The contagion of corruption: a model for understanding systemic ethical failures

James F. Gilsinan, James E. Fisher, Muhammad Q. Islam, Henry M. Ordower and Wassim Shahin

Journal of Financial Crime, 2023, vol. 30, issue 5, 1208-1219

Abstract: Purpose - Efforts to combat corruption in society often seem to resemble a game of whack-a-mole. When dealt with in one sector of the society, it pops up in another, and while that is being dealt with, it again raises its ugly head in the place where it had appeared to be suppressed. This paper aims to present a model of how corruption spreads based on an alternative view of its main components. Design/methodology/approach - Key elements of the model are analyzed by applying them to particular examples of systemic ethical failures using a variety of mini cases across a number of policy areas. Findings - Corruption is based on conformity rather than rule breaking. Furthermore, personal or corporate gains are not sufficient as causes of ethically problematic actions. More fundamentally, survival of the organizational enterprise is the driving force in spreading corrupt behavior. Practical implications - This paper concludes with a discussion of the model’s efficacy for formulating legislative solutions for ethical lapses in a particular policy area. Again, a mini cases study is used to illustrate the main points of the argument. Originality/value - Viewing systemic ethical failures through this alternative lens may well result in more effective ways to combat the spread of corrupt practices.

Keywords: Corruption; Regulatory failure; Organizational survival tactics (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:eme:jfcpps:jfc-02-2023-0021

DOI: 10.1108/JFC-02-2023-0021

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