The dissipation of corporate accountability: Deaths of the elderly in for-profit care homes during the coronavirus pandemic

Cameron Graham, Darlene Himick and Pier-Luc Nappert

CRITICAL PERSPECTIVES ON ACCOUNTING, 2024, vol. 99, issue C

Abstract: The COVID-19 pandemic has raised serious questions about corporate accountability, exposing how poorly our systems of corporate accountability function under pressure. This paper examines one industry and jurisdiction where this problem is particularly visible, for-profit care homes for the elderly in Ontario, Canada (where the industry is called “long-term care” [LTC]). LTC companies continued to pay bonuses to executives and dividends to investors while COVID-related deaths mounted in their facilities. What does this tell us about how society holds companies accountable for their actions? This paper focuses on two highly institutionalized systems of accountability in the LTC industry in Ontario, namely healthcare governance and financial governance. We examine these two systems in the context of public pressure for regulatory action, pressure that has manifested in mainstream media coverage, social media outrage, and the threat of civil lawsuits. We compare the efficacy of healthcare and financial governance in this industry using a theoretical framework drawn from accountability literature, and explore the possibility of legal consequences for LTC corporations under corporate criminal law. We show how these systems together serve to dissipate corporate accountability through a fragmented, inadequate system of conflicting governance mechanisms, despite making a show of accountability rituals. We argue that these systems work together to divide the moral community in which corporations exist and where meaningful accountability might be possible, facilitating the misrecognition of the “corporate imaginary” as an accountable entity.

Keywords: COVID; Eldercare; Long-term care; Investors; Healthcare; Law; Media; Accountability (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:crpeac:v:99:y:2024:i:c:s1045235423000461

DOI: 10.1016/j.cpa.2023.102595

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