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Organi-Deviance Part I


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Organi-cultural Deviance Presented @ ASAC Conference Regina Canada

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Organi-Deviance Part I

  1. 1. ByChristie Husted PhD, Capella University Renee Gendron MA,Presented at the 2010 ASAC Conference May 21-25, 2010 Regina, SK © SBM Consulting Services LLC
  2. 2. Organizational culture has been defined as “written and unwritten expectations of behavior (rules and norms) that influence members of the organization”(Ross, 1995, p. 346).How likely is an organisation to place restraints and punishment on deviant behaviour, determines levels of deviant behaviour (Tittle, 1995)
  3. 3. Levels of control are “reflected by the control experienced across any number of situational and global domains” Piquero and Piquero (2006)Relationship between CEO and board  i) little contact between CEO and board  ii) controlling – CEO sets direction board just “rubber stamps”  iii) collaborative relationship, iv) focus on each partys strengths (Cady & Soukup, 2008)
  4. 4. 2008 Ph.D Dissertation by Husted: Systematic Differentiation Between Dark and Light Leaders: Is a Corporate Criminal Profile PossibleDark Leadership, defined through Edwin Sutherland (1949) coining of the term “white-collar crime”, defining it as a criminal act of respectable individuals in the course of their occupations  Led to questions about leadership  Concerns about group interactions
  5. 5. DARK LEADERSHIP 15. Cognitive 1. Egoism Dissonance 14. Justification 2. Motivation Neutralization 13. Deterrence 3. Opportunity Theory 4. Strain Theory 12. Pleasure/Pain 5. ConflictPrinciple Theory 7. Stakeholder 6. Stockholder Theory 8. Culture of Theory Competition 9. Capitalism 10. Interactionist 11. Symbolic Theory Constructs Figure 1: Dark Leadership Framework
  6. 6. Arthur Levitt, Former Chairman of theSecurities and Exchange Commission (SEC)from 1993 - 2001, stated there was A “Culture of Gamesmanship” where it was considered okay to bend to the pressures of analysts. A culture which believed it was okay to tweak the numbers and bend the rules and to allow discrepancies to slide” (Smith et al., 2006).
  7. 7. Group think occurs in a situation in which agroup is extremely cohesive and there is a strongdesire to reach consensus among members.Signs of group think:  i) illusion of Invulnerability  ii) collective rationalisation  iii) illusion of morality  iv) excessive stereotyping  v) pressure to conform  vi) self-censorship  vii) illusion of unanimity  viii) mindguards: people  protect group from outside information
  8. 8. Organisational culture starts at the topRey (2002). Without that creative dynamic, of being able to openly constructively criticize, an environment of fear, antipathy and stagnation sets in.
  9. 9. Truab & Little (1975) defined deviance as “ behavior which violates institutionalized expectations, that is, expectations which are shared and recognized as legitimate within a social system”Alison et al. (2002) identified the need to approach behavior using a holistic approach; focusing on the interaction of the Person x Situation
  10. 10. Argument to include internal organisational people-processes and people-dynamics in the definition of “Corporate Social Responsibility”CSR must also include how an institution monitors and manages the human interactions occurring in itFocus on people-dynamics not just for corporations, but also NGOs, government institutions, private firms
  11. 11. Internal human-processes of any organisation, including corporation that may lead to devianceHuman-processes include but not limited to:  Supervision: Too much, too little  Validation: Yes Men, Group Think, Gang/Cult Mentality, Justification
  12. 12. A cult was defined by Robbins andAnthony as a group having manipulative,authoritative leadership and coercivepower. Likely to have: Authoritarian leaders Totalitarianist in their organization Have a specific form of indoctrination (Richardson, 1993, p. 351)
  13. 13. Pavlos Points on a cult Business Cult – like BehaviourA cult has a living leader in A living leader; whosewhich the direction of the cult charisma is used tois set by the revelations of manipulate followers intothe leader working towards the leader’s personal vision, not the company visionA cults religious leader has A person whoabsolute authority over the micromanages, whogroup squashes any sort of independent thought, who refuses to hear the input of staff or colleagues and uses transactional relationships and coercive power to gain compliance of followers
  14. 14. Pavlos Points on a cult Business Cult – like BehaviourA cult promises converts In business terms, this cansalvation through hard work be translated into greaterand loyalty profits, subsequently equating with higher pay as long as the individual is willing to conform and transact the behaviors prescribed by the group and its leaderCults require the members Those who consistentlydo demeaning work for the question the leader’s visioncause or strategy are relegated to work which is far below their capabilities, and are subject to coercive power and reprisal for not transacting the wishes of the group and its leader
  15. 15. Pavlos Points on a cult Business Cult – like BehaviourCults promise everlasting As long as memberssalvation for their faithful continue to do what thefollowers leader tells them to do, they will maintain high financial rewardsConverts must remove Increasingly the businessthemselves from the greater becomes more opaque, evensociety to auditors and regulatorsCults strongly discourage The company’s leadercritical thinking surrounds him/herself with yes people and encourages group think.
  16. 16. Pavlos Points on a cult Business Cult – like BehaviourCults create strong feelings Workers directly involved inof dependency between cult the fraud or criminal actmembers become increasingly hostile to outsiders.Cults indoctrinate members Workers becomethrough extreme personality, increasingly consumed byattitude, belief and behavioral their employment, theirchange techniques personal lives are out of balance with their work lives.Cults practice rituals which Work related performance isare psychologically increasingly judged by hardunwholesome to members metrics instead of a combination of hard and soft metrics.
  17. 17. Too much supervision: Enron executives led Wall Street analysts through the trading floor (previously empty rooms). It looked like people were working – they were pretending.Too much supervision can led to micro- managing, bullying, loss of critical thinking in staff; over-dependence on a few people
  18. 18. Superficial charm GrandiosityManipulation DeceitLack of remorse Shallow affectFailure to accept responsibility Failure to conform to social normsImpulsivity Irritability and/or aggressivenessDisregard for safety for self or others Lack of self-awarenessLack of self-monitoring Inability to manage emotionsSelf motivation Inability to relate well to others
  19. 19.  Dr. Christie Hustedchusted[@] Renée Gendron, MA, Ph.d candidatereneegendron[@] orrgendron[@] Folders with full article and presentation available
  20. 20.  Alison, L., Bennell, C., Mokros, A., & Omerod, D. (2002). The personality paradox on offender profiling: A theoretical review of the processes involved in deriving background characteristics from crime scene actions. Psychology: Public Policy and Law, 8(1), 115-135. Cady, Joseph, H.; Soukup, William, R., (2008), “The Ugly Truth about Board Relations: SOX Isnt the Biggest Problem, Its the Interpersonal Relationships. Here is a Way to Move Your Board from Dysfunctional to Optimal”, in ABA Banking Journal, Vol. 100, Issue 2, Simmons-Boardman, (Gale Cengage Learning), pages 47-48 Coleman, J. (1987). Toward an integrated theory of white-collar crime. American Journal of Sociology, 93(2), 406-439 Corporate (2009), In The FreeOnline Dictionary by Farflex. Retreived May 15, 2009, from The Free
  21. 21.  Cressey, D. (1953, 1971). Others people money: A study in the social psychology of embezzlement. Belmont, MA: Wadsworth Felo, A., (2001, August), “Ethics programs. Board involvement, and potential conflicts of interest in corporate governance”, Journal of Business Ethics, Vol. 32 Issue 3, 205. Gray, Kenneth R.; Clark, George, W., (2002), Addressing Corporate Scandals through Business Education, International Journal on World Peace, Vol. 19(4), 49-51  Husted, C., (2008), Systematic Differentiation Between Dark and Light Leaders: Is a Corporate Criminal Profile Possible, Capella University Moore, J. (1992). Corporate culpability under the federal sentencing guidelines. Arizona Law Review, 34. Online Dictionary:
  22. 22.  Piquero, N., & Piquero, A. (2006). Control balance and exploitative corporate crime. Criminology, 44(2), 397-430. Piquero, N., Exum, L., & Simpson, S. (2005). Integrating the desires for control and rotational choice in the corporate crime context. Justice Quarterly, 22, 252-280. Rey, J., (2002), “Lessons Learned from Enron. Say “No” to “Yes- Men”, in About.Com: Management, September 19, 2002, Retrieved January 20, 2010 from n091902.htm Richardson, James, T., (1993), Definitions of Cult: From the Sociological-Technical to Popular-Negative, Review of Religious Research, Vol. 34(4): 351 Ross, D.; Benson, J., (1995), “Cultural Change in Ethical Redemption: A Corporate Case Study”, in The Journal of Business Communication, Vol. 32, Issue 4, Association for Business
  23. 23.  Smith, H. & Schaffer, M. (Writer), & Schaffer, M. (Director). (2006). Bigger Than Enron [Video recording]. Schaffer, M. (Producer), Frontline. Boston, MA: PBS. Sutherland, E. (1934). Principles of criminology. Chicago, IL: Yale University Press. Sutherland, E. (1949). White collar crime. New York: Holt, Rinchart and Winston Traub, S., & Little, C. (1975). Theories of Deviance. Peacock Publishers, (Itasca, IL). Tittle, C. (1995), Control Balance Theory, Boulder, CO: Westview Velasquez, M. (2003). Debunking corporate moral responsibility. Business Ethics Quarterly. 13(4) William, C.F., (1995), Values, Nature and Culture in the American Corporation, (Oxford University Press), page 83 Wetherell, M. (1996). Identities Group and Social Issues. Sage Publications (London).