Scandal into Crisis

Petter Gottschalk

Chapter 12 in Convenience Orientation in Corporate Crime:Corrective Recovery Responses for Compliance and Conformance, 2025, pp 251-267 from World Scientific Publishing Co. Pte. Ltd.

Abstract: Sudden scandals frequently develop into long-lasting crises as discussed in the current case study of corporate crime at Danske Bank in Denmark. This chapter presents the case in terms of both legal compliance violations and social conformance violations where the latter had serious consequences for individuals as well as the organization. Lack of conformance had consequences for Danske Bank top executives and board members who were fired, sued by shareholders, and experiencing cuts in compensation packages. Lack of conformance had serious consequences for the bank as well losing customers and stock values. The crisis recovery strategy of scapegoating was not successful. Scapegoating is an attempt of diverting attention from the organization and transferring responsibility for wrongdoing to a few potentially symbolic figures. By scapegoating, the responsibility for the act or event is transferred from the firm to one or few figures that might be exposed publicly, such as dismissed top executives…

Keywords: Corporate Compliance; Corporate Conformance; Convenience Theory; Corporate Scandal; Crisis Management; Destructive Leadership; Recovery Strategy; Recovery Triggers (search for similar items in EconPapers)
JEL-codes: G34 K42 L21 M14 (search for similar items in EconPapers)
Date: 2025
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