A Gadamerian perspective on financial crimes. An issue of historically-rooted prejudices and narrative strategies
| Pages | 836-860 |
| Date | 02 July 2019 |
| Published date | 02 July 2019 |
| DOI | https://doi.org/10.1108/JFC-11-2018-0119 |
| Author | Michel Dion |
| Subject Matter | Financial risk/company failure,Financial crime |
A Gadamerian perspective
on financial crimes
An issue of historically-rooted prejudices
and narrative strategies
Michel Dion
Faculté d'administration, Universite de Sherbrooke, Sherbrooke, Canada
Abstract
Purpose –The purpose of this paper is to see to what extent Hans-Georg Gadamer’s hermeneutic
philosophy could be used to unveil how corporate discourse about financial crimes (in codes of ethics) is
closely linkedto the process of understanding.
Design/methodology/approach –Corporate ethical discourse of 20 business corporations will be
analyzed, as it is conveyed within their codes of ethics. The companies came from five countries (USA,
Canada, France, Switzerlandand Brazil). In the explanatory study, the following industries were represented
(two companies by industry): aircrafts/trains, military, airlines, recreational vehicles, soft drinks, cigarettes,
pharmaceuticals,beauty products, telecommunicationsand banks.
Findings –Historically-based prejudices in three basic narrative strategies (silence, chosen items and
detailed discussion) about financialcrimes are related to the mindset, to the basic outlook on corporate self-
interestor to an absolutizingattitude.
Research limitations/implications –The historically-based prejudices that have been identified in
this explanatorystudy should be analyzed in longitudinal studies.
Practical implications –The historically-basedprejudices that have been identified in this explanatory
study should be analyzed in longitudinalstudies. Historically-based prejudices couldbe strengthened by the
way corporate codes of ethics deal with financial crimes. They could, thus, have a deep impact on the
organizationalculture in the long-run.
Originality/value –The paper analyzesthe way corporate codes of ethics use given narrativestrategies to
address financialcrimes issues. It also unveils historically-based prejudicesthat follow from the choice of one
or the other narrativestrategy.
Keywords Financial crimes, Corporate codes of ethics, Corporate ethical discourse,
Hans-Georg Gadamer, Prejudices
Paper type Conceptual paper
Introduction
Financial crimes are very often described in a way that excludes our historically-rooted
prejudices. Indeed, corporate codes of ethics seem to be written as if such prejudices could
have never existed. In their survey (N=246), Gordon and Miyake (2001) analyzed corporate
codes of ethics fromenterprises and sector-based associations in24 OECD countries. Most of
the codes were prohibiting the promise to give bribes. Half of the codes actually prohibited
soliciting bribes. A higher proportionprohibited any offer of bribes. So, a significant number
of business corporations did not prohibit either soliciting or offering bribes. Some people
could argue that financial crimes should always be described within corporate codes of
ethics to avoid any amoral mindset. Otherscould argue that ethics is not equivalent to laws:
laws and regulations define financialcrimes and their scope of application. It would then not
be a relevant issue for corporate codes of ethics. However, if there is not an alternative
JFC
26,3
836
Journalof Financial Crime
Vol.26 No. 3, 2019
pp. 836-860
© Emerald Publishing Limited
1359-0790
DOI 10.1108/JFC-11-2018-0119
The current issue and full text archive of this journal is available on Emerald Insight at:
www.emeraldinsight.com/1359-0790.htm
corporate document for prohibiting financial crimes, does it mean that the company is an
amorally-thinkingorganization? The prejudice of amoral way of thought could be explained
in both sides of the issue. The prejudice of amoral business decision-makers has arisen in
societies, which attribute greater levelsof ethical responsibility to corporations, as they are
the dominant social actors(Dubbink and Smith, 2011).
In this paper, Hans-Georg Gadamer’s hermeneutic philosophy will be used to explain
how corporate ethical discourse about financial crimes is closely linked to the process of
understanding. Corporate ethicaldiscourse of 20 business corporations will be analyzed, as
it is conveyed within their corporatecodes of ethics (that have been published between 2011
and 2018). The companies came from five countries, namely, USA (nine), Canada (five),
France (three), Switzerland (one) and Brazil (one). In our explanatory study, the following
industries were represented (twocompanies by industry): aircrafts/trains, military, airlines,
recreational vehicles, soft drinks, cigarettes, pharmaceuticals, beauty products,
telecommunications and banks. Most of the time, the following financial crimes were
described within corporate codes of ethics: corruption (including bribery), fraud, insider
trading, antitrust and money laundering. Is corporate ethical discourse about financial
crimes written in such a way that it could provoke prejudices against the organization?
What could be the main narrative strategiesthat are underlying corporate ethical discourse?
The paper focusses on three basic topics, namely, unveiling historically-based prejudices,
preventing wrongdoing and using narrative strategies; the narrative strategies and the
challenge of interpretation (narrative strategies of silence, chosen items and detailed
discussion and their philosophical interpretation); the challenge of understanding financial
crimes.
Financial crimes and corporate codes of ethics: unveiling historically-based
prejudices, preventing wrongdoing and using narrative strategies
Corporate codes of ethics deal with various topics including some financial crimes (fraud,
corruption, insider trading,antitrust and money laundering). The way such financial crimes
are addressed in corporate codes of ethics could unveil historically-based prejudices about
financial crimes and criminals. The basic aim of corporate codes of ethics is to prevent
wrongdoing, that is, unintended organizational behaviours. Corporate codes of ethics are
using given narrative strategies when addressing such unintended behaviours. Whether or
not authors of such codes had consciously chosen givennarrative strategies is not an issue.
What is decisive is the presence of narrative strategies in the text itself, insofar as such
strategies are expressing the way the company deals with what-has-to-be-said and the
remaining unsaid.
Gadamer’s perspective on prejudices
Our being is more determined by our prejudices (whether they are justified or not) than by
our judgments (Gadamer, 1970). According to Gadamer (2008), Francis Bacon (1561-1626)
was one of the first philosophers who had unveiled the prejudices of language as obstacles
to a true knowledge (Bacon, 1883). Our life experiences are possible because we have
prejudices about things, persons and events –prejudiceswhose validity has to be assessed.
As Prasad (2002) said, we become aware of our prejudices because the meaning of the text
(or the meaning of a phenomenon) is challenging the truthfulness of our prejudices.
Gadamer (1976) believed that the negativedimension of prejudices has been inherited from
the Aufklärung. A prejudicemeans a judgment that is taken before we have deeply analyzed
and checked all aspects of the object (whether it is a thing, person, animal or event): it is a
“pre-judgment”. It does not follow that prejudices should always be negatively perceived.
A Gadamerian
perspective
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