Research Companion to the Dysfunctional Workplace
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Research Companion to the Dysfunctional Workplace

Management Challenges and Symptoms

Edited by Janice Langan-Fox, Cary L. Cooper and Richard J. Klimoski

A work exposing and exploring the phenomena of the dysfunctional workplace is long overdue. This fascinating book does just that, uncovering the subversiveness, counter-productive behaviour and unspoken ‘issues’ that managers struggle with on a daily basis.
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Chapter 14: The Role of Organizational Practices and Routines in Facilitating Normalized Corruption

Mahendra Joshi, Vikas Anand and Kevin Henderson


Mahendra Joshi, Vikas Anand and Kevin Henderson Introduction In this chapter we argue that firms become highly susceptible to normalized corruption when organizational practices that are essential for the functioning of the firm assume a taken-for-granted character. When mindlessly enacted, many common practices are likely to increase the probability that employees will rationalize unethical acts, that newcomers will be easily socialized into ongoing corruption, and that corruption will become institutionalized in organizational processes and routines. For example, some compensation characteristics can lock in employees to develop standards of living that cannot be maintained easily in other jobs and force them to rationalize their immoral acts; certain types of organizational structures may distance employees from the affected stakeholders and increase chances of employees engaging in unethical behaviors without conscious thought about their actions; an imperfectly communicated code of ethics can proliferate corruption instead of reducing it; and finally the ways of handling the discovery of immoral acts can influence whether the organization is likely to face an ongoing corruption in future. We highlight these issues and suggest ways in which organizations can guard themselves against the harmful unethical consequences of routine organizational practices. In the wake of several recent corporate scandals, we have witnessed a tremendous amount of scholarly work in improving our understanding of organizational corruption. Several researchers have offered frameworks that help us understand how corruption sets in and perpetuates within firms. For example, recently, Ashforth and Anand (2003) pointed out that corrupt practices can prevail...

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