Renee Gendron MA Presented at the 2010 ASAC Conference May 2125 2010 Regina SK Organizational culture has been defined as written and unwritten expectations of behavior rules and norms that influence members of the organizationRoss 1995 p 346 ID: 799393
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Slide1
By
Christie Husted PhD, Capella University
Renee Gendron MA,
Presented at the 2010 ASAC Conference
May 21-25, 2010 Regina, SK
Slide2Organizational 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)
Slide3Levels 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 party's strengths (Cady & Soukup, 2008)
Slide42008 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
Slide5Slide6Arthur Levitt, Former Chairman of the
Securities 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).
Slide7Group think occurs in a situation in which a
group is extremely cohesive and there is a strong
desire 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) miniguards: people
protect group from outside information
Slide8Organisational culture starts at the top
Rey (2002).
Without that creative dynamic, of being able to openly constructively criticize, an environment of fear, antipathy and stagnation sets in.
Slide9Truab & 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
Slide10Argument 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
Slide11Internal 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
Slide12A cult was defined by Robbins and
Anthony as a group having manipulative,
authoritative leadership and coercive
power. Likely to have:
Authoritarian leaders
Totalitarianist in their organization
Have a specific form of indoctrination (Richardson, 1993, p. 351)
Slide13Pavlos' Points on a cult
Business Cult – like Behaviour
A cult has a living leader in which the direction of the cult is set by the revelations of the leader
A living leader;
whose charisma is used to manipulate followers into
working towards
the leader’s personal
vision, not the company vision
A cult's religious leader has absolute authority over the group
A person who micromanages, who 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
Slide14Pavlos' Points on a cult
Business Cult – like Behaviour
A cult promises converts salvation through hard work and loyalty
In business terms, this can be translated into greater 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 leader
Cults require the members do demeaning work for the cause
Those who consistently question the leader
’
s vision 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
Slide15Pavlos' Points on a cult
Business Cult – like Behaviour
Cults promise everlasting salvation for their faithful followers
As long as members continue to do what the leader tells them to do, they will maintain high financial rewards
Converts must remove themselves from the greater society
Increasingly the business becomes more opaque, even to auditors and regulators
Cults strongly discourage critical thinking
The compan
y’s leader surrounds him/herself with yes people and encourages group think.
Slide16Pavlos' Points on a cult
Business Cult – like Behaviour
Cults create strong feelings of dependency between cult members
Workers directly involved in the fraud or criminal act become increasingly hostile to outsiders.
Cults indoctrinate members through extreme personality, attitude, belief and behavioral change techniques
Workers become increasingly consumed by their employment, their personal lives are out of balance with their work lives.
Cults practice rituals which are psychologically unwholesome to members
Work related performance is increasingly judged by hard metrics instead of a combination of hard and soft metrics.
Slide17Too 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
Slide18Superficial charm
Grandiosity
Manipulation
Deceit
Lack of remorse
Shallow affect
Failure to accept responsibility
Failure to conform to social norms
Impulsivity
Irritability and/or aggressiveness
Disregard for safety for self or others
Lack of self-awareness
Lack of self-monitoring
Inability to manage emotions
Self motivation
Inability to relate well to others
Slide19Dr. Christie Husted
chusted[@]sbmconsultingservices.com
Renée Gendron, MA, Ph.d candidate
reneegendron[@]hotmail.com or
rgendron[@]ciian.org
Folders with full article and presentation available
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Biggest Problem, It's the Interpersonal Relationships. Here is a Way to Move Your Board from
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Slide23Piquero, N., & Piquero, A. (2006). Control balance and exploitative corporate crime.
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(2), 397-430.
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