behavior and may need to be mitigated according to Situational Crime Prevention Theory?
Which situation fosters criminal behavior and may need to be mitigated according to Situational Crime Prevention Theory?
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Which approach helps eliminate rationalizations used by offenders to justify their actions?
Which approach helps eliminate rationalizations used by offenders to justify their actions?
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What role does the public relations department play in a company facing unethical actions?
What role does the public relations department play in a company facing unethical actions?
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Which of the following is an example of a method to strengthen internal controls?
Which of the following is an example of a method to strengthen internal controls?
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Which of the following is NOT one of the five methods potential offenders use to assess criminal opportunity according to SCPT?
Which of the following is NOT one of the five methods potential offenders use to assess criminal opportunity according to SCPT?
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What is an essential aspect of creating a prosocial organizational environment?
What is an essential aspect of creating a prosocial organizational environment?
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How does Situational Crime Prevention Theory aim to discourage criminal offenses?
How does Situational Crime Prevention Theory aim to discourage criminal offenses?
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In the context of business practices, what is often a challenge regarding immoral actions?
In the context of business practices, what is often a challenge regarding immoral actions?
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What strategy can be employed to increase oversight in an organizational context?
What strategy can be employed to increase oversight in an organizational context?
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Which of the following statements is NOT an aspect of Situational Crime Prevention Theory?
Which of the following statements is NOT an aspect of Situational Crime Prevention Theory?
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How do social networks contribute to the handling of offenders?
How do social networks contribute to the handling of offenders?
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What is a primary reason that investigating white-collar crimes is challenging for traditional law enforcement agencies?
What is a primary reason that investigating white-collar crimes is challenging for traditional law enforcement agencies?
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Which of the following is NOT a benefit of Non-Prosecution Agreements (NPAs) and Deferred Prosecution Agreements (DPAs)?
Which of the following is NOT a benefit of Non-Prosecution Agreements (NPAs) and Deferred Prosecution Agreements (DPAs)?
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How do NPAs and DPAs protect financial markets?
How do NPAs and DPAs protect financial markets?
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What is one of the criticisms of using NPAs and DPAs?
What is one of the criticisms of using NPAs and DPAs?
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What positive impact do NPAs and DPAs have on corporations involved in investigations?
What positive impact do NPAs and DPAs have on corporations involved in investigations?
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Which argument supports the use of NPAs and DPAs regarding industry stability?
Which argument supports the use of NPAs and DPAs regarding industry stability?
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What is a reason provided for the inherent complexity of white-collar crimes?
What is a reason provided for the inherent complexity of white-collar crimes?
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What is a contributing factor to the difficulty in addressing white-collar crime for law enforcement?
What is a contributing factor to the difficulty in addressing white-collar crime for law enforcement?
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What is the primary function of the Public Company Accounting Oversight Board (PCAOB)?
What is the primary function of the Public Company Accounting Oversight Board (PCAOB)?
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Which section of the Sarbanes-Oxley Act requires companies to report on the effectiveness of their internal controls?
Which section of the Sarbanes-Oxley Act requires companies to report on the effectiveness of their internal controls?
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What types of penalties does the Sarbanes-Oxley Act impose for white-collar crimes?
What types of penalties does the Sarbanes-Oxley Act impose for white-collar crimes?
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How does the Sarbanes-Oxley Act support whistleblowers?
How does the Sarbanes-Oxley Act support whistleblowers?
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What is the main objective of Situational Crime Prevention Theory?
What is the main objective of Situational Crime Prevention Theory?
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Which of the following is NOT one of the five ways to modify opportunities according to Situational Crime Prevention Theory?
Which of the following is NOT one of the five ways to modify opportunities according to Situational Crime Prevention Theory?
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What impact has the Sarbanes-Oxley Act had on investor confidence?
What impact has the Sarbanes-Oxley Act had on investor confidence?
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What is a key strategy utilized by Situational Crime Prevention Theory?
What is a key strategy utilized by Situational Crime Prevention Theory?
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Study Notes
Regulatory Justice System Benefits
- Regulatory agencies combat institutional wrongdoing.
- Regulatory agencies deter businesses from illegal acts through oversight.
- Agencies aim for compliance through persuasion and cooperation.
- Regulatory agencies possess enforcement powers.
Four Perspectives of the Regulatory System
- Justice Model: Focuses on social control of economic institutions, connected to Sutherland's idea that white-collar criminals face less penalty due to perceived positive traits. This model prioritizes inspectors and administrative courts over traditional criminal courts.
- Rational-Legal Model: A response to social problems, like corporate crime, using legislative action to create specific regulations.
- Economic Model: Assesses the costs and benefits of regulations, focusing on whether the benefits outweigh the implementation costs. Concerns exist that corporations prioritize profit over societal benefit if regulations are removed.
- Conflict Model: Similar to conflict theory, emphasizing competition and the struggle for power within society, where the "esteemed" individuals or businesses are protected, sometimes at the expense of others.
Conflict Model Details
- Competitive struggle among groups in society
- Regulations should protect less powerful groups
- The regulatory body may be influenced to protect the interests of powerful individuals or companies.
Economic Model Details
- The economic model uses a cost-benefit analysis to assess regulations.
- Concerns exist over the difficulty of measuring non-monetary costs or benefits of regulations
- Corporations often oppose regulations due to perceived costs to profits
Self-Regulation
- Smaller companies are more likely to be found by law enforcement and be subject to self-reporting.
- Smaller crimes from smaller entities are not as impactful and likely have less harsh punishments
- Larger corporations commit impactful crimes and receive harsher punishments; this may discourage self-reporting.
Language of the Law
- The law's purpose is to control, enforce, and exercise the law against individuals (not corporations automatically).
Investigative Agencies
- FBI: Financial fraud, bribery, money laundering
- Inspectors General: Ensure agency compliance
- U.S. Postal Inspection: Mailing system security
- Internal Revenue Service: Tax fraud
Pros/Cons of Non-Prosecution/Deferred Prosecution Agreements
- Pros: Preventing job losses, minimizing industry-wide impact, encouraging cooperation in uncovering misconduct, flexible resolution of cases.
- Cons: Insufficient reforms, perceptions that corporations can purchase their way out of accountability, limited judicial oversight.
Criminal vs Civil Courts
- Civil courts: Allow for monetary damages and fines, not imprisonment
- Civil courts have a lower standard of evidence/proof compared to criminal cases.
- Civil cases typically shorter & easier to resolve due to relationship between parties.
SOX Act
- The Sarbanes-Oxley Act of 2002
- Created in response to the Enron and Arthur Andersen accounting scandals
- Increased corporate accountability, oversight of auditors, increased transparency
- Aim is to prevent white-collar crime
Situational Crime Prevention Theory (SCPT)
- SCPT aims to reduce crime opportunities.
- Five ways to modify opportunities: Increase effort, Raise risk of detection, reduce rewards, reduce situational factors, eliminate excuses.
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Description
This quiz explores the benefits and perspectives of the regulatory justice system. It covers the roles of regulatory agencies in combating wrongdoing, ensuring compliance, and their various models, including justice, rational-legal, and economic. Test your understanding of how these frameworks operate within the context of corporate and institutional regulation.
