DIVERSIFYING ORGANIZATIONAL ACTIVITIES AND CORRUPTION UNDER A SYSTEM OF ETHICS: CASE ANALYSIS

Abstract

 There is a case to be made for organizations adopting ethical norms; it has been shown to be seen as legitimate even when it is symbolic. Institutional isomorphism means that the organization type is the same; it does not necessarily mean that the organizational activities are also homogeneous. In this study, I conduct a comparative analysis of the impact of institutional isomorphism and the diversity of organizational activities using the compliance system.

 The eight companies that were selected vary in size and industry and are isomorphic in terms of their type, but their organizational activities are diverse; these are divided into first-stage activities such as regulations, second-stage activities such as education and training, and third-stage small-group activities conducted at site. Five of the eight companies have brought about changes in their organizational activities in response to past scandals, which are of three types: (1) systems improvement, (2) elimination of misconduct, and (3) company-wide response. However, two of the five companies that had implemented systems development and elimination of misconduct reported yet another incident. The behavior that was reported was not a clear-cut deviation from the norm, and it is highly likely that the individuals involved do not consider their behavior to be deviant or errant.

 While some corrupt practices are clear violations of the norm, there are others that are difficult to categorize as such and fall into a grey area. Hence, there should be diversification of activities within the organization to prevent a range of corrupt practices, which is possible even in an isomorphic system.