Danger signs of unethical behavior: How to determine if your firm is at ethical risk

Cooke, Robert Allan

doi:10.1007/bf00382962

Cited by 26 publications

(11 citation statements)

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“…The phrase “profit is king” denotes a dedication to short‐term revenues above long‐term considerations and can create a climate where unethical behaviour thrives (Cooke, 1991; Trevino and Nelson, 1995, 1999). It tends to promote an unrealistic belief that everything is about making money and rules of morality may be seen as obstacles or impediments to making money (Wolfe, 1988).…”

Section: Analysis and Discussionmentioning

confidence: 99%

Leadership, Culture and Employee Deceit: the case of the National Australia Bank

Dellaportas

Cooper

Braica

2007

Corporate Governance

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The National Australia Bank (NAB), one of Australia's largest banks, announced losses in 2004 of AUD$360 million due to unauthorised foreign currency trading activities by four employees who incurred and deceptively concealed the losses. The NAB had in place risk limits and supervision to prevent trading desks ever reaching positions of this magnitude. However, the risk management policies and procedures proved ineffective. The purpose of this paper is to analyse the deceit, via a content analysis of official investigative reports and other published documents, to determine the extent to which the Bank's culture and leadership may have influenced the rogue traders' behaviour. The findings suggest that cultural issues, and the role played by the Bank's leaders, were influential in creating a profit-driven culture that ultimately impacted the Bank's foreign exchange operating activities. Copyright (c) 2007 The Authors; Journal compilation (c) 2007 Blackwell Publishing Ltd.

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Section: Analysis and Discussionmentioning

confidence: 99%

Leadership, Culture and Employee Deceit: the case of the National Australia Bank

Dellaportas

Cooper

Braica

2007

Corporate Governance

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“…Arguably, in all cases, there was a preoccupation by managers with short-term revenue generation taking precedence over long-term considerations of the risks associated with a corrupt corporate culture. As found by Cooke (1991), Trevino and Nelson (1999) and Dellaportas et al (2007), this short-term view can create an environment in which a corrupt culture can manifest itself and lead to the problems highlighted above.…”

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confidence: 89%

Corporate Culture and Greed — The Case of the Australian Wheat Board

Fallon

Cooper

2015

Australian Accounting Review

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Between 1999 and 2002, the Australian Wheat Board (AWB) was involved in an elaborate bribery, or ‘kickback’, scheme involving the illicit payment of A$300 million to the Iraq government for supposed ‘transportation fees’ that were funnelled to the Saddam Hussein regime. This was clearly in breach of the United Nations trade sanctions and was apparently perpetrated by the AWB to secure continued sales with the lucrative Iraqi market. This paper aims to gain further insight into how a corporate culture can lead to greed, corruption and deception. Specifically, this study aims to add to the literature by analysing, using Schein's (1997, 2004) theoretical framework, a case on the development of a corrupt corporate culture. Content analysis of official investigative reports and other published documents is used to determine the extent to which the AWB's corporate culture and leadership may have influenced the behaviour of senior managers. The findings indicate that the culture within the AWB fostered an environment in which senior managers placed sales and profits above the sanctions clearly enunciated by the United Nations.

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“…People figuratively close their ears and eyes to what they do not want to hear or see. Such a situation is often characterized by ''negative information blockage'' (Bishop, 1991) and a tendency to ''kill the messenger'' (Kirrane, 1990), ''screen bad news'' (Bovens, 1998), or ''pay lip service'' (Cooke, 1991).…”

Section: The Organizational Virtue Of Discussabilitymentioning

confidence: 99%

Developing and testing a measure for the ethical culture of organizations: the corporate ethical virtues model

2008

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SummaryBased on four interlocking empirical studies, this paper initially validates and refines the Corporate Ethical Virtues Model which formulates normative criteria for the ethical culture of organizations. The findings of an exploratory factor analysis provide support for the existence of eight unidimensional subscales: clarity, congruency of supervisors, congruency of management, feasibility, supportability, transparency, discussability, and sanctionability. The findings of a confirmatory factor analysis show that the overall fit of the model is quite high. Evidence of convergent and discriminant validity is also found. The resulting 58-item self-reporting questionnaire is a useful tool that can be used in future research and by managers in assessing the ethical culture of their organization.

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Danger signs of unethical behavior: How to determine if your firm is at ethical risk

Cited by 26 publications

References 0 publications

Leadership, Culture and Employee Deceit: the case of the National Australia Bank

Leadership, Culture and Employee Deceit: the case of the National Australia Bank

Corporate Culture and Greed — The Case of the Australian Wheat Board

Developing and testing a measure for the ethical culture of organizations: the corporate ethical virtues model

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