The Effects of Exposing CPAs to Rationalizations Conscious and Unconscious Outcomes

This article reports on an experimental examination of rationalization and socialization phenomenon among CPAs. Rationalizations represent the cognitive justifications that individuals use to morally disengage their internal norms. Neutralizations are rationalizations made before and influencing the decision. Socialization within an organization represents the tactics used by a corrupting influence, such as a superior providing neutralizations to persuade subordinates to be complicit in corruption. Neutralization and Socialization are fundamental first steps facilitating normalization of organizational corruption. We find that exposure to neutralizations increases unethical intentions despite cautions against falling prey to them. This result is robust to two different morally intense and practically relevant ethical cases: signing off on non-completed tasks and facilitating premature revenue recognition. We also advance evidence that for many participants the influence of provided rationalizations is unconscious. The effects of exposure to neutralizations were robust among Millennials and Gen Xers, but not among Baby Boomers.

Investigating the causal complexity of corruption in project-based organizations: a scenario analysis of bidding activity in the Chinese construction sector

PurposeAlthough the global construction industry has made great contributions to economic development, industry corruption is a challenge for governments all over the world. This paper aims to investigate the causal complexity of organizational corruption by exploring the configuration effect of multiple induced conditions of corruption in the construction sector.Design/methodology/approachThis study is focused on bribery, a specific form of corrupt behavior through a scenario-based survey role-playing game in which participants encounter bribery. A total of 400 Chinese construction sector participants were randomly recruited to complete this survey.FindingsCompared with studies that have identified a number of factors associated with corruption in the construction sector, this study found asymmetry and complexity in the causality of organizational corruption. That is, when a variable causing corruption changes from one condition to its opposite – for example, from fierce to mild competition – the degree of corruption is not necessarily reduced as one may expect.Practical implicationsAnti-corruption measures should not rely solely on the net effects of discrete conditions and the interactions between multiple factors should not be ignored. In other words, anti-corruption strategies should not be implemented in isolation of their context, and pairing control measures with configurations is critical in controlling corruption. Finally, multiple configuration paths should be reconsidered when considering the degree of corruption reduction.Originality/valueThis study proposes a comprehensive analysis framework for addressing organizational corruption in the construction sector by investigating configuration effects of multiple induced conditions and offers a useful method for addressing corruption.

Enron and the California Energy Crisis: The Role of Networks in Enabling Organizational Corruption

We provide an analytically structured history of Enron's involvement in the California energy crisis, exploring its emergence as a corrupt organization and its use of an interorganizational network to manipulate California's energy supply markets. We use this history to introduce the concept of network-enabled corruption, showing how corruption, even if primarily enacted by a single dominant organization, is often highly dependent on the support of other organizations. Specifically, we show how Enron combined resources from partner firms with its own capabilities, manipulating the energy market and capitalizing on the crisis. From a methodological point of view, our study emphasizes the growing importance of digital sources for historical research, drawing particularly on telephone and email records from the period to develop a rich, fly-on-the-wall understanding of a phenomenon that is otherwise hard to observe.

Employee perceptions of corporate social responsibility and organizational corruption: empirical evidence from Kosovo

Purpose The purpose of this paper is to investigate the relationship between perceived corporate social responsibility (PCSR) and perceived organizational corruption (POC) in a developing country context. The research suggests mediating roles of perceived ethical leadership (PEL) and job satisfaction (JS) in the PCSR–POC relationship. Design/methodology/approach Data were collected through survey questionnaires. The sample consisted of 434 employees working in private and public organizations in Kosovo. Regression analysis was conducted by using a serial mediation model. Findings Applying a social learning framework, this study provides evidence that employees’ perceptions of corporate social responsibility (CSR) are positively related to perceived ethical leadership and job satisfaction and negatively related to perceived organizational corruption. Furthermore, results confirm that the relationship between CSR perception and organizational corruption perception is mediated by ethical leadership perception and job satisfaction. Practical implications Armed with the findings, organizations can adopt CSR practices to positively influence employee behaviors and attitudes. From these results, it is possible to better comprehend the role of CSR in dealing with relevant aspects such as corruption at the organizational level, especially in developing and emerging markets. Social implications The findings of this research indicate that employees in socially responsible organizations perceive less organizational corruption. Adopting a more ethical and responsible management approach might represent a promising solution to fight the corruption phenomenon inside and even outside organizations. These results should serve as reflection for both managers and public authorities. Originality/value With regard to CSR, previous studies have investigated different employee outcomes but never considered the potential impact on corruption at the organizational level. Furthermore, this study extends the literature by conceptualizing perceived ethical leadership and job satisfaction as mediators between perceived CSR and organizational corruption perception, in a developing country context where the concept of CSR is still less investigated.

Institutional Reflections on Organizational Corruption Control

This article applies and expands on a typology of organizational corruption control to analyze the various mechanisms used to address corruption within the Fédération Internationale de Football Association (FIFA). It uses case study evidence in tandem with insights from neo-institutional theory to construct a conceptual framework in which corruption control types are more completely examined within their broader institutional context. Using this framework, the article shows how the persistence of corruption in FIFA and its checkered reform process are attributable to an organizational filtering phenomenon that has limited the operation of internal and external corruption controls. Finally, it discusses some implications of this framework for transnational organizational governance reform.