TITLE

WHY "GOOD" FIRMS DO BAD THINGS: THE EFFECTS OF HIGH ASPIRATIONS, HIGH EXPECTATIONS, AND PROMINENCE ON THE INCIDENCE OF CORPORATE ILLEGALITY

AUTHOR(S)
MISHINA, YURI; DYKES, BERNADINE J.; BLOCK, EMILY S.; POLLOCK, TIMOTHY G.
PUB. DATE
August 2010
SOURCE
Academy of Management Journal;Aug2010, Vol. 53 Issue 4, p701
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
Recent high-profile corporate scandals involving prominent, high-performing firms cast doubt on assertions that the costs of getting caught decrease the likelihood such high performers will act illegally. We explain this paradox by using theories of loss aversion and hubris to examine a sample of S&P 500 manufacturers. Results demonstrate that both performance above internal aspirations and performance above external expectations increase the likelihood of illegal activities. The sample firms' prominence enhanced the effects of performance above expectations on the likelihood of illegal actions. Prominent and less prominent firms displayed different patterns of behavior when their performance failed to meet aspirations.
ACCESSION #
52814578

 

Related Articles

  • Political Skills in Organizations: Do Personality and Reputation Play a Role? Soriano, Domingo Ribeiro // Academy of Management Perspectives;Feb2008, Vol. 22 Issue 1, p66 

    The article discusses the role of politics in organizational management. The author discusses research that suggests executives with political ability have greater influence and receive greater trust and approval from others. He notes a study designed to examine how personality traits such as...

  • Ethical Leadership and Reputation: Combined Indirect Effects on Organizational Deviance. Neves, Pedro; Story, Joana // Journal of Business Ethics;Mar2015, Vol. 127 Issue 1, p165 

    The interest in ethical leadership has grown in the past few years, with an emphasis on the mechanisms through which it affects organizational life. However, research on the boundary conditions that limit and/or enhance its effectiveness is still scarce, especially concerning one of the main...

  • Expectancy Theory Prediction of the Goal Theory Postulate. "The Harder the Goals, the Higher the Performance". Matsui, Tamao; Okada, Akinori; Mizuguchi, Reiji // Journal of Applied Psychology;Feb81, Vol. 66 Issue 1, p54 

    Goal theory postulates that harder goals lead to higher performance than do easier goals. The present study tested the prediction, based on expectancy valence theory, that this would be true only if the payoff for succeeding at the harder goal is sufficiently greater than the alternatives to...

  • Brand Management. Barner, Robert // Leadership Excellence Essentials;Jul2011, Vol. 28 Issue 7, p12 

    The article discusses the four actions that are significant to a leader's effective personal brand management. These actions are reportedly essential in a leader's handling of the reputation that he himself created, which, over time, develop into positive or negative expectations in the minds of...

  • Motivational Determinants of Job Performance. Sheridan, John E.; Slocum Jr., John W.; Min, Brung // Journal of Applied Psychology;Feb75, Vol. 60 Issue 1, p119 

    The expectancy theory model of Vroom was studied in relation to work performance. One hundred thirty-eight incentive workers participated in the study. The data indicated that the total expectancy model is a valid indicator of job performance, although the variances explained by the various...

  • EXPLORING REPUTATION DIFFERENCES IN INFORMATION SYSTEMS GROUPS. Powell, Anne; Yager, Susan E. // Journal of Information Technology Cases & Applications;2004, Vol. 6 Issue 2, p5 

    This article examines the difference in reputation of two Information Systems (IS) groups within the same company. The company is a mid-sized insurance company in a large Midwestern city in the United States, and the two IS groups are from different divisions within the company. The two cases...

  • TO CONDEMN OR NOT TO CONDEMN WHY DISCREDITABLE ACTIONS DON'T ALWAYS DAMAGE REPUTATION. Reuber, Becky; Fischer, Eileen // Rotman Management;Spring2011, p58 

    The article discusses the impact of discreditable actions of an organization on its reputation. It is noted that organization's reputation is composed of individual's attitudes towards it. Also discussed is the model of reputation mentioning the case of Arthur Andersen LLP which reveals that...

  • FALL FROM GRACE. Kennedy, Eugene Cullen // National Catholic Reporter;3/8/2002, Vol. 38 Issue 18, p13 

    Discusses the scandals and cases associated with the Catholic church of Boston. Shift of Catholic priests from Italy to Boston; Decline in people's respect for priests; Allegations against Boston's cardinal Bernard Law; Career background of Law; Changes that took place in the Catholic culture...

  • The Big Picture.  // PRWeek (London);10/1/2013, p7 

    The article reports on the greater emphasis of corporations in 2013 to take good care of their reputation, which comes after it was found that it significantly influences their financial performance.

Share

Read the Article

Courtesy of THE LIBRARY OF VIRGINIA

Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics