Abstract
Although theory refers to organizational culture as an important variable in corrupt organizations, only little empirical research has addressed the characteristics of a corrupt organizational culture. Besides some characteristics that go hand in hand with unethical behavior and other features of corrupt organizations, we are still not able to describe a corrupt organizational culture in terms of its underlying assumptions, values, and norms. With a qualitative approach, we studied similarities of organizational culture across different corrupt organizations. In this study, we performed content analysis on interviews of 14 independent experts about their experience with corrupt organizations. With this approach, we gained insights about different corrupt organizations spanning different branches (e.g., government, foreign trade, pharmacy, sports, building industry). We found that corrupt organizations perceive themselves to fight in a war, which leads to their taken-for-granted assumption that “the end justifies the means”. This assumption inspires many values and norms of the organizational culture. An important value in a corrupt organization is “security”, and an important norm is punishment of deviant (i.e., non-corrupt) behavior. Furthermore, managers and employees differ in their perception of organizational culture. While the management endorses values, such as success, results, and performance, and implements these values in their norms of goal setting, employees make use of rationalization strategies and endorse values of security and team spirit.
This is a preview of subscription content, access via your institution.


Notes
We translated all quotations (except our English interview) into the English language. Furthermore, to ensure anonymity, we removed all names of organizations.
We translated all interview questions into English.
References
Alvesson, M. (2011). Organizational culture: Meaning, discourse, and identity. In N. M. Ashkanasy, C. P. M. Wilderom, & M. F. Peterson (Eds.), Organizational culture and climate (pp. 11–28). Los Angeles: Sage.
Anand, V., Ashforth, B. E., & Joshi, M. (2005). Business as usual: The acceptance and perpetuation of corruption in organizations. Academy of Management Executive, 19(4), 9–23.
André, R. (2008). Organizational behavior. An introduction to your life in organizations. Upper Saddle River, NJ: Pearson Prentice Hall.
Ashforth, B. E., & Anand, V. (2003). The normalization of corruption in organizations. Research in Organizational Behavior, 25, 1–52.
Ashforth, B. E., Gioia, D. A., Robinson, S. L., & Treviño, L. K. (2008). Introduction to special topic forum: Re-viewing organizational corruption. Academy of Management Review, 33(3), 670–684.
Ashforth, B. E., & Mael, F. (1989). Social identity theory and the organization. Academy of Management Review, 14(1), 20–39.
Avakian, S., & Roberts, J. (2012). Whistleblowers in organisations: Prophets at work? Journal of Business Ethics, 110(1), 71–84.
Beenen, G., & Pinto, J. (2009). Resisting organizational-level corruption: An interview with Enron Whistle-Blower Sherron Watkins. Academy of Management Learning and Education, 8(2), 275–289.
Berry, B. (2004). Organizational culture: A framework and strategies for facilitating employee whistleblowing. Employee Responsibilities and Rights Journal, 16(1), 1–11.
Brief, A. P., Buttram, R. T., & Dukerich, J. M. (2001). Collective corruption in the corporate world: Toward a process model. In M. E. Turner (Ed.), Groups at work: Advances in theory and research (pp. 471–499). Hillsdale, NJ: Erlbaum.
Brucke, R., Tomlinson, E., & Cooper, C. (2010). Crime and corruption in organizations. Why it occurs and what to do about it. Surrey: Gower Publishing.
Chang, J-j, & Lai, C-c. (2002). Is the efficiency wage efficient? The social norm and organizational corruption. Scandinavian Journal of Economics, 104(1), 27–47.
Cohen, D. V. (1995). Ethics and crime in business firms: Organizational culture and the impact of anomie. In F. Adler & W. Laufer (Eds.), Advances in criminological theory (Vol. 6, pp. 183–206). The Legacy of Anomie Theory New Brunswick, NJ: Transaction Publishers.
Collins, J. D., Uhlenbruck, K., & Rodriguez, P. (2009). Why firms engage in corruption: A top management perspective. Journal of Business Ethics, 87(1), 89–108.
Conger, J. A., & Kanungo, R. N. (1998). Charismatic leadership in organizations. Thousand Oaks, CA: Sage.
Craft, J. L. (2012). A review of the empirical ethical decision-making literature: 2004–2011. Journal of Business Ethics. doi:10.1007/s10551-012-1518-9 or http://link.springer.com/article/10.1007/s10551-012-1518-9/fulltext.html
Dahling, J. J., Chau, S. L., Mayer, D. M., & Gregory, J. B. (2012). Breaking rules for the right reasons? An investigation of pro-social rule breaking. Journal of Organizational Behavior, 33, 21–42.
DeCelles, K. A., & Pfarrer, M. D. (2004). Heroes or Villains? Corruption and the charismatic leader. Journal of Leadership and Organizational Studies, 11(1), 67–77.
Greenberger, D. B., Miceli, M. P., & Cohen, D. J. (1987). Oppositionists and group norms: The reciprocal influence of whistle-blowers and colleagues. Journal of Business Ethics, 6(7), 527–542.
Henik, E. (2008). Mad as hell or scared stiff? The effects of value conflict and emotions on potential whistle-blowers. Journal of Business Ethics, 80(1), 111–119.
Johnson, J. L., Martin, K. D., & Saini, A. (2011). Strategic culture and environmental dimensions as determinants of anomie in publicly-traded and privately-held firms. Business Ethics Quarterly, 21(3), 473–502.
Joshi, M., Anand, V., & Henderson, K. (2007). The role of organizational practices and routines in facilitating normalized corruption. In J. Langan-Fox, C. L. Cooper, & R. J. Klimoski (Eds.), Research companion to the dysfunctional workplace: Management challenges and symptoms (pp. 235–251). Cheltenham, Northampton: Edward Elgar Publishing.
Kaptein, M. (2011a). From inaction to external whistleblowing: The influence of the ethical culture of organizations on employee responses to observed wrongdoing. Journal of Business Ethics, 98(3), 513–530.
Kaptein, M. (2011b). Understanding unethical behavior by unraveling ethical culture. Human Relations, 64(6), 843–869.
Kaptein, M., & Schwartz, M. S. (2008). The effectiveness of business codes: A critical examination of existing studies and the development of an integrated research model. Journal of Business Ethics, 77(2), 111–127.
Kish-Gephart, J. J., Harrison, D. A., & Treviño, L. K. (2010). Bad apples, bad cases, and bad barrels: Meta-analytic evidence about sources of unethical decisions at work. Journal of Applied Psychology, 95(1), 1–31.
Kluckhohn, F., & Strodtbeck, F. L. (1961). Variation in value orientation. New York: Row, Peterson and Company.
Levine, D. P. (2005). The corrupt organization. Human Relations, 58(6), 723–740.
Lok, P., & Crawford, J. (1999). The relationship between commitment and organizational culture, subculture, leadership style and job satisfaction in organizational change and development. Leadership and Organization, 20(7), 365–373.
Luo, Y. (2005). An organizational perspective of corruption. Management and Organization Review, 1(1), 119–154.
MacLean, T. L. (2008). Framing and organizational misconduct: A symbolic interactionist study. Journal of Business Ethics, 78(1–2), 3–16.
Martin, K. D., Johnson, J. L., & Cullen, J. B. (2009). Organizational change, normative control deinstitutionalization, and corruption. Business Ethics Quarterly, 19(1), 105–130.
Maruna, S., & Copes, H. (2004). Excuses, excuses: What have we learned from five decades of neutralization research?. Chicago: The University of Chicago.
Merton, R. K. (1938). Social structure and anomie. American Sociological Review, 3(5), 672–682.
Mesmer-Magnus, J. R., & Viswesvaran, C. (2005). Whistleblowing in organizations: An examination of correlates of whistleblowing intentions, actions, and retaliation. Journal of Business Ethics, 62(3), 277–297.
Miceli, M. P., Near, J. P., & Dworkin, T. M. (2009). A word to the wise: How managers and policy-makers can encourage employees to report wrongdoing. Journal of Business Ethics, 86(3), 379–397.
Miles, M. B., & Hubermann, A. M. (1994). An expanded sourcebook. Qualitative data analysis (2nd ed.). Thousand Oaks: Sage.
Misangyi, V. F., Weaver, G. R., & Elms, H. (2008). Ending corruption: The interplay among institutional logics, resources, and institutional entrepreneurs. Academy of Management Review, 33(3), 750–770.
Moreland, R. L., & Levine, J. M. (2001). Socialization in organizations and work group. In M. E. Turner (Ed.), Groups at work: Advances in theory and research (pp. 69–112). Hillsdale, NJ: Erlbaum.
Namey, E., Guest, G., Thairu, L., & Johnson, L. (2008). Data reduction techniques for large qualitative data sets. In G. Guest & K. MacQueen (Eds.), Handbook for team-based qualitative research (pp. 137–161). Lahnham, MD: Altamira.
O’Fallon, M. J., & Butterfield, K. D. (2005). A review of the empirical ethical decision making literature: 1996–2003. Journal of Business Ethics, 59(4), 375–413.
Palazzo, G., Krings, F., & Hoffrage, U. (2012). Ethical blindness. Journal of Business Ethics, 109(3), 323–338.
Palmer, D., & Maher, M. W. (2006). Developing the process model of collective corruption. Journal of Management Inquiry, 15(4), 363–370.
Park, C., & Keil, M. (2009). Organizational silence and whistle-blowing on IT projects: An integrated model. Decision Sciences, 40(4), 901–918.
Payne, R. L. (2000). Climate and culture: How close can they get? In N. M. Ashkanasy & C. P. M. Wilderom (Eds.), Handbook of organizational culture and climate (pp. 163–176). Thousand Oaks: Sage Publications.
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.
Pinto, J., Leana, C., & 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.
Rabl, T. (2011). The impact of situational influences on corruption in organizations. Journal of Business Ethics, 100(1), 85–101.
Rabl, T., & Kühlmann, T. M. (2008). Understanding corruption in organizations—Development and empirical assessment of an action model. Journal of Business Ethics, 82(2), 477–495.
Rehg, M. T., Miceli, M. P., Near, J. P., & van Scotter, J. R. (2008). Antecedents and outcomes of retaliation against whistleblowers: Gender differences and power relationships. Organizational Science, 19(2), 221–240.
Robinson, S. L., & Bennett, R. J. (1995). A typology of deviant workplace behaviors: A multidimensional scales study. Academy of Management Journal, 38(2), 555–572.
Rothschild, J., & Miethe, T. D. (1999). Whistle-blower disclosures and management retaliation: The battle to control information about organization corruption. Work and Occupations, 26(1), 107–128.
Russel, B. H. (2000). Social research methods. qualitative and quantitative approaches. Thousand Oaks: Sage Publications.
Schein, E. H. (1992). Organizational culture and leadership. San Francisco: Jossey-Bass.
Schweitzer, M. E., Ordóñez, L., & Douma, B. (2004). Goal setting as a motivator of unethical behavior. Academy of Management Journal, 47(3), 422–432.
Shover, N., & Hochstetler, A. (2002). Cultural explanation and organizational crime. Crime, Law and Social Change, 37(1), 1–18.
Sims, R. R., & Brinkmann, J. (2003). Enron ethics (or: culture matters more than codes). Journal of Business Ethics, 45(3), 243–256.
Spicer, A. (2009). The normalization of corrupt business practices: Implications for Integrative Social Contracts Theory (ISCT). Journal of Business Ethics, 88(4), 833–840.
Stackman, R. W., Pinder, C. C., & Connor, P. E. (2000). Values lost: Redirecting research on values in the workplace. In N. M. Ashkanasy & C. P. M. Wilderom (Eds.), Handbook of organizational culture and climate (pp. 37–45). Thousand Oaks: Sage Publications.
Tenbrunsel, A. E., & Messick, D. M. (1999). Sanctioning systems, decision frames and cooperation. Administrative Science Quarterly, 44(4), 684–707.
Transparency International. (2011). Bribes Payer Index 2011. Germany: Berlin.
Treviño, L. K., Butterfield, K. D., & McCabe, D. L. (2001). The ethical context in organizations: Influences on employee attitudes and behaviors. Business Ethics Quarterly, 8(3), 301–337.
Treviño, L. K., Weaver, G. R., & Reynolds, S. J. (2006). Behavioral ethics in organizations: A review. Journal of Management, 32(6), 951–990.
Treviño, L. K., & Youngblood, S. (1990). Bad appels in bad barrels. A causal analysis of ethical decision-making behavior. Journal of Applied Psychology, 75(4), 378–385.
Trice, H. M., & Beyer, J. M. (1993). The culture of work organizations. Upper Saddle River, NJ: Prentice Hall.
Turner, J. C., & Haslam, S. A. (2001). Social identity, organizations, and leadership. In M. E. Turner (Ed.), Groups at work: Advances in theory and research (pp. 25–66). Hillsdale, NJ: Erlbaum.
Umphress, E. E., Bingham, J. B., & Mitchell, M. S. (2010). Unethical behavior in the name of the company: The moderating effect of organizational identification and positive reciprocity beliefs on unethical pro-organizational behavior. Journal of Applied Psychology, 95(4), 769–780.
Vadera, A. K., Aguilera, R. V., & Caza, B. (2009). Making sense of whistle-blowing’s antecedents: Learning from research on identity and ethics programs. Business Ethics Quarterly, 19(4), 553–586.
Wolfe Morrison, E., & Milliken, F. J. (2000). Organizational silence: A barrier to change and development in a pluralistic world. The Academy of Management Review, 25(4), 706–725.
Zhang, J., Chiu, R., & Wei, L. (2009). Decision-making process of internal whistleblowing behavior in china: Empirical evidence and implications. Journal of Business Ethics, 88(1), 25–41.
Zyglidopoulos, S. C., & Fleming, P. J. (2008). Ethical distance in corrupt firms: How do innocent bystanders become guilty perpetrators. Journal of Business Ethics, 78(1–2), 265–274.
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
About this article
Cite this article
Campbell, JL., Göritz, A.S. Culture Corrupts! A Qualitative Study of Organizational Culture in Corrupt Organizations. J Bus Ethics 120, 291–311 (2014). https://doi.org/10.1007/s10551-013-1665-7
Received:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s10551-013-1665-7
Keywords
- Corruption
- Corrupt organization
- Employee and manager values, norms, underlying assumptions
- Organizational culture