Tag Archives: prejudice/discrimination

Why Don’t More Women Commit Fraud?

Women in the U.S. have made some monumental gains at work.  We’re now at least half the labor force and more women today are middle- and upper- managers in corporate America.  Even so, I wasn’t surprised to discover that women have not (yet) made similar inroads into high-level corporate crime.

Rather, it’s “business as usual” when it comes to who is responsible for orchestrating and carrying out major corporate frauds.

For the American Sociological Review, Darrell Steffensmeier, Michael Roche, and I studied accounting malpractices like security fraud, insider trading, and Ponzi schemes in America’s public companies to find out just how involved women were in these conspiracies.  The Corporate Fraud Task Force indicted 436 individuals involved in 83 such schemes during July 2002 to 2009.  We read and recorded information from indictments and other documents or reports that described who was involved and what they did.

I expected the share of women in corporate fraud to be low – definitely less than the near-half that are women among (low-profit) embezzlers arrested each year– like your bank teller or local non-profit treasurer.   However, I was surprised that women corporate fraudsters were about as rare as female killers or robbers – less than 10% of those sorts of offenders.  Of the 400+ indicted for corporate fraud, only 37 were women.

Most of these frauds were complex enough to require co-conspiracy over several years and a criminal division of labor.  Often, women weren’t included at all in these groups.  When they were, they were nearly always in the minority, often alone, and most typically played rather small roles.

The Enron conspiracy, for example, led to over 30 indictments; three were women and each played a minor role. The five women indicted among 19 in the HealthSouth fraud were in accounting-related positions and instructed by senior personnel to falsify financial books and create fictitious records.  Martha Stewart, rather than criminal mastermind of an insider trading conspiracy, committed “one of the most ill-fated white-collar crimes ever” in which she saved just $46,000 after receiving a stock-tip second-hand from her broker.

Women were almost never the ringleader or even a major player in the fraud.  Only one woman CEO led a fraud – the smallest fraud we studied – and two women with their husbands.  One reason surely must be that women are not as often in positions to lead these schemes.  However, even when we compared women and men in similar corporate positions, women were less likely to play leadership roles in the fraud.  Is there a “glass ceiling” in the white-collar crime world?

What most surprised me, however, was how little the women benefited from their illicit involvement.  The wage gap in illicit corporate enterprise may be larger than in the legitimate job market.  Over half the women did not financially gain at all whereas half the men pocketed half a million dollars or more.  The difference in illicit-gains persisted even if we compared women to their co-conspirators.  Males profited much more. Women identified “gains” such as keeping one’s job.

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Even when women are in the positions to orchestrate these frauds, it’s likely that the men who initiate these conspiracies prefer to bypass women, involving them in minor roles when need dictates or when trust develops through a close personal relationship.  And women hardly initiated any schemes.  Women business leaders tend to be more risk-averse and apt to stress social responsibility and equity, perhaps making corporate fraud unlikely.

So, would having more female leaders reduce corporate crime?  We don’t know, but we think it’s likely.  Women executives tend to make more ethical decisions, avoid excessive risk-taking, and create corporate cultures unsupportive of illegal business practices.  Time will tell if, on the other hand, women moving up the corporate ladder increasingly adopt a wheeler-dealer, “dominance at all costs” corporate ethic.

Some may be a little disappointed that women either cannot yet or do not exercise their power over others to illegally advance their business (and personal) interests as men have been doing for generations.  There are moments when I catch myself “rooting” for a more successful pink-collar offender – and examples exist.  However, when I consider the destruction and havoc wrought on the U.S. economy and so many peoples’ lives by these financial crimes, I am reminded that this is not the way in which I hope women wield power when business leadership roles are more equally shared.

This posts originally appeared at the Gender & Society blog.

Jennifer Schwartz, PhD, is an associate professor of sociology at Washington State University.  Her research focuses on the gender and race demographics of criminal offenders, violence, and substance abuse.

Racial Disparity in Imprisonment Inspire Whites to be “Tough on Crime”

“Advocates might want to try different language (or a different approach) in their campaign to reform the criminal justice system,” writes Jamelle Bouie for Slate. He drew his conclusion after summarizing a new pair of studies, by psychologists Rebecca Hetey and Jennifer Eberhardt, looking at the relationship between being “tough on crime” and the association of criminality with blackness.

In the first study, 62 White men and women were interrupted as they got off a commuter train and invited to chat about the three strikes law in California. Before being presented with an anti-three strikes petition, they were shown a video that flashed 80 mugshots. In one condition, 25% of the photos were of black people and, in another, 45% of the photos were.

Among the subjects in the first “less black” condition, more than half signed the petition to make the law less strict, but only 28% in the “more black” condition signed it.

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A second study in New York City about the stop-and-frisk policy had a similar finding:

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The results suggest that white Americans are more comfortable with punitive and harsh policing and sentencing when they imagine that the people being policed and put in prison are black. The second study suggested that this was mediated by fear; the idea of black criminals inspires higher anxiety than that of white criminals, pressing white people to want stronger law enforcement.

So, as Bouie concluded, when prison reformers and anti-racists point out the incredible and disproportionate harm these policies do to black Americans, it may have the opposite of its intended effect. Hetey and Eberhardt conclude:

Many legal advocates and social activists assume that bombarding the public with images and statistics documenting the plight of minorities will motivate people to fight inequality. Our results call this assumption into question. We demonstrated that exposure to extreme racial disparities may make the public less, not more, responsive to attempts to lessen the severity of policies that help maintain those disparities.

“Institutional disparities,” they add, “can be self-perpetuating.” Our history of unfairly targeting and punishing black men more than others now convinces white Americans that we must continue to do so.

Lisa Wade is a professor of sociology at Occidental College and the co-author of Gender: Ideas, Interactions, Institutions. You can follow her on Twitter and Facebook.

“Man Up, Ladies!” … But Not Too Much

In order to be successful in many parts of labor market, women must exhibit traits that are typically considered “masculine.” The title of a fashion article in Glamour magazine hints at — okay, blatantly states — this reality:

Man Up, Ladies! That whole menswear separates look is so hot right now. (Suits, layers, plaids, you name it.) We’d promote you instantly!

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The article reinforces the idea that masculine characteristics are favored in many white collar jobs. In contrast, feminine characteristics carry a negative connotation, like when a New York Times article conflated being feminine and an undesirable employee when they contrasted the positive attribute of being “productive and results-oriented” with being a “sissy.”

Women can do masculinity, then, to reap some of the rewards offered to those who embody it, but there’s a catch: women must maintain their “femininity,” too. Women face gender rules that require that they wear makeup in order to be seen as beautiful and competent. Not doing so brings costs.

One study, for example, compared viewers’ perceptions of females with varying degrees of make-up, ranging from no make-up to glamorous. Research participants were shown photos of female faces and asked to rate the images on attractiveness, likeability, competence, and trustworthiness. Respondents rated the faces wearing make-up higher on likeablility, competence, and especially attractiveness, compared to the faces with no make-up.

These gendered behavioral and beauty norms amount to a double-edged sword for women.  They must do masculinity to be successful at work, but they must be feminine to get along.  So, man up, ladies… but not too much.

Chloe Albin is a senior at Chapman University studying dance and psychology. Dr. Georgiana Bostean is an assistant professor teaching sociology and environmental science and policy. She studies population health. 

James Baldwin on the Idea that He Should Trust the Hearts of White People

In the clip below, James Baldwin powerfully explains why he, as a black man, has no reason to assume that white people care about him and his people.

Responding to Dick Cavett, he says, “I don’t know what most white people in this country feel, but I can only conclude what they feel from the state of their institutions.”

He goes on to present a devastating list of ways in which American institutions are segregated and biased.  He concludes:

Now, this is the evidence. You want me to make an act of faith — risking myself, my wife, my woman, my sister, my children — on some idealization which you assure me exists in America, which I have never seen.

It was 1968, four years after the Civil Rights Act.  This year marks its 50th anniversary. How much have things changed?

Hat tip to Tim Wise. Cross-posted at Pacific Standard.

Lisa Wade is a professor of sociology at Occidental College and the co-author of Gender: Ideas, Interactions, Institutions. You can follow her on Twitter and Facebook.

The Average White American’s Social Network is 1% Black

American divisions over the state of our country’s race relations were brought to the forefront in the aftermath of Mike Brown’s shooting by a Ferguson, MO police officer named Darren Wilson. Black Americans are more than twice as likely as whites or Hispanics to say that the killing was part of a broader pattern (source).  And blacks are twice as likely as whites to say that race played an important role in Wilson’s decision to shoot (source).

At The Atlantic, Robert Jones argues that these disparate opinions may be caused, in part, by the different life experiences of the typical white and black American. He shows data, from the American Values Survey, indicating that black people are much more likely than whites to report living in communities rife with problems, from a lack of jobs and inadequate school funding to crime and racial tension.

In the meantime, whites may be genuinely naive about what it’s like to be black in America because many of them don’t know any black people.  According to the survey, the average white American’s social network is only 1% black.  Three-quarters of white Americans haven’t had a meaningful conversation with a single non-white person in the last six months.

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In contrast, the social network of the average black American is 65% black and, among Hispanic Americans, 46% Hispanic.

The average white person’s failure to engage meaningfully with people of color isn’t solely a matter of personal choice, though that is certainly part of it.  Nor is it simply a function of the country being majority white, non-Hispanic (but not for long).  White insularity is caused, too, by occupational and residential segregation which, in turn, is the result of both individual choices and institutionalized mechanisms that keep black people in poverty and prison.

If we want the people of America to embrace justice, we must make our institutions just.

Cross-posted at Pacific Standard.

Lisa Wade is a professor of sociology at Occidental College and the co-author of Gender: Ideas, Interactions, Institutions. You can follow her on Twitter and Facebook.

Reading the Camouflage: “You are Now Enemy Combatants”

Much has been said — and much more should follow — about the militarization of the police in American cities.  The images coming out of Ferguson, MO these past weeks testify to the distribution of military-grade hardware, gear, guns, and vehicles to your everyday police officer.

Here I’d like to focus on just one small part of this distribution of military-grade equipment: the uniform.  It’s not, by a long shot, the most straightforwardly dangerous, but it is a powerful symbol.  It’s a “dead giveaway,” writes a political scientist at Gin & Tacos, that there is something amiss with the “mindset of law enforcement.”  He’s referring to the swapping of blue or tan in favor of camouflage, like in this photo by Whitney Curtis for The New York Times:

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From Gin & Tacos:

Of what conceivable practical use could green or desert camouflage be in a suburban environment? Gonna help you blend in with the Taco Bell or the liquor store? Even if they did wear something that helped conceal them, that would be counterproductive to the entire purpose of policing in a situation like that; law enforcement wants to be visible to act as a deterrent to violent or property crimes in a public disturbance.

He concludes that “[t]here is only one reason those cops would wear camo” and, if I can put words in his mouth, it’s to be frightening and intimidating.  And, perhaps, to enjoy being so.

This is clear when we think about the role that camo plays in everyday fashion. For women, it’s a fun appropriation of masculinity.  For men, it’s a way to signal “I’m tough” by reference to hunting or soldiering. What irony, after all, that black men in Ferguson were also photographed wearing camo during the unrest that followed Brown’s death.

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On their bodies, of course, the camouflage is much more benign.  In contrast, alongside kevlar, automatic rifles, and riot shields on cops, it’s terrifying. It sends a clear message to the people of Ferguson: you are now enemy combatants.

Lisa Wade is a professor of sociology at Occidental College and the co-author of Gender: Ideas, Interactions, Institutions. You can follow her on Twitter and Facebook.

W.E.B. DuBois on the Indifference of White America

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W.E.B. DuBois (1934):

The colored people of America are coming to face the fact quite calmly that most white Americans do not like them, and are planning neither for their survival, nor for their definite future if it involves free, self-assertive modern manhood. This does not mean all Americans. A saving few are worried about the Negro problem; a still larger group are not ill-disposed, but they fear prevailing public opinion. The great mass of Americans are, however, merely representatives of average humanity. They muddle along with their own affairs and scarcely can be expected to take seriously the affairs of strangers or people whom they partly fear and partly despise.

For many years it was the theory of most Negro leaders that this attitude was the insensibility of ignorance and inexperience, that white America did not know of or realize the continuing plight of the Negro.  Accordingly, for the last two decades, we have striven by book and periodical, by speech and appeal, by various dramatic methods of agitation, to put the essential facts before the American people.  Today there can be no doubt that Americans know the facts; and yet they remain for the most part indifferent and unmoved.

- From “A Negro Nation Within a Nation.

Borrowed from an essay by Tressie McMillan Cottom. Photo from ibtimes.com.

Lisa Wade is a professor of sociology at Occidental College and the co-author of Gender: Ideas, Interactions, Institutions. You can follow her on Twitter and Facebook.

Saturday Stat: The Invention of the “Illegal Immigrant”

Citing the immigration scholar, Francesca Pizzutelli, Fabio Rojas explains that the phrase “illegal immigrant” wasn’t a part of the English language before the 1930s.  More often, people used the phrase “irregular immigrant.”   Instead of an evaluative term, it was a descriptive one referring to people who moved around and often crossed borders for work.

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Rojas points out that the language began to change after anti-immigration laws were passed by Congress in the 1920s.  The graph above also reveals a steep climb in both “illegal immigrant” and “illegal alien” beginning in the ’70s.

Lisa Wade is a professor of sociology at Occidental College and the co-author of Gender: Ideas, Interactions, Institutions. You can follow her on Twitter and Facebook.