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Scandal into Crisis

In: CONVENIENCE ORIENTATION IN CORPORATE CRIME Corrective Recovery Responses for Compliance and Conformance

Author

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  • PETTER GOTTSCHALK

Abstract

Sudden scandals frequently develop into long-lasting crises as discussed in the current case study of corporate crime at Danske Bank in Denmark. This chapter presents the case in terms of both legal compliance violations and social conformance violations where the latter had serious consequences for individuals as well as the organization. Lack of conformance had consequences for Danske Bank top executives and board members who were fired, sued by shareholders, and experiencing cuts in compensation packages. Lack of conformance had serious consequences for the bank as well losing customers and stock values. The crisis recovery strategy of scapegoating was not successful. Scapegoating is an attempt of diverting attention from the organization and transferring responsibility for wrongdoing to a few potentially symbolic figures. By scapegoating, the responsibility for the act or event is transferred from the firm to one or few figures that might be exposed publicly, such as dismissed top executives…

Suggested Citation

  • Petter Gottschalk, 2025. "Scandal into Crisis," World Scientific Book Chapters, in: CONVENIENCE ORIENTATION IN CORPORATE CRIME Corrective Recovery Responses for Compliance and Conformance, chapter 12, pages 251-267, World Scientific Publishing Co. Pte. Ltd..
    • Handle: RePEc:wsi:wschap:9789819805518_0012
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    More about this item

    Keywords

    Corporate Compliance; Corporate Conformance; Convenience Theory; Corporate Scandal; Crisis Management; Destructive Leadership; Recovery Strategy; Recovery Triggers;
    All these keywords.

    JEL classification:

    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

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