Ilieva, M. (2024) The Olympus scandal – the dark side of social networks and corporate culture. Critical Perspectives on International Business, 20 (4). pp. 409-442. ISSN 1742-2043
Abstract
Purpose
This study aims to build on the well-documented case of the Olympus scandal to dissect how social networks and corporate culture enabled corporate elites to commit fraud across multiple generations of leaders.
Design/methodology/approach
A flexible pattern matching approach was used to identify matches and mismatches between behavioural theory in corporate governance and the patterns observed in data from diverse sources.
Findings
The study applies the behavioural theory of corporate governance from different perspectives. Social networks and relationships were essential for the execution of the fraud and keeping it secret. The group of corporate elites actively created opportunities for committing misappropriation. This research presents individuals committing embezzlement because the opportunity already exists, and they can enrich themselves. The group of insiders who committed the fraud elaborated the rationalizations to others and asked outside associates to help rationalise the activities, while usually individuals provide rationalizations to themselves only.
Practical implications
The social processes among actors described in this case can inform the design of mechanisms to detect these behaviours in similar contexts.
Originality/value
This study provides both perspectives on the fraud scandal: the one of the whistle-blowers, and the opposing side of the transgressors and their associates. The extant case studies on Olympus presented the timeframe of the scandal right after the exposure. The current study dissects the events during the fraud execution and presents the case in a neutral or a negative light.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2024, Emerald Publishing Limited. This author accepted manuscript is provided for your own personal use only. It may not be used for resale, reprinting, systematic distribution, emailing, or for any other commercial purpose without the permission of the publisher. |
Keywords: | social networks, corporate culture, behavioural theory of corporate governance, flexible pattern matching, Olympus case |
Dates: |
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Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Business (Leeds) |
Depositing User: | Symplectic Publications |
Date Deposited: | 07 Mar 2024 14:08 |
Last Modified: | 21 Aug 2024 13:35 |
Status: | Published |
Publisher: | Emerald |
Identification Number: | 10.1108/cpoib-09-2020-0126 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:209982 |