Limbaugh (2010), “Social institution is a group or organization that has a particular purpose, goal, or task, and accomplishes the successful completion of this goal, purpose, or task by influencing and persuading individuals in a community to participate, and assist with achieving this objective. Social institution applies to organized crime in numerous ways.” This paper will explain how organized crime functions as a social organization and the empirical and speculative theories related to it. Organized crime functions as a community with a combination of various social systems. Production, distribution, consumption, socialization, social control, social participation, and mutual support combined make it possible for organized crime to function. Failure in the consumption, production, and distribution make it possible for organized crime to exist. Organized crime capitalizes on the needs of consumers and makes a profit on filling the void.
Organized criminals will function legitimate businesses to conceal illegal activities. Often, the legitimate businesses are ran by members of the community bribed or forced into cooperation. The businesses operated are usually car dealerships, bars, night clubs, beer companies, and even banks. While during the business hours of operations, the business is ran with legitimate appearance but during closing hours or behind, organized criminals will operate illegal business. The illegal business includes, disposal and distribution of stolen goods, money laundering and other forms of illegal business. Along with concealment, organized criminals benefit from legitimate businesses by having a source of legitimate income, avoiding harassment from competitors, having a provision of money laundering resource, and earning extra capital for joint investment ventures.
The rational choice theory is one of the theories mostly associated with organized crime. An example of the rational choice theory is if a man has lost his job and...
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