Corporate crime and the dysfunction of value networks
| Pages | 436-445 |
| Date | 09 October 2009 |
| DOI | https://doi.org/10.1108/13590790910993726 |
| Published date | 09 October 2009 |
| Author | Michel Dion |
| Subject Matter | Accounting & finance |
Corporate crime and the
dysfunction of value networks
Michel Dion
De
´partement de Management, Faculte
´d’administration,
Universite
´de Sherbrooke, Sherbrooke, Canada
Abstract
Purpose – The concept of “value network” makes clear that the mission of business corporations
cannot be isolated from three basic elements: making profits, responding to customers’ needs, reacting to
competitors. Too often, value networks are seen as neutral factors in the way corporate crimes
are committed. Value networks are usually considered as morally neutralconditioning factors, while it is
not the case. The purpose of this paper is to explain how value networks should be closely linked to any
crime prevention system.
Design/methodology/approach – Christensen’s notion of value networks will be used in order to see
if corporate crimes constitute a dysfunction of value networks. The most important “traditional”
antecedents of corporate crime will be analyzed.
Findings – Both financial performance and growth rate are reflecting a deep concern for profitability.
The level of market concentration not only reveals the structure of the market itself but also the way
competitors react one to each other (particularly, through mergers and acquisitions). In both cases, what
is unveiled is the capacity of value networks to enhance ethical as well as unethical practices. The way
competitors react one to another, as component of the industry concentration, actually reveals how value
networks are morally unsettled when such reaction could influence organizations to commit corporate
crimes.
Originality/value – The originality of this paper is to reveal how changing corporate culture could
redefine the moral boundaries of value networks within the organization.
Keywords Crimes, Corporatestrategy, Organizational culture
Paper type Conceptual paper
Introduction
According to Chirayath et al. (2002), changes in the globalized markets tend to create an
increasing “oligopolization” that could provide more opportunities for corporate
deviance. Very often, organizational culture makes possible to adopt organizational
purposes or objectives which are basically deviant in comparison with social norms.
Such deviant purposes can be chosen when business corporations are trapped within
doubtful, immoral or disloyal means that are used by competitors. They could also be
trapped by the business milieu as a social institution. They could finally be trapped by
their own sector-based morality which is oriented towards profit maximization, without
any convergence with their own organizational parameters for profits growth.
Globalization is indirectly making business corporations more deviant and reluc tant to
any external control, both because of the increasing oligopolization and because
enterprises are searching for more freedom (less legal or cultural constraints) in their
international operations (particularly in Asia and Africa).
Christensen (1997) defined the “value network” as “the context within which a firm
identifies and responds to customers’ needs, solves problems, procures input, reacts to
competitors, and strives for profit.” Such definition of value networks makes po ssible
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/1359-0790.htm
JFC
16,4
436
Journal of Financial Crime
Vol. 16 No. 4, 2009
pp. 436-445
qEmerald Group Publishing Limited
1359-0790
DOI 10.1108/13590790910993726
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