Skip to main content
×
×
Home

A Responsive Approach to Organizational Misconduct: Rehabilitation, Reintegration, and the Reduction of Reoffense

  • Stephanie Bertels (a1), Michael Cody (a2) and Simon Pek (a1)
Abstract:

In this article, we examine how regulators, prosecutors, and courts might support and encourage the efforts of organizations to not only reintegrate after misconduct but also to improve their conduct in a way that reduces their likelihood of re-offense (rehabilitation). We explore a novel experiment in creative sentencing in Alberta Canada that aimed to try to change the behaviour of an industry by publicly airing the root causes of a failure of one the industry’s leaders. Drawing on this case and prior work, we articulate a model for a responsive and restorative approach to organizational misconduct that balances the punitive role of regulators and courts with new roles in supporting and overseeing rehabilitation.

Copyright
References
Hide All
Aquino, K., Tripp, T.M., & Bies, R.J. 2006. Getting even or moving on? Power, procedural justice, and types of offense as predictors of revenge, forgiveness, reconciliation, and avoidance in organizations. Journal of Applied Psychology, 91(3): 653–68. http://dx.doi.org/10.1037/0021-9010.91.3.653
Ayres, I., & Braithwaite, J. 1991. Tripartism: Regulatory capture and empowerment. Law & Social Inquiry, 16(3): 435–96. http://dx.doi.org/10.1111/j.1747-4469.1991.tb00291.x
Ayres, I., & Braithwaite, J. 1992. Responsive regulation: Transcending the deregulation debate. New York: Oxford University Press.
Baxter, L.G. 2011. Capture in financial regulation: Can we channel it toward the common good. Cornell Journal of Law and Public Policy, 21: 175200.
Baxter, L.G. 2012. Understanding regulatory capture: An academic perspective from the United States. In Pagliari, S. (Ed.), The making of good financial regulation: Towards a policy response to regulatory capture: 5369. Guildford: Guildford House Publishing Ltd.
BBC. 2012. UBS in $1.5bn Libor rigging fine (December 19). http://www.bbc.co.uk/news/business-0767984, accessed September 19, 2013.
Blackden, R.. 2012. US fines Glaxo record $3bn for mis-promoting drugs. The Telegraph (July 2). http://www.telegraph.co.uk/finance/newsbysector/pharmaceuticalsandchemicals/9371404/US-fines-Glaxo-record-3bn-for-mis-promoting-drugs.html, accessed September 19, 2013.
Braithwaite, J. 1999. A future where punishment is marginalized: Realistic or utopian? UCLA Law Review, 46: 1727–43.
Braithwaite, J. 2002. Restorative justice & responsive regulation. Oxford: Oxford University Press.
Braithwaite, J. 2003. Restorative justice and corporate regulation. In Braithwaite, E.G.M. & Kerner, H.-J. (Eds.), Restorative justice in context: International practice and directions Devon, UK: Willan Publishing.
Braithwaite, J. 2011. The essence of responsive regulation. University of British Columbia Law Review, 44(3): 475520.
Charmaz, K. 2006. Constructing grounded theory: A practical guide through qualitative analysis Thousand Oaks, CA: Sage Publications Inc.
Dirks, K.T., Lewicki, R.J., & Zaheer, A. 2009. Repairing relationships within and between organizations: Building a conceptual foundation. Academy of Management Review, 34(1): 6884. http://dx.doi.org/10.5465/AMR.2009.35713285
Economist. 2012. Free exchange: Fine and punishment (July 21). http://www.economist.com/node/21559315, accessed September 13, 2013.
Glaser, B.G. 1978. Theoretical sensitivity: Advances in the methodology of grounded theory. Mill Valley, CA: Sociology Press.
Glaser, B.G. 1998. Doing grounded theory: Issues and discussions. Mill Valley, CA: Sociology Press.
Glaser, B.G. 2005. The grounded theory perspective III: Theoretical coding. Mill Valley, CA: Sociology Press.
Glaser, B.G., & Strauss, A.L. 1967. The discovery of grounded theory: Strategies for qualitative research. Chicago: Aldine Publishing Company.
Goodstein, J., & Butterfield, K.D. 2009. Extending the horizon of business ethics: Restorative justice and the aftermath of unethical behavior. Business Ethics Quarterly, 20(3): 453–80. http://dx.doi.org/10.5840/beq201020330
Goulding, C. 2002. Grounded theory: A practical guide for management, business and market research. Thousand Oaks, CA: Sage Publications Inc.
Greve, H.R., Palmer, D., & Pozner, J.-E. 2010. Organizations gone wild: The causes, processes, and consequences of organizational misconduct. Academy of Management Annals, 4(1): 53107. http://dx.doi.org/10.1080/19416521003654186
Gunningham, N., Grabosky, P., & Sinclair, D. 1998. Smart regulation: Designing environmental policy. Oxford: Oxford University Press.
Hess, D., & Ford, C.L. 2008. Corporate corruption and reform undertakings: A new approach to an old problem. Cornell International Law Journal, 41: 307–46.
Holton, J.A. 2007. The coding process and its challenges. In Bryant, A. & Charmaz, K. (Eds.), The Sage handbook of grounded theory. 265–89. Thousand Oaks, CA: Sage Publications Inc.
Hughes, E.L., & Reynolds, L.A. 2009. Creative sentencing and environmental protection. Journal of Environmental Law and Practice, 19(2): 105–37.
Livermore, M.A., & Revesz, R.L. 2012. Regulatory review, capture, and agency inaction. Georgetown Law Journal, 101: 13371427.
Locke, K. 2001. Grounded theory in management research. Thousand Oaks, CA: Sage Publications Inc.
Makkai, T., & Braithwaite, J. 1994. Reintegrative shaming and compliance with regulatory standards. Criminology, 32(3): 361–85. http://dx.doi.org/10.1111/j.1745-9125.1994.tb01158.x
McRory, S., & Jenkins, L. 2003a. Creative sentencing part 1: Overview. Environmental Law Centre—News Brief, 18(2).http://www.elc.ab.ca/pages/Publications/Previous Issue.aspx?id=545
McRory, S., & Jenkins, L. 2003b. Creative sentencing part II: Outcome of workshop. Environmental Law Centre—News Brief, 18(3).http://www.elc.ab.ca/pages/Publications/Previous Issue.aspx?id=552
Mills, R.W. 2010. The promise of collaborative partnerships: Lessons from the Federal Aviation Administration. IBM Center for the Business of Government.
MSN Money. 2013. Barclays fined for US price fixing (July 14). http://money.uk.msn.com/news/barclays-fined-for-us-price-fixing, accessed September 13, 2013.
Nehme, M. 2005. Enforceable undertakings in Australia and beyond. Australian Journal of Corporate Law, 18: 6687.
Nehme, M. 2007. Enforceable undertakings: A new form of settlement to resolve alleged breaches of the law. University of Western Sydney Law Review, 11: 104–23.
Nehme, M. 2009. Monitoring compliance with enforceable undertakings. Australian Journal of Corporate Law, 23: 76102.
Nehme, M. 2010. Enforceable undertaking: A restorative sanction. Monash University Law Review, 36(2): 108–35.
Parker, C. 2002. The open corporation: Effective self-regulation and democracy. Cambridge: Cambridge University Press.
Parker, C. 2004. Restorative justice in business regulation? The Australian Competition and Consumer Commission’s use of enforceable undertakings. The Modern Law Review, 67(2): 209–46. http://dx.doi.org/10.1111/j.1468-2230.2004.00484.x
Parker, C. 2009. Negotiating enforcement and sanctioning in regulatory capitalism: The need for problem-solving courts. http://papers.ssrn.com/abstract=1527317, accessed September 13, 2013.
Parker, C., & Nielsen, V.L. 2011. Deterrence and the impact of calculative thinking on business compliance with competition and consumer regulation. Antitrust Bulletin, 56(2).377426.
Parker, C. 1984. Normal accidents: Living with high risk technologies. Princeton, NJ: Basic Books.
Pfarrer, M.D., Decelles, K.A., Smith, K.G., & Taylor, M.S. 2011. After the fall: Reintegrating the corrupt organization. Academy of Management Review, 33(3): 730–49. http://dx.doi.org/10.5465/AMR.2008.32465757
Powell, B.H. 2001. Let’s be a little more creative: Creative sentencing in Alberta. Environmental Law Centre News Brief, 16(2): 15.
Radzik, L. 2009. Making amends: Atonement in morality, law, and politics. New York: Oxford University Press. http://dx.doi.org/10.1093/acprof:oso/9780195373660.001.0001
Reed, K.K. 2009. A look at firm-regulator exchanges: Friendly enough or too friendly? Business & Society, 48(2): 147–78. http://dx.doi.org/10.1177/0007650308316525
Reiss, D.R. 2012. The benefits of capture. Wake Forest Law Review, 47(3): 569610.
Rhee, M., & Valdez, M.E. 2009. Contextual factors surrounding reputation damage with potential implications for reputation repair. Academy of Management Review, 34(1): 146–68. http://dx.doi.org/10.5465/AMR.2009.35713324
Richards, L. 2005. Handling qualitative data: A practical guide. Thousand Oaks, CA: Sage Publications Inc.
Schwarcz, D. 2013. Preventing capture through consumer empowerment programs: Some evidence from insurance regulation. In Carpenter, D. & Moss, D. (Eds.), Preventing regulatory capture: Special interest influence and how to limit it: 365–96. New York: Cambridge University Press. http://dx.doi.org/10.1017/CBO9781139565875.019
Siggelkow, N. 2007. Persuasion with case studies. Academy of Management Journal, 50(1): 20–24. http://dx.doi.org/10.5465/AMJ.2007.24160882
Skeel, D.A. 2001. Shaming in corporate law. University of Pennsylvania Law Review, 149(6): 1811–68. http://dx.doi.org/10.2307/3312899
Stigler, G.J. 1971. The theory of economic regulation. The Bell Journal of Economics and Management Science, 2(1): 321. http://dx.doi.org/10.2307/3003160
Thaw, D. 2014. Enlightened regulatory capture. Washington Law Review, 89(2): 329–77.
Vaughan, D. 1983. Controlling unlawful organizational behavior: Social structure and corporate misconduct. Chicago: University of Chicago Press.
Vaughan, D. 1990. Autonomy, interdependence, and social control: NASA and the space shuttle Challenger. Administrative Science Quarterly, 35(2): 225–57. http://dx.doi.org/10.2307/2393390
Vaughan, D. 1997. The trickle-down effect: Policy decisions, risky work, and the Challenger tragedy. California Management Review, 39: 80102. http://dx.doi.org/10.2307/41165888
Vaughan, D. 1999. The dark side of organizations: Mistake, misconduct, and disaster. Annual Review of Sociology, 25: 271305. http://dx.doi.org/10.1146/annurev.soc.25.L271
Vincent, M. 2013. Corporate fines carry no fear for miscreants. Financial Times (April 5). http://www.ft.com/intl/cms/s/0/2ce470e8-9e13-11e2-9ccc-00144feabdc0.html, accessed September 13, 2013.
Walker, M.U. 2006. Moral repair: Reconstructing moral relations after wrongdoing. New York: Cambridge University Press. http://dx.doi.org/10.1017/CBO9780511618024
Waters, R. 2012. GlaxoSmithKline’s $3 billion hit: Deterrent or business expense? Forbes (July 12). New York: Cambridge University Press. http://www.forbes.com/sites/robwaters/2012/07/12/glaxosmithklines-3-billion-hit-deterrent-or-business-expense/, accessed September 13, 2013.
Wright, J.S.F., & Head, B. 2009. Reconsidering regulation and governance theory: A learning approach. Law & Policy, 31(2): 192216. http://dx.doi.org/10.1111/j.1467-9930.2009.00301.x
Recommend this journal

Email your librarian or administrator to recommend adding this journal to your organisation's collection.

Business Ethics Quarterly
  • ISSN: 1052-150X
  • EISSN: 2153-3326
  • URL: /core/journals/business-ethics-quarterly
Please enter your name
Please enter a valid email address
Who would you like to send this to? *
×

Keywords

Metrics

Full text views

Total number of HTML views: 0
Total number of PDF views: 159 *
Loading metrics...

Abstract views

Total abstract views: 489 *
Loading metrics...

* Views captured on Cambridge Core between September 2016 - 16th August 2018. This data will be updated every 24 hours.