CULTURE AND CORPORATE SCANDALS

Corporate scandals (e.g., fraud) are often blamed on the behaviour of rogue employees, yet organisational culture creates the environment in which misconduct can occur. We developed this idea through an AI-based investigation of organisational culture in over 200 companies, and investigated whether companies that develop a strong ‘target pressure culture’ are more likely to experience corporate scandals due to them making poor conduct permissible or necessary.