Psychology and white collar crime - compliance recommendations based on the social and psychological reality dictating perception
| Date | 27 September 2022 |
| Pages | 408-415 |
| DOI | https://doi.org/10.1108/JFC-07-2022-0158 |
| Published date | 27 September 2022 |
| Author | Fabian Maximilian Johannes Teichmann,Chiara Wittmann |
Psychology and white collar crime -
compliance recommendations based
on the social and psychological
reality dictating perception
Fabian Maximilian Johannes Teichmann and Chiara Wittmann
Teichmann International (Schweiz) AG, St. Gallen, Switzerland
Abstract
Purpose –To construct effective compliance programmes, the phenomenon of non-compliance and
variations in its abidance must be elucidated. The purpose of this paper is to discuss the social reality of
ethical decision making, whichexamines the internalisation of moral norms and realities of social behaviour
and, therefore,the general non-compliance with everyday laws (Tyler,2006).
Design/methodology/approach –This paper makes use of several social theories, including social
proof theory, traditional social theory and social control theory. Humans are social beings, and decision-
making in ethics is strongly influenced by herding behaviour (Roy, 2021). The behaviour of others and
normativeethical standards inform the compliance ofbehaviour to an undiminishable degree.
Findings –Although there is a host of factors to consider, the success of compliance can largely be
attributed to people’sperception and reception of authority. The perceptionof authority and legitimacy plays
a vital role in appreciating the complexity of rule following. Legitimacy, and its embodiment by persons in
public roles,is a cornerstoneof the subsequent discussion.
Originality/value –This paper uncovers the underlying motivations of non-compliance as well as the
social psychology involvedin the ethics of compliance. Cross-disciplinaryconnections are made between the
private and public sector and practical compliance recommendations. The significant impact of integrity
cultureand value-basedcompliance emerges from the dissection of the social reality.
Keywords White collar crime, Psychology, Non-compliance, Social perception,
Compliance recommendations, Integrity culture
Paper type Conceptual paper
Introduction
Social reality of non-compliance
Humans have a cognitive tendencyto follow the behaviour of others when confronted by an
uncertain situation. Uncertaintyis a metacognition representing a particular kind of explicit
knowledge of what one does not know (Anderson et al.,2019). In a situation of moral
uncertainty, humanslook for the ethical precedent set by others, pushed by their own lack of
knowledge. This is a form of purelyinformational social influence (Roy, 2021). Scholarshave
used this principle to explain the social component of decision-making. Individuals do not
make ethical decision in a vacuum. Social proof theory explainsthat when an individual is
aware of their lack of complete knowledge,they look to the behaviour of others as a guide in
place of their incomplete information(Roy, 2021). The example of others therefore functions
as a social cue and a sourceof information, to a certain degree.
A significant amount of ink has been spilled refining what it means to consider ethics
“social”; all ethics are social, a branch of social ethics asserts, because they are socially
constituted and necessarily embedded in a social matrix (Welch, 2012). Ethical decisions
JFC
31,2
408
Journalof Financial Crime
Vol.31 No. 2, 2024
pp. 408-415
© Emerald Publishing Limited
1359-0790
DOI 10.1108/JFC-07-2022-0158
The current issue and full text archive of this journal is available on Emerald Insight at:
https://www.emerald.com/insight/1359-0790.htm
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