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Vortex of Corruption: Longitudinal Analysis of Normative Pressures in Top Global Companies

Author

Listed:
  • Leyla Orudzheva

    (Texas A&M University-Central Texas)

  • Manjula S. Salimath

    (University of North Texas)

  • Robert Pavur

    (University of North Texas)

Abstract

It is widely acknowledged that corruption by any firm is problematic. More importantly, its negative effects are compounded when (a) corruption is present in large firms with global reach and (b) corruption ceases to be a single instance but becomes a reoccurring or perpetuating phenomenon over time. Though the magnification of corruption over both time and size of operations creates scale effects that amplify its detrimental consequences, this context remains largely unexamined empirically. Thus, our research question is: What are the factors that contribute to corruption by large global firms? Drawing on institutional theory, we examine the normative pressures that interact to create a vortex of corporate corruption that persisted over several years. We analyze a 9-year longitudinal dataset of 469 unique FT Global 500 companies representing 31 primary industries and 33 countries with over 3700 company year observations. Results help disentangle a complex interaction of firm-level and headquarters country-level factors that drive corruption and impact performance among top global firms.

Suggested Citation

  • Leyla Orudzheva & Manjula S. Salimath & Robert Pavur, 2020. "Vortex of Corruption: Longitudinal Analysis of Normative Pressures in Top Global Companies," Journal of Business Ethics, Springer, vol. 163(3), pages 529-551, May.
    • Handle: RePEc:kap:jbuset:v:163:y:2020:i:3:d:10.1007_s10551-018-4022-z
    DOI: 10.1007/s10551-018-4022-z
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