Why Firms Engage in Corruption: A Top Management Perspective
Posted: 30 Dec 2008
Date Written: December 30, 2008
This study builds upon the top management literature to predict and test antecedents to firms' engagement in corruption. Building on a survey of 341 executives in India, we find that if executives have social ties with government officials, their firms are more likely to engage in corruption. Further, these executives are likely to rationalize engaging in corruption as a necessity for being competitive. The results collectively illustrate the role that executives' social ties and perceptions have in shaping illegal actions of their respective firms.
Keywords: corruption, social ties, rationalization, India
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