This study looks at how the corporate governance of family-owned business groups, the most dominant form of private sector organising in Asia, deals with different forms of corruption during the course of common business transactions. As a part of an ethnographic study conducted in 2007 to look at the impact of corporate governance reforms in the Philippines, one of the emergent themes from the study was the presence of significant corruption in the business environment of the country. A total of (...) 40 semi-structured interviews were conducted with board members from business groups and senior public sector officials supplemented by document analysis of media articles and other text and participant observation. Using Rose-Ackerman’s typology of petty and grand corruption, results show the dilemmas faced when trying to operate within the precepts of corporate governance whilst dealing with the practical reality of corruption in public sector institutions. The results of the study provide empirical evidence into corruption’s impact on Asian business groups and contribute to knowledge on the links between strong institutions and the efficacy of corporate governance. (shrink)

This study looks at how the corporate governance of family-owned business groups, the most dominant form of private sector organising in Asia, deals with different forms of corruption during the course of common business transactions. As a part of an ethnographic study conducted in 2007 to look at the impact of corporate governance reforms in the Philippines, one of the emergent themes from the study was the presence of significant corruption in the business environment of the country. A total of (...) 40 semi-structured interviews were conducted with board members from business groups and senior public sector officials supplemented by document analysis of media articles and other text and participant observation. Using Rose-Ackerman’s typology of petty and grand corruption, results show the dilemmas faced when trying to operate within the precepts of corporate governance whilst dealing with the practical reality of corruption in public sector institutions. The results of the study provide empirical evidence into corruption’s impact on Asian business groups and contribute to knowledge on the links between strong institutions and the efficacy of corporate governance. (shrink)

Despite universal agreement that corruption is norm-deviant, the criteria required to ascertain deviance remain elusive. The problem is even more pronounced for organizational corruption, not least because the construct remains somewhat ambiguous and is often conflated with proximate management constructs like antisocial or unethical organizational behavior. In this article, I identify the suitable criteria for the determination of deviance in organizational corruption and determine whether it is, indeed, antisocial or unethical. In order to minimize ambiguity, I first limit the scope (...) of organizational corruption to corruption within, rather than by, organizations, which is most conceptually challenging insofar as the aforementioned questions are concerned. I then conclude that organizational corruption should be specified solely with respect to the focal organization’s normative framework; it is anti-organizational rather than antisocial. Higher level normative prescriptions that arise from the organization’s embedding within its social context remain relevant, but only insofar as they are incorporated within the organization’s normative framework. Moreover, I argue that organizational corruption is not necessarily unethical, since the moral evaluation of an organizational act is, in principle, distinct from the determination of its deviance to organizational norms. (shrink)