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Book part
Publication date: 24 July 2023

Timo Fiorito, Richard Hoff and Michel Ehrenhard

An emerging stream of research has identified critical events as spikes in societal interest that increase public attention to firm behavior and can function as exogenous triggers…

Abstract

An emerging stream of research has identified critical events as spikes in societal interest that increase public attention to firm behavior and can function as exogenous triggers for change. With respect to misconduct, firms vary considerably in how they respond to critical events, and for a visible change in their undesirable behavior to transpire, there needs to be ongoing accumulation of work by social-control agents. While social-control agents are often boundedly rational in their decision-making, most studies have overlooked the ability of critical events to restrict or redirect collective attention among such agents. Drawing on the case of a regulatory agency’s enforcement actions against violations of anti-money laundering regulations by three European banks, we investigate the influence of critical events on social-control agents’ enforcement behavior. This study achieves two goals: first, we identify three types of fieldwide critical events that influence social-control agents’ behavior, and second, we demonstrate that these events may shape the regulatory environment in which firms operate, thus allowing for different organizational responses to enforcement actions. Our findings contribute to the literature on critical events and organizational misconduct.

Details

Organizational Wrongdoing as the “Foundational” Grand Challenge: Definitions and Antecedents
Type: Book
ISBN: 978-1-83753-279-7

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Book part
Publication date: 24 July 2023

Abstract

Details

Organizational Wrongdoing as the “Foundational” Grand Challenge: Definitions and Antecedents
Type: Book
ISBN: 978-1-83753-279-7

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