The Rogue Myth

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  1. The Girl in the Wicker Basket!
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  3. The Case of the Retired Justice: How Would Justice John Paul Stevens Have Voted in J. McIntyre Machinery, Ltd. v. Nicastro? (Volume 63, Book 3 9). However, this is not always the case. The chimera of personal vs. Here are five reasons why personal corruption cannot be meaningfully separated from organizational corruption. Many times CEOs and Board members deny having any knowledge of bribes being paid in their company.

The truth is that, as classical management theories indicated, management is responsible for, above all, integrating employees in a system, by communicating rules, norms, processes and tasks. Hence, if a bad apple grows, there has to be something wrong in this integration mechanism. Senior management does not have to collude in the payment of bribes by middle management to be responsible for the culture in which such bribes took place.

Companies work as social groups. Each member has individual motivations, but works to pursue a common goal, which is the proliferation or duration of business.

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But motivations are primarily psychological constructs. If a bad manager is motivated to achieve performance targets by any means necessary, is this only his fault? Who or what transmits motivation patterns to the brains of employees? What organizational culture conditions allow unethical motivations to take precedence over integrity standards? Failure to answer to some of these questions make up what some analysts call institutional blindness.

A simple statistic reveals that a typical white-collar worker spends one third of his entire life at work. This alone stresses how difficult it can be to separate business incentives from organizational integrity, when it comes to individual choices. Individuals learn about rules by being part of a culture, society and organizations.

Can you solve the rogue AI riddle? - Dan Finkel

Rationalization the way our psyche accepts, internalizes and makes usable rules happens when we deal with other people. Our personal norms can conflict with those of the workplace, but there are several cognitive mechanisms through which we can accept them, and justify them. Cognitive dissonance , for instance, is one mechanism of the brain which seeks to create alignment between what we find uncomfortable and our reaction to that.

Hence, I work to make sure I behave as others do.

One of the most interesting questions about corruption is whether these two persons are really alone, inspired by evil or greed, or whether they are operating on behalf of other people or the organization as a whole, as intermediaries or scapegoats. An organization with a trustworthy leader and an ethical culture, constantly reinforces the values of the organization the soft stuff. I particularly like the discussion on the role of leadership and culture. For them the Tone at the Top is the country manager. Shah Contributing Editor Russell A. The problem with such explanations are that they are not borne out by reality, which strongly suggests that the environment is just as important at the individual motivation.

These are imperfect mechanisms but they serve one of the most innate needs of the human being, which is building social relationships. One of the most established patterns of human behavior is reciprocity. If I do something for a person I am expecting something in exchange, at some point in time. Gift-giving customs are based on this simple idea. However, reciprocity functions in different ways across cultures, and across organizational cultures. If by working in an organization I learn that giving a proper importance to reciprocate a favor is one of the unspoken norms, I will try to adapt to it.

Some cultures are not very comfortable with this practice, and these are cultures where corruption is less an issue. But the contrary is also true.

If I am socialized in a company where higher values such as integrity and transparency are prioritized, other norms such as reciprocity may not come to the forefront. If my sense of reciprocity is built more towards my organization and less towards single individuals, it would be much more difficult to fall into blackmailing traps. This post highlights some of human tendencies in group behavior that can influence corruption in an organizational environment.

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Organizational psychology and anthropology have much to teach us about corruption, but this learning requires us to move beyond "bad apple" theories of individual conduct and consider the contextual environment and hidden drivers that affect us all. He has consulted for business, public administration, and NGOs on integrity, cultural awareness, and strategy at management, educational, and training levels. He can be contacted here. Alison Taylor is director of advisory services at BSR , a non-profit consultancy and company network focused on sustainability and CSR.

The Myth of the Rogue Employee

Our Lists and More Our Lists. As long as 24 years ago, Lynn S. Ethics, after all, has nothing to do with management. In fact, ethics has everything to do with management.

The latest Tweets from Myth Rogue (@MythRogue). Turning invisible and sneaking up on foos. the underbelly. Through an analysis of a number of 'rogue trader' events that occurred over the last two decades, some light will be shed on the underlying causes of the 'rogue.

Ethics, then, is as much an organizational as a personal issue. The drafters of the Foreign Corrupt Practices Act FCPA recognized this when they included the requirement for internal controls to be included in the law. Yet the myth of the rogue employee is more than a simple myth. It is also a dangerous myth. It is dangerous because it excuses negligent or intentional corporate behavior. Yet it appears to accept, at least in part, Mr. In response to a bribery scheme confined to a country, the company will immediately seek refuge in the myth of the rogue employee.

If only life were that simple. There are other employees with whom the person interacts, there are financial controls in place to protect against such misconduct, there are reporting mechanisms for employees to report suspicious activity, and there is likely to be someone in the organization who is close enough to the bad actor, or responsible for the conduct of the bad actor, and who suspected or should have suspected that the actor was engaged in misconduct.

On the surface, it sounds appealing but when subject to scrutiny, the concept starts to wilt under the light of analysis. A company with a culture of ethics and compliance will take a very different tack when confronting misconduct committed by a single or small group of employees. The board, CEO, senior managers and CCO will seek to find out how the conduct occurred, why it was not detected and what could have caused the employee to commit such misconduct. In the end, a company that is committed to an ethical culture can use the experience to build an even stronger culture by frankly assessing the state of the company, its controls and possible compliance weaknesses.

It is easy for people to scapegoat others and then turn a blind eye to how their own behaviors or failures to act may have contributed to creating an environment in which an employee can engage in misconduct and go undetected until discovered.