The Dangers of Decoupling: The Relationship between Compliance Programs, Legitimacy Perceptions, and Institutionalized Misconduct
Tammy L. MacLean
Suffolk University - Department of Management
Academy of Management Journal, Vol. 53, No. 6, pp. 1499-1520, 2010
This theory-building analysis spotlights a dynamic that occurs between decoupling, legitimacy, and institutionalized misconduct. Using data gathered from a case study of widespread deceptive sales practices at a large financial services firm, we demonstrate the dangers of decoupling an organizational compliance program from the core business activities of an organization. We illustrate how decoupling created a “legitimacy facade” that enabled the institutionalization of misconduct and precipitated a loss of external legitimacy.
Number of Pages in PDF File: 23
Date posted: March 10, 2012 ; Last revised: March 17, 2012