The Absurdity of Corporate Crime

Bernie Madoff — the con, the criminal, the fraud, and the scum of the corporate establishment. These were the titles given to this corrupt financier, but above all, he was said to simply be a “bad egg” in a basket of well-intentioned entrepreneurs and “job creators.”

However, despite these claims, Madoff’s case is not unique. Madoff’s real crime was that he stepped outside the circle of appropriate corporate conduct, whose edge tends to gravitate farther and farther away from lawfulness as income rises. The reality of wealth privilege within the institutions that are publicly seen as ‘just’ is a causality of a system that rewards excess. Most shocking, however, is how the personal endeavors of these individuals clash with their fraudulent actions. Madoff, perhaps, is the epitome of such a phenomenon. Although stealing billions of dollars, he was also a devoted philanthropist. His largest beneficiary was the Picower Foundation, which allocated the funds to organizations such the Boy Scouts of America and the Children’s Aid Society. NY Times reports the funds as:

* 2007 — $23,424,401 (See the 2007 Form 990 filed by the Foundation with the Internal Revenue Service.)
* 2006 — $20,184,183 (See the Form 990.)
* 2005 — $27,662,893 (See the Form 990.)

In total, $958 million was donated to the Picower Foundation.

Other charities were involved, and were almost entirely dependent on Madofff’s funds. As reported by the NY Times, some of them included:

  • $145 million to the Carl & Ruth Shapiro Family Foundation
  • $20 million to Tufts University
  • $18 million to the Jewish Community Foundation of Los Angeles
  • $19 million to the Madoff Family Foundation
  • $90 million to the Hadassah, the Women’s Zionist Organization
  • $100 – $125 million to Yeshiva University

These are incredible amounts of money, so abuse comes to no surprise; but is it not an anomaly that the worst white-collar criminal in history was also one of the ‘greatest’ philanthropists, by modern standards? Acting as a perverse indulgence, charity might not be as chivalrous of an act as socially understood. Seen as a mechanism of redemption, this behavior is typical in this category of criminal activity. Bernard Ebbers, convicted in 2005 of similar crimes, showed the same phenomenon, having donated over $100 million dollars to charity over the course of ten years. Corporations are no exception; Enron was also a known giver to charity, 

Enron CEO Kenneth Lay exemplified the company’s philanthropy, endowing several professorships at the University of Houston and Rice University, while the company itself was known for its generous gifts to arts groups, scholarship funds, and the Texas Medical Center.

Such behavior, interestingly enough, correlates with the religious attitude seen when the Catholic Church held immense power in Europe during the Middle Ages. In an effort to ‘save’ those in Purgatory, having commited sins on Earth, priests charged individuals sums of money for indulgences, or remissions, to free or limit the time their loved ones would be trapped in this supernatural lingo. Priests, making huge individual profits, attempted to justify their accumulations through Church-sanctioned actions. In effect, they stole with one hand and ‘saved’ with the other.

In a modern twist, corporate crime is looking  for that same metaphysical ‘salvation,’ and they certainly found it in charity. Functioning as an egoist drive, this behavior only highlights the disparity of behavior within certain classes of the social strata. Little rationality can be viewed amongst those that accumulate such large reserves of finance power, as they scramble to find redemption in a sea of fraud and narcissism. It is this crude revelation that illustrates the paradox of corporate conduct — as long as you appear charitable, what is done behind closed doors is forgivable. Or so the twisted mindset goes.

***

More info on the “Paradox of Fraud and Philanthropy” 

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Journey to Russia

Embracing the cold, the beautiful, and the mysterious, Mother Russia

YesterYear Once More

Life as it was reported back then

Victor Serge's Ghost

"One must range oneself actively against everything that diminishes man, and involve oneself in all struggles which tend to liberate and enlarge him"

Collecting Russian Art

20th century Russian art and its uniqueness

Eden Sauvage

Radical Ideas for Radical Times

Adidas Marxism

Writings from the European periphery.

Communist League Tampa

proletarians of the world, unite!

Mosul Eye

This blog was set up to communicate what's happening in Mosul to the rest of the world, minute by minute by an independent historian inside Mosul.

catastrophic edge

"without the thought of suicide i would have killed myself long ago"- em cioran

Uglytruth-Thailand

Thai politics

Yanis Varoufakis

THOUGHTS FOR THE POST-2008 WORLD

Fractal Ontology

refracting theory: politics, cybernetics, philosophy

Russia Without BS

Where every day is worse than the one before!

The Disorder Of Things

For the Relentless Criticism of All Existing Conditions Since 2010

United States Hypocrisy

A critical analysis of the American empire's high-minded rhetoric, and the ways in which it continually fails to square with reality.

Valentino's blog

A blog about visual arts (well, mostly...)

eleutheromania

e*leu`ther*o*ma"ni*a | noun | a mania or frantic zeal for freedom. | [R.] Carlyle.

%d bloggers like this: