Reducing Financial Crime Convenience for Sustainable Finance: A Case Study of Danske Bank in Estonia

Abstract

This chapter presents a case study of Danske Bank activities in Estonia by application of convenience theory. Reducing financial crime convenience is a matter of financial motives, organizational opportunities, and willingness for deviant behavior. Reduction in crime convenience is thus a matter of reduction in motives, reduction in opportunities, as well as reduction in willingness. Reduction in crime convenience contributes to sustainable finance. The elements of convenience reduction are evident from the structure of convenience theory. First, it is a matter of corporate executive status: disclosure of executive language, removal of powerful people, detection of misleading attribution, disregard of offender humor, and correction of power inequality. Next, it is a matter of access to corporate resources: Restrictions on access to systems, disclosure of entrepreneurialism, review of specialized access, and limits to strategic resources. Third, it is a matter of organizational improvement: transparency to avoid deterioration, replacement of disorganization, detection of crime signals, transparency in accounting, corporate social responsibility, and sharing of audit reports. Fourth, it is a matter of oversight and guardianship: coordination of principal and agent, sensemaking of executive actions, protection of whistleblowers, and corporate principal agent dynamics. Finally, it is a matter of markets and networks: reduction in rule complexity, avoidance of crime networks, combat of criminal market forces, and avoidance of victimization from cartel crime activities.