Focus on text comprehension

1. Answer the following questions using information from the text.

1. What does the term corporate crime refer to?

2. Why is corporation called the vehicle for crime?

3. What makes corruption one of the main problems in the developed world?

4. Why do officials increase the technical complexity of public sector projects?

5. What is bribery? What can serve as a bribe? Give an example of a person resorting to bribes.

6. In what way can corrupt officials benefit from their position?

7. What do the terms nepotism and cronyism mean?

8. Who can become an embezzler? How is embezzlement effectuated?

9. What is the most common method of embezzlement? What other methods do you know?

10. How can embezzlement be uncovered?

11. What is a kickback? Exemplify your answer. Whom can kickbacks be given to?

12. What methods does industrial espionage include?

13. How can insider trading be defined? Is it legal or illegal?

14. In what way does corporate crime pose a threat to the welfare of the community?

2. Say whether the following statements are true or false. Justify your answer using the information from the text.

1. Corruption promotes economic development.

2. In the countries with prospering culture of corruption businessmen do not need to resort to bribes.

3. Such open form of corruption as extortion is typical of stable sates.

4. Nepotism is outright theft of entrusted funds.

5. Embezzlers usually steal small sums of money during a long period.

6. A kickback is a gift the aim of which is to influence the receiver’s conduct.

7. Hiring people away from competitors is one of the effective methods of industrial espionage.

8. Insider trading occurs when a company’s employee trades using public information he or she has obtained from some generally accessible source.

9. Insider trading is believed to decrease overall economic growth.

Focus on vocabulary

1. Translate the following words into Russian and reproduce the context they are used in:

natural person, a short-term crime, wholesalers, illicit payment, kickbacks, person in discharge of a public or legal duty, narcotics smuggler, outright armed robbery, embezzlement, falsification of records, phantom employees, payroll checks, corrupt bidding, kickback payments, corporate insiders, non-public information

2. Find in the text English equivalents for the following Russian words and phrases:

Совершать преступление, физическое лицо, открывать счет для торговли в кредит, не быть обнаруженным, руководитель высшего звена, подрывать развитие экономики, деформации, неэффективность, переговоры с должностными лицами, нарушить соглашение, сократить бюрократию, изобретать новые правила и препятствия, поддерживать неэффективные компании, выполнение правил, давать взятку кому-либо за что-либо, уменьшить уголовное наказание, незаконно использовать полицию, наносить вред, вверенные деньги, незаконное присвоение собственности, присваивать/утаивать, занижать прибыль, положить в карман разницу, создать ложный счет кредитора, снабжать фальшивыми чеками, создать призрачных рабочих, раскрывать с помощью обычной ревизии, документация в порядке, коррумпированный торг/аукцион, сделавший лучшее предложение, фактическая выплата, рыночная цена, внедрить шпиона, инсайдерская торговля

3. Match the words to form collocations.

A

natural short-term criminal narcotics inefficient state credit trading entrusted illegitimate senior outright

firms accounts use manager crime funds armed robbery person penalties smuggler force

B

vender insider routine payroll actual corporate false non-public best corrupt phantom market-based

bills information bidding bidder employees price audit payment account checks insider trading

4. a) Explain the following notions. Use any English dictionary for advanced users if necessary:

money laundering, white-collar crime, personal gains, organized crime, bribery, graft

b) Fill in the blanks with the words mentioned above.

1. While ... includes an intent to influence or be influenced by another for … , which is often difficult to prove, graft only requires that the official gains something of value, not part of his official pay, when doing his work. Large "gifts" qualify as … , and most countries have laws against it. (For example, any gift over $200 value made to the President of the United States is considered to be a gift to the Office of the Presidency and not to the President himself. The outgoing President must buy it if he wants to take it with him.)

2. Corporate crime overlaps with: … , because the majority of individuals who may act as or represent the interests of the corporation are employees or professionals of a higher social class; … , because criminals can set up corporations either for the purposes of crime or as vehicles for ... .

5. Fill in the blanks with prepositions if necessary. You can consult the text.

1. Corporate crime refers … crimes committed either by a corporation or by individuals that may be identified … a corporation.

2. And the corporation is the vehicle … the crime.

3. The bribe is the gift bestowed to influence … the receiver's conduct.

4. A motorist may bribe a police officer not to issue a ticket … speeding.

5. Embezzlement may range … the very minor, involving only a very small amount, … immense, involving very large sums and very sophisticated schemes.

6. Embezzlers commonly steal relatively small amounts repeatedly … a long period.

7. Embezzlement is easier to detect if all transactions are … check but if many transactions are … cash, it is much more difficult to identify.

8. A kickback is an official's share of misappropriated funds allocated … his or her organization … an organization involved in corrupt bidding.

9. … exchange … betraying the public, the official who is … charge … some public funds receives a kickback payment which is a portion of the sum the company received.

10. This sum itself may be all or a portion of the difference … the actual (inflated) payment to the company and the (lower) market-based price.

11. Some companies spend years … research and development activities.

12. But the moment they put a new product … the market, you can buy it, take it apart and improve … it.

13. Corporate crime poses a significant threat … the welfare of the community.

6. Fill in the blanks with a suitable prepositional phrase from the previous exercise.

1. It poses a direct … the well-being of the country.

2. Officially, the manager is … the business but in practice his assistant does all the work.

3. Have you got a … today’s football match?

4. She neglected her duties … a long period but got away with it.

5. How are these innovations going to … production?

6. The products of the company … stationary … electronic equipment.

7. He was anxious not to be … the company authorities who have a reputation for arrogance and ruthlessness.

8. They use the advertising campaign as the … gaining profits.

9. These restrictions do not … Production Department.

10. He is involved … research and development activities.

11. They have to … the product before putting it … .

12. What is the … this car and their latest model.

13. Will you pay … or … ?

14. The committee … funds … the state budget … universities.

15. He offered to help her with the report on the company’s performance … her help with the project.

7. a) Say how corporations get involved in crime, use the vocabulary below:

to commit crimes, offences, to be detected, greed, to be the vehicle for crime, short-term crime, to open credit trading accounts, to pay for the inventory, to be intermixed with sth, to escape detection, to achieve a suitable level of secrecy;

2. Speak about corruption and bribery, the most wide-spread forms of crime in business, make use of the following words and phrases:

to undermine economic development, to generate distortions and inefficiency, illicit payments, the risk of breached agreements, to cut red tape, to contrive new rules and delays, to bypass sth, to use bribes, to inflate the cost of business, to shield sb/sth from sth, to sustain inefficient firms, to divert public investment into capital projects, to pave way for sth, to increase budgetary pressures on government, to influence sb’s actions, right in action, to require two participants, to give/take the bribe, to extend to every aspect of public life, to resort to bribes;

2. Describe such types of corporate crime as extortion, nepotism and cronyism, use the words and word-combinations below:

corrupt officials, to make illegitimate use of state force, to inflict harm, organized crime groups, outright armed robbery, to occur in unstable states, lacking control of the military and the police, to favour sb, to control regulations, to affect the business;

2. Dwell on the schemes and methods of embezzlement and the ways of uncovering it, make use of the following:

theft of entrusted funds, to embezzle smth from sb, to range from…to, to involve sophisticated schemes, to cause falsification of records, to conceal the nature of the transactions, to under-report income, to pocket sth, to create a false vendor account, to supply false bills, to appear completely legitimate, to create phantom employees, payroll checks, to be uncovered by routine audits, to be in order, to be by check/ in cash, to develop a number of strategies;

2. Explain how the system of kickbacks works, use the vocabulary given below:

misappropriated funds, to be allocated to sb, to be involved in corporate bidding, to spend public funds, to be the best bidder, to receive a kickback payment, inflated payment, to be competitive, to be limited to, to be susceptible;

2. Dwell on the methods of industrial espionage, using the following words and phrases:

potential recruits, to become invaluable sources of information, to conduct false job interviews, ‘headhunting’ activity, to plant spies, key customers, to pretend to be a potential supplier, to take factory tours, to reproduce blueprints, to take sth apart, to improve on sth;

2. Speak about the practice of insider trading, use the following words and expressions:

corporation’s stock, securities, corporate insiders, to be illegal in many jurisdictions, to use non-public information, , public announcement, to take over, to buy shares in a company, to decrease overall economic growth.

8. Translate the following sentences from Russian into English using the vocabulary of this unit.

1. Корпоративные преступления – это преступления, совершаемые корпорациями, а не физическими лицами. Такие преступления могут быть временными или долгосрочными. Как правило, компания открывает счет для торговли в кредит, некоторое время торгует, а потом исчезает вместе со всей прибылью.

2. Коррупция и связанные с ней злоупотребления подрывают развитие экономики, т.к. вызывают различного рода деформации и экономическую неэффективность. Коррупция поддерживает неэффективные компании, мешает выполнению правил и уменьшает качество государственных услуг.

3. Коррупция подразумевает крупные незаконные выплаты должностным лицам. Это увеличивает расходы бизнеса, ведь договориться надо со многими чиновниками, и увеличивает риск, что одна из сторон нарушит договоренность. Сокращение бюрократии не уменьшает коррупции, т.к. доступность взяток заставляет чиновников изобретать новые правила и препятствия.

4. Взяточничество подразумевает принятие взятки лицом, исполняющим общественные и правовые обязанности. Взяточничество популярно и на дороге и в суде. Так, например, человек, занимающийся контрабандой наркотиков, может подкупить судью, чтобы уменьшить уголовное наказание.

5. Вымогательство как средство запугивания широко используется организованной преступностью. Но и коррумпированные должностные лица могут прибегнуть к нему и пугать людей, что будут незаконно использовать полицию, чтобы причинить им вред, если они не отдадут определенную сумму денег. Если такое вооруженное нападение случится, то это будет откровенный вооруженный разбой.

6. Расхищение – еще один вид корпоративного преступления. Обычно подчиненные незаконно присваивают собственность или расхищают вверенные им деньги. Расхищение связано с фальсифицированием отчетов. В таких отчетах реальная прибыль занижена. А разница между реальной и заниженной прибылью кладется в карман.

7. Выплата соучастнику его доли незаконно полученных денег – еще одно распространенное преступление. Должностное лицо или руководитель высшего звена создает условия коррумпированного аукциона, в результате которого фонды отдаются компании, не сделавшей лучшего предложения.

8. Часто такой компании выделяется гораздо больше денег, чем предусмотрено. Разница между фактической выплатой и рыночной ценой проекта делится между соучастниками аферы. И должностное лицо получает свою долю.

9. Одним из методов промышленного шпионажа является внедрение шпионов в компанию конкурента. Внедренный агент работает там некоторое время, собирает нужную информацию и потом возвращается в свою родную компанию.