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Author:Kulik, B. W.
O'Fallon, M. J.
Salimath, M. S.
Title:Do competitive environments lead to the rise and spread of unethical behavior? Parallels from Enron
Journal:Journal of Business Ethics
2008 : DEC III, VOL 83:4, p. 703-723
Index terms:social environment
competition
business ethics
diffusion
corruption
Freeterms:Enron
Language:eng
Abstract:The article aims to develop a grassroots model that depicts the structural factors influencing individuals' unethical behavior and its spread within the organization. The economics justification of the benefits of competition, and how it can be used dubiously to rationalize the use of certain structural aides, is discussed. The authors develop a theory of planned behavior that is extended from the individual level to the organization's social network. The model is then employed in predicting the conditions that may lead to unethical behavior. It is found that the network conditions supporting unethical behavior also promote its diffusion. As an example, the authors use the infamous case of Enron.
SCIMA record nr: 273435
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