Sunday 24 May 2015

Could Theories explain the increase of fraud, corruption and bribery?



Cressey’s Fraud Triangle outlines 3 factors must be present for a person to commit fraud. Pressure, rationalization and opportunity. The General Strain Theory and the Differential Association Theory also explain why certain people are more inclined to commit a crime.



The Strain Theory argues that people engage in deviant behaviours when socially approved goals are unattainable through legitimate means. He believed that members of lower socio- economic groups were prevented from achieving monetary success through the lack of skills and attitude.



The Differential Association Theory was proposed by Edwin Sutherland. In short, his theory argued the following:
1.       People tend to adopt the learned attitudes, beliefs and values of a certain subgroup.
2.       Crime occurs when the norms of the subgroup conflict with the majority.
3.       Criminal behaviour is learned through  the interaction with other people.
4.       Techniques of committing crimes, motivations, rationalization and attitude of committing a crime is learned through intimate interaction with a certain group.

Two people that join two different groups; lets say scouts and a street gang, will have acquired different attitudes and skills. The sense of belonging is a human need and through the groups we belong to, we either deviate or conform to societal norms.    


Both these theories ring true to the Cressey's Fraud Triangle. The General Strain Theory tends to describe how interpersonal and impersonal pressures causes individuals to commit fraud. While the Differential Association theory explains why the beliefs and rationalization in a group lead us to commit fraudulent activities.  


Reasons why fraud, corruption and bribery are increasing:

-          There is more financial pressure
-          Internet and business online

I agree to an extent with the theory proposed by Sutherland. Quite a while back I was employed at a discount department store where a particular manager ill treat the junior staff. I never disliked him that much but the general consensus of him from my friends really made me dislike him to the extent that I resigned. Never underestimate the power of social influence. 


References


http://study.com/academy/lesson/mertons-strain-theory-definition-examples-quiz.html

http://www.sagepub.com/haganintrocrim8e/study/chapter/handbooks/42347_7.1.pdf

http://www.d.umn.edu/~bmork/2306/Theories/BAMdiffassn.htm

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