Antecedents of Corporate Scandals: CEOs' Personal Traits, Stakeholders' Cohesion, Managerial Fraud, and Imbalanced Corporate Strategy

Journal of Business Ethics

Volumn 113, Issue 2, 2013, Pages 265-283

  Zona, Fabio ^a   Minoja, Mario ^a,b   Coda, Vittorio ^a  

^a BOCCONI UNIVERSITY   (Italy)

^b UNIVERSITY OF MODENA AND REGGIO EMILIA   (Italy)

Author keywords

CEO; Corporate scandals; Corporate strategy; Managerial fraud; Stakeholders

Indexed keywords

EID: 84875737921     PISSN: 01674544     EISSN: 15730697     Source Type: Journal    
DOI: 10.1007/s10551-012-1294-6     Document Type: Article

References (94)

1. Allio, R. J. (2007). Bad leaders; how they get that way and what to do about them. Strategy and Leadership, 35, 12-17.
2. American Psychiatric Association (1994). Diagnostic and statistical manual of mental disorders (4th ed.). Washington, DC.
3. Amernic, J., & Craig, R. (2010). Accounting as a facilitator of extreme narcissism. Journal of Business Ethics, 1, 1-15.
4. Aquino, K., & Reed, A, II (2002). The self-importance of moral identity. Journal of Personality and Social Psychology, 83, 1423-1440.
5. Ashforth, B. E., & Anand, V. (2003). The normalization of corruption in organizations. Research in Organizational Behavior, 25, 1-52.
6. Ashforth, B. E., Gioia, D. A., Robinson, S. L., & Treviño, L. K. (2008). Re-viewing organizational corruption. Academy of Management Review, 33(3), 670-684.
7. Babiak, P. (1995). When psychopaths go to work: A case study of an industrial psychopath. Applied Psychology, 44, 171-188.
8. Babiak, P., & Hare, R. D. (2006). Snakes in suits when psychopaths go to work. New York: HarperCollins.
9. Babiak, P., Neumann, C. S., & Hare, R. D. (2010). Corporate psychopathy: Talking the walk. Behavioral Sciences & the Law, 28, 174-193.
10. Bass, B. M. (1985). Leadership and performance beyond expectations. New York: Free Press.
11. Bass, B. M. (1988). The inspirational processes of leadership. Journal of Management Development, 7(5), 20-31.
12. Baucus, M. S., & Near, J. P. (1991). Can illegal corporate behavior be predicted? An event history analysis. Academy of Management Journal, 34(1), 9-36.
13. Bingham, C. B., & Eisenhardt, K. M. (2006). Unveiling the creation and content of strategic processes: How and what firms learn from heterogeneous experience. Proceedings of the Academy of Management.
14. Boddy, C. R. (2006). The dark side of management decisions: Organisational psychopaths. Management Decision, 44, 1461-1475.
15. Boddy, C. R. (2011). Corporate psychopaths, bullying and unfair supervision in the workplace. Berlin: Springer.
16. Boddy, C. R., Ladyshewsky, R., & Galvin, P. G. (2010). The influence of corporate psychopaths on corporate social responsibility and organizational commitment to employees. Journal of Business Ethics, 97, 1-19.
17. Bragues, G. (2008). The ancients against the moderns: Focusing on the character of corporate leaders. Journal of Business Ethics, 78(3), 373-387.
18. Bromiley, P. (1991). Testing a causal model of corporate risk taking and performance. Academy of Management Journal, 34(1), 37-59.
19. Carson, T. L. (2003). Self-interest and business ethics: Some lessons of the recent corporate scandals. Journal of Business Ethics, 43, 389-394.
20. Chen, S. (2010). The role of ethical leadership versus institutional constraints: A simulation study of financial misreporting by CEOs. Journal of Business Ethics, 93, 33-52.
21. Clarke, J. (2005). Working with monsters. How to identify and protect yourself from the workplace psychopath. Sydney: Random House.
22. Clarke, J. (2007). The pocket psycho. Sydney: Random House.
23. Clinard, M. B., & Yeager, P. C. (1980). Corporate crime. New York: Free Press.
24. Coda, V. (2010). Entrepreneurial values and strategic management. Essays in management theory. NY: Bocconi University Press, Palgrave MacMillan.
25. Cohan, J. A. (2002). "I Didn't Know" and "I Was Only Doing My Job": Has corporate governance careened out of control? A case study of Enron's information myopia. Journal of Business Ethics, 40, 275-299.
26. Conger, J. A., & Kanungo, R. (1987). Toward a behavioral theory of charismatic leadership in organizational settings. Academy of Management Journal, 12, 637-647.
27. Conger, J. A., & Kanungo, R. (1998). Charismatic leadership in organizations. Thousands Oaks, CA: SAGE.
28. Daboub, A. J., Rasheed, A. M. A., Priem, R. L., & Gray, D. (1995). Top management team characteristics and corporate illegal activity. Academy of Management Review, 20(1), 138-170.
29. Dess, G., & Beard, D. (1984). Dimensions of organizational task environments. Administrative Science Quarterly, 29, 52-73.
30. Eisenberg, N. (2000). Emotion, regulation, and moral development. Annual Review of Psychology, 51, 665-697.
31. Eisenhardt, K. M. (1989). Building theories from case study research. Academy of Management Review, 14(4), 532-550.
32. Eisenhardt, K. M., & Bourgeois, L. J, III (1988). Politics of strategic decision making in high-velocity environment: Toward a midrange theory. Academy of Management Journal, 31(4), 737-770.
33. Eisenhardt, K. M., & Graebner, M. E. (2007). Theory building from cases: Opportunities and challenges. Academy of Management Journal, 50, 25-32.
34. Finkelstein, S. (2003). Why smart executives failes. New York: Penguin Putnam.
35. Finney, H. C., & Leiseur, H. R. (1982). A contingency theory of organizational crime. Research in the Sociology of Organizations, 1, 255-299.
36. Freeman, R. E. (1984). Strategic management: A stakeholder approach. Boston: Pitman.
37. Frost, A. G., & Rafilson, F. M. (1989). Overt integrity tests versus personality-based measures of delinquency: An empirical comparison. Journal of Business and Psychology, 3, 269-277.
38. Gordon, J. R. (1996). A diagnostic approach to organizational behavior. Upper Saddle River, NJ: Prentice-Hall.
39. Greenwood, R., & Suddaby, R. (2006). Institutional entrepreneurship in mature fields: The Big Five accounting firms. Academy of Management Journal, 49, 27-48.
40. Grunert, S. C., & Scherhorn, G. (1990). Consumer values in West Germany: Underlying dimensions and cross-cultural comparison with North America. Journal of Business Research, 20, 97-107.
41. Hambrick, D. C. (2007). Upper echelons theory: An update. Academy of Management Review, 32(2), 334-343.
42. Hambrick, D. C., & Mason, P. A. (1984). Upper echelons: The organization as a reflection of its top managers. Academy of Management Review, 9, 93-206.
43. Hanson, K. O., & Velasquez, M. (1988). The Boeing company: Managing ethics and values. In J. Keogh (Ed.), Corporate ethics: A prime business asset. New York: The Business Roundtable.
44. Hare, R. D. (2002). Psychopathy and risk for recidivism and violence. In N. Gray, J. Laing, & L. Noaks (Eds.), Criminal justice, mental health and the politics of risk (pp. 27-47). London: Cavendish Publishing Ltd.
45. Harris, J. D., & Bromiley, P. (2007). Incentives to cheat: The influence of executive compensation and firm performance on financial misrepresentation. Organization Science, 18(3), 350-367.
46. Hayward, M. L. A., & Hambrick, D. C. (1997). Explaining the premiums paid for large acquisitions: Evidence of CEO hubris. Administrative Science Quarterly, 42(1), 103-127.
47. Hirschi, T., & Gottfredson, M. (1987). Causes of white collar crime. Criminology, 25, 949-974.
48. Holmes, R. M, Jr, Bromiley, P., Devers, C. E., Holcomb, T. R., & McGuire, J. B. (2011). Management theory applications of prospect theory: Accomplishments, challenges and opportunities. Journal of Management, 37(4), 1069-1107.
49. Hood, J. N. (2003). The relationship of leadership style and CEO values to ethical practices in organizations. Journal of Business Ethics, 43, 263-273.
50. Howel, J. M., & Avolio, B. J. (1992). The ethics of charismatic leadership: Submission or liberation? Academy of Management Executives, 6(2), 43-54.
51. Janis, I. (1982). Groupthink: Psychological studies of policy decisions and fiascoes (2nd ed.). Boston: Houghton Mifflin.
52. Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305-360.
53. Judge, T. A., Piccolo, R. F., & Kosalka, T. (2009). The bright and dark sides of leader traits: A review and theoretical extension of the leader trait paradigm. The Leadership Quarterly, 20, 855-875.
54. Kahle, L. R., & Goff Timmer, G. (1983). A theory and method for studying values. In L. R. Kahle (Ed.), Social values and social change: Adaptation to life in America (pp. 43-69). New York: Praeger.
55. Kahneman, D., & Tversky, A. (1979). Prospect theory: An analysis of decision under risk. Econometrica, 47(2), 263-292.
56. Kaplan, R. S., & Norton, D. P. (1992). The balanced scorecard-measures that drive performance. Harvard Business Review, 70(1), 71-79.
57. Kesner, I. F., Victor, B., & Lamont, B. T. (1986). Research Notes. Board composition and the commission of illegal acts: An investigation of Fortune 500 companies. Academy of Management Journal, 29(4), 789-799.
58. Kets de Vries, M. F. R. (1993). Leaders, fools, and imposter: Essays on the psychology of leadership. San Francisco: Jossey-Bass.
59. Klein, K. J., & House, R. (1995). On fire: Charismatic leadership and levels of analysis. Leadership Quarterly, 6, 183-198.
60. Knights, D., & O'Leary, M. (2006). Leadership, ethics and responsibility to the other. Journal of Business Ethics, 67(2), 125-137.
61. Kohlberg, L. (1969). Stage and sequence: The cognitive developmental approach to socialization. In D. A. Goslin (Ed.), Handbook of socialization theory and research (pp. 347-480). Chicago: Rand McNally.
62. MacIntyre, A. C. (1981). After virtue: A study in moral theory. Notre Dame, IN: University of Notre Dame Press.
63. MacLean, T. (2008). Framing and organizational misconduct: A symbolic interactionist study. Journal of Business Ethics, 78, 3-16.
64. March, J. G., & Shapira, Z. (1987). Managerial perspectives on risk and risk taking. Management Science, 33, 1404-1418.
65. March, J. G., & Shapira, Z. (1992). Variable risk preferences and the focus of attention. Psychological Review, 99, 172-183.
66. Marcus, B., & Schuler, H. (2004). Antecedents of counterproductive behavior at work: A general perspective. Journal of Applied Psychology, 89, 647-660.
67. McCormick, I., & Burch, G. (2005). Snakes in suits: Fear and loathing in corporate clothing. New Zealand Management, 76, 34-35.
68. Minoja, M., Zollo, M., & Coda, V. (2010). Stakeholder cohesion, innovation, and competitive advantage. Corporate Governance: An International Journal of Business in Society, 10(4), 395-405.
69. Moberg, D. J. (1997). On employee vice. Business Ethics Quarterly, 7, 41-60.
70. Morosetti, P., & Zona, F. (2004). Enron: Giochi d'azzardo. Strategie ed errori: La lezione Enron. Milano: Egea.
71. Morrison, A. (2001). Integrity and global leadership. Journal of Business Ethics, 31(1), 65-76.
72. Palmer, T. B., & Wiseman, R. M. (1999). Decoupling risk taking from income stream uncertainty: A holistic model of risk. Strategic Management Journal, 20(11), 1037-1062.
73. Pfarrer, M. D., Decelles, K. A., Smith, K. G., & Taylor, M. S. (2008). After the fall: Reintegrating the corrupt organization. Academy of Management Review, 33(3), 730-749.
74. Pinto, J., Leana, C. R., & Pil, F. K. (2008). Corrupt organizations or organizations of corrupt individuals? Two types of organization-level corruption. Academy of Management Review, 33(3), 685-709.
75. Rayburn, J. M., & Rayburn, L. G. (1996). Relationship between Machiavellianism and Type A personality and ethical-orientation. Journal of Business Ethics, 15, 1209-1219.
76. Reed, A, I. I., & Aquino, K. F. (2003). Moral identity and the expanding circle of moral regard toward out-groups. Journal of Personality and Social Psychology, 84, 1270-1286.
77. Rokeach, M. (1973). The Nature of Human Values. New York: Free Press.
78. Roll, R. (1986). The hubris hypothesis of corporate takeovers. Journal of Business, 59(2), 197-216.
79. Rosenthal, S. A., & Pittinsky, T. L. (2006). Narcissistic Leaders. The Leadership Quarterly, 17, 617-633.
80. Scott, E. D. (2002). Organizational moral values. Business Ethics Quarterly, 12(1), 33-55.
81. Shafer, W. E., & Simmons, R. S. (2008). Social responsibility, Machiavellianism and tax avoidance. Accounting, Auditing & Accountability Journal, 21, 695.
82. Shamir, B., House, R. J., & Arthur, M. B. (1993). The motivational effects of charismatic leadership: A self-concept based theory. Organization Science, 4, 577-594.
83. Staw, B. M., & Szwajkowski, E. (1975). The scarcity-munificence component of organizational environments and the commission of illegal acts. Administrative Science Quarterly, 20(3), 345-354.
84. Treviño, L. K. (1986). Ethical decision making in organizations: A person-situation interactionist model. Academy of Management Review, 11, 601-617.
85. Treviño, L. K., & Youngblood, S. A. (1990). Bad apples in bad barrels: A causal analysis of ethical decision-making behaviour. Journal of Applied Psychology, 75, 378-385.
86. Waldman, D. A., & Yammarino, F. J. (1999). CEO charismatic leadership: Levels-of-management and levels-of-analysis effects. Academy of Management Review, 24(2), 266-285.
87. Weber, J., & Wasieleski, D. (2001). Investigating influences on managers' moral reasoning: The impact of context and personal and organizational factors. Business & Society, 40, 79-110.
88. Wink, P. (1992). Three narcissism scales for the California Q-set. Journal of Personality Assessment, 58(1), 51-66.
89. Winter, S. J., Stylianou, A. C., & Giacalone, R. A. (2004). Individual differences in the acceptability of unethical information technology practices: The case of machiavellianism and ethical ideology. Journal of Business Ethics, 54, 275-296.
90. Wiseman, R. M., & Gomez-Mejia, L. R. (1998). A behavioural agency model of managerial risk taking. Academy of Management Review, 23(1), 133-153.
91. Yin, R. K. (1994). Case study research: Design and methods (2nd ed.). Newbury Park, CA: SAGE.
92. Zahra, S. A., Priem, R. L., & Rasheed, A. A. (2005). The antecedents and consequences of top management fraud. Journal of Management, 31(6), 803-828.
93. Zona, F. (2012). Corporate investing as a response to economic downturn: Prospect theory, the behavioural agency model and the role of financial slack. British Journal of Management. Article first published online March 6, 2012. doi: 10. 1111/j. 1467-8551. 2012. 00818. x.
94. Zona, F., & Zattoni, A. (2007). Beyond the black box of demography: Board processes and task effectiveness within Italian firms. Corporate Governance: An International Review, 15(5), 852-864.