Toxic Corporate Culture: Assessing Organizational Processes of Deviancy
There is widespread recognition that organizational culture matters in corporations involved in systemic crime and wrongdoing. However, we know far less about how to assess and alter toxic elements within a corporate culture. The present paper draws on management science, anthropology, sociology of...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
MDPI AG
2018-06-01
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| Series: | Administrative Sciences |
| Subjects: | |
| Online Access: | http://www.mdpi.com/2076-3387/8/3/23 |
| _version_ | 1818972193574354944 |
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| author | Benjamin van Rooij Adam Fine |
| author_facet | Benjamin van Rooij Adam Fine |
| author_sort | Benjamin van Rooij |
| collection | DOAJ |
| description | There is widespread recognition that organizational culture matters in corporations involved in systemic crime and wrongdoing. However, we know far less about how to assess and alter toxic elements within a corporate culture. The present paper draws on management science, anthropology, sociology of law, criminology, and social psychology to explain what organizational culture is and how it can sustain illegal and harmful corporate behavior. Through analyzing the corporate cultures at BP, Volkswagen, and Wells Fargo, this paper demonstrates that organizational toxicity does not just exist when corporate norms are directly opposed to legal norms, but also when: (a) it condones, neutralizes, or enables rule breaking; (b) it disables and obstructs compliance; and (c) actual practices contrast expressed compliant values. The paper concludes that detoxing corporate culture requires more than changing leadership or incentive structures. In particular, it requires addressing the structures, values, and practices that enable violations and obstruct compliance within an organization, as well as moving away from a singular focus on liability management (i.e., assigning blame and punishment) to an approach that prioritizes promoting transparency, honesty, and a responsibility to initiate and sustain actual cultural change. |
| first_indexed | 2024-12-20T15:04:23Z |
| format | Article |
| id | doaj.art-469c6b93d63f4845a85dbd8207412dda |
| institution | Directory Open Access Journal |
| issn | 2076-3387 |
| language | English |
| last_indexed | 2024-12-20T15:04:23Z |
| publishDate | 2018-06-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Administrative Sciences |
| spelling | doaj.art-469c6b93d63f4845a85dbd8207412dda2022-12-21T19:36:33ZengMDPI AGAdministrative Sciences2076-33872018-06-01832310.3390/admsci8030023admsci8030023Toxic Corporate Culture: Assessing Organizational Processes of DeviancyBenjamin van Rooij0Adam Fine1School of Law, University of California, Irvine, 401 East Peltason Drive CA 92697 and School of Law, University of Amsterdam, Nieuwe Achtergracht 166, 1018 WV Amsterdam, The NetherlandsSchool of Criminology and Criminal Justice, Arizona State University, 411 N. Central Ave, Suite 633 Phoenix, Tempe, AZ 85004, USAThere is widespread recognition that organizational culture matters in corporations involved in systemic crime and wrongdoing. However, we know far less about how to assess and alter toxic elements within a corporate culture. The present paper draws on management science, anthropology, sociology of law, criminology, and social psychology to explain what organizational culture is and how it can sustain illegal and harmful corporate behavior. Through analyzing the corporate cultures at BP, Volkswagen, and Wells Fargo, this paper demonstrates that organizational toxicity does not just exist when corporate norms are directly opposed to legal norms, but also when: (a) it condones, neutralizes, or enables rule breaking; (b) it disables and obstructs compliance; and (c) actual practices contrast expressed compliant values. The paper concludes that detoxing corporate culture requires more than changing leadership or incentive structures. In particular, it requires addressing the structures, values, and practices that enable violations and obstruct compliance within an organization, as well as moving away from a singular focus on liability management (i.e., assigning blame and punishment) to an approach that prioritizes promoting transparency, honesty, and a responsibility to initiate and sustain actual cultural change.http://www.mdpi.com/2076-3387/8/3/23complianceorganizational cultureorganizational crimeethical climatebusiness ethicssocial norms |
| spellingShingle | Benjamin van Rooij Adam Fine Toxic Corporate Culture: Assessing Organizational Processes of Deviancy Administrative Sciences compliance organizational culture organizational crime ethical climate business ethics social norms |
| title | Toxic Corporate Culture: Assessing Organizational Processes of Deviancy |
| title_full | Toxic Corporate Culture: Assessing Organizational Processes of Deviancy |
| title_fullStr | Toxic Corporate Culture: Assessing Organizational Processes of Deviancy |
| title_full_unstemmed | Toxic Corporate Culture: Assessing Organizational Processes of Deviancy |
| title_short | Toxic Corporate Culture: Assessing Organizational Processes of Deviancy |
| title_sort | toxic corporate culture assessing organizational processes of deviancy |
| topic | compliance organizational culture organizational crime ethical climate business ethics social norms |
| url | http://www.mdpi.com/2076-3387/8/3/23 |
| work_keys_str_mv | AT benjaminvanrooij toxiccorporatecultureassessingorganizationalprocessesofdeviancy AT adamfine toxiccorporatecultureassessingorganizationalprocessesofdeviancy |