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The dynamics of corruptogenic organizations
1Past President of AGPA, former president of the Eastern Group Psychotherapy Society, and in the private practice of psychotherapy and organizationalconsultation in New York City. He also teaches in the MPH program at the Mount Sinai School of Medicine. This article is based on a presentation made at the 2008 annual meeting of AGPA in Washington, D.C.
International Journal of Group Psychotherapy
|September 5, 2014
Summary
Organizational dynamics can foster corruptogenic environments, leading to corporate scandals beyond mere greed. Identifying these internal factors is crucial for preventing firm destruction and economic damage.
Area of Science:
- Organizational Psychology
- Business Ethics
- Sociology of Organizations
Background:
- Corporate scandals often overlook the role of internal organizational dynamics.
- Understanding the factors that create a breeding ground for unethical behavior is essential.
Purpose of the Study:
- To identify corruptogenic factors within organizations.
- To explore how organizational culture and subgroups contribute to unethical or illegal behavior.
- To provide strategies for preventing organizational corruption.
Main Methods:
- Analysis of organizational dynamics using a large group framework.
- Case studies of identified corruptogenic organizations (e.g., Enron, Madoff).
Main Results:
- Corruptogenic organizational cultures and subgroups can drive self-destructive behavior and harm stakeholders.
- Founders and leadership cores can intentionally or unintentionally create environments conducive to corruption.
- Outcomes of corruption extend beyond financial greed to include community-wide trauma.
Conclusions:
- Recognizing and addressing corruptogenic organizational dynamics is vital for corporate governance.
- Consultants and policymakers can implement structures to detect and counteract hidden corruption.
- Proactive measures are necessary to prevent organizational self-destruction and economic damage.
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