DeCelles and Pfarrer (2004) development of a multidimensional model that examines the role that stakeholder pressures, environmental factors, charismatic leaders, and their followers play in corporate corruption. To illustrate the effect of conflicting stakeholder interests on an organization, DeCelles and Pfarrer (2004) put forth the following example. In order to address the increasing demands of stakeholders to improve ethical standards, an organization might be compelled to implement ethical training programs. While these trainings may prove beneficial, they also result in an additional cost for the company. This extra cost sends a signal to other stakeholders, specifically investors, that the company’s profits might be impacted. As a result, conflicting stakeholder demand may propel firms to resort to corrupt practices in an effort to pacify stakeholders, as stakeholder’s approval is key to a company’s continuity (p. 72).
According to DeCelles and Pfarrer (2004), the dynamism of the environment that a company competes in places pressure on said company to obtain resources, which might cause the company to participate in corrupt behavior. Many of the internet companies that entered the marketplace in the 1990s failed because there was no model for these new entrants to follow. As a result, these companies made uncertain choices that had unclear outcomes. Most of …show more content…
Heymann (2010) concludes that the alignment of these two approaches will result in a win-win situation for all parties involved. As a result, the government’s objective to unravelling and prosecuting fraud will be achieved. Additionally, employees’ interest in job security, counsel, and avoiding prosecution will be taken into consideration, thus protecting the corporation’s reputation and its interest in avoiding indictment (p.
According to DeCelles and Pfarrer (2004), the dynamism of the environment that a company competes in places pressure on said company to obtain resources, which might cause the company to participate in corrupt behavior. Many of the internet companies that entered the marketplace in the 1990s failed because there was no model for these new entrants to follow. As a result, these companies made uncertain choices that had unclear outcomes. Most of …show more content…
Heymann (2010) concludes that the alignment of these two approaches will result in a win-win situation for all parties involved. As a result, the government’s objective to unravelling and prosecuting fraud will be achieved. Additionally, employees’ interest in job security, counsel, and avoiding prosecution will be taken into consideration, thus protecting the corporation’s reputation and its interest in avoiding indictment (p.