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Organizational Corruption as Theodicy

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  • D. Kayes

Abstract

This paper draws on Weber’s theodicy problem to define organizational corruption as the emerging discrepancy between experience and normative expectation. Theodicy describes the attempts to explain this discrepancy. The paper presents four normative principles enlisted by observers to respond to perceived corruption: moral dilemma, detachment, systematic regulation, and normative controls. Consistent with social construction, these justifications work to either reaffirm or challenge prevailing social norms in the face of confusing events. An exemplar case involves perceived corruption in the business of mountain climbing as represented through the 1996 Mt. Everest climbing disaster. The events illustrate how theodicy informs descriptive accounts of corruption and expose two limitations of normative models of ethics. Copyright Springer Science+Business Media, Inc. 2006

Suggested Citation

  • D. Kayes, 2006. "Organizational Corruption as Theodicy," Journal of Business Ethics, Springer, vol. 67(1), pages 51-62, August.
    • Handle: RePEc:kap:jbuset:v:67:y:2006:i:1:p:51-62
    DOI: 10.1007/s10551-006-9004-x
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    References listed on IDEAS

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    1. Andrew C. Wicks & R. Edward Freeman, 1998. "Organization Studies and the New Pragmatism: Positivism, Anti-positivism, and the Search for Ethics," Organization Science, INFORMS, vol. 9(2), pages 123-140, April.
    2. Weaver, Gary R. & Trevino, Linda Klebe, 1994. "Normative And Empirical Business Ethics: Separation, Marriage Of Convenience, Or Marriage Of Necessity?," Business Ethics Quarterly, Cambridge University Press, vol. 4(2), pages 129-143, April.
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    Cited by:

    1. Luo, Yadong & Han, Binjie, 2009. "Graft and business in emerging economies: An ecological perspective," Journal of World Business, Elsevier, vol. 44(3), pages 225-237, July.
    2. Lingyun Xiong & Lijuan Xiao & Min Bai & Yafeng Qin & Lijuan Yang, 2023. "The religion effect on corporate cash holding in China: Buddhism and Taoism," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 28(4), pages 4420-4457, October.
    3. Maria Halter & Maria Arruda & Ralph Halter, 2009. "Transparency to Reduce Corruption?," Journal of Business Ethics, Springer, vol. 84(3), pages 373-385, February.
    4. Agata Stachowicz-Stanusch & Aditya Simha, 2013. "An empirical investigation of the effects of ethical climates on organizational corruption," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 14(sup1), pages 433-446, June.
    5. Hossain, Ashrafee Tanvir & Hossain, Takdir & Kryzanowski, Lawrence, 2021. "Political corruption and corporate payouts," Journal of Banking & Finance, Elsevier, vol. 123(C).
    6. Eric Breit, 2010. "On the (Re)Construction of Corruption in the Media: A Critical Discursive Approach," Journal of Business Ethics, Springer, vol. 92(4), pages 619-635, April.
    7. Ashrafee Tanvir Hossain & Lawrence Kryzanowski, 2021. "Political corruption shielding and corporate acquisitions," The Financial Review, Eastern Finance Association, vol. 56(1), pages 55-83, February.
    8. McMullen, Jeffery S. & Kier, Alexander S., 2016. "Trapped by the entrepreneurial mindset: Opportunity seeking and escalation of commitment in the Mount Everest disaster," Journal of Business Venturing, Elsevier, vol. 31(6), pages 663-686.

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