The corrective actions organizations pursue following misconduct: A review and research Agenda

Matt C. Hersel, Catherine A. Helmuth, Michelle L. Zorn, Christine Shropshire, Jason W. Ridge

Research output: Contribution to journalArticlepeer-review

2 Scopus citations

Abstract

Organizational misconduct has substantial effects on the well-being of a firm and its stakeholders. As this body of work has grown, organizational scholars have devoted considerable research attention toward understanding how firms can minimize the negative effects of misconduct through various corrective actions. Consequently, discrete research streams have formed around specific types of organizational misconduct and corrective actions, which has left the literature without a unifying theoretical model. We provide a conceptual synthesis and typology that aggregates disconnected concepts into the higher order constructs of organizational misconduct (executive dismissal, product recalls, organizational accounts, and policy changes) and corrective actions (fraud, product safety issues, employee mistreatment, and environmental vio-lations). Using the theoretical tenets of stakeholder salience and managerial cognition, we offer insight and future research directions about managers’ decision-making processes following misconduct and why firms respond using accommodative versus defensive strategies.

Original languageEnglish (US)
Pages (from-to)547-585
Number of pages39
JournalAcademy of Management Annals
Volume13
Issue number2
DOIs
StatePublished - Jul 2019

ASJC Scopus subject areas

  • Business and International Management
  • Organizational Behavior and Human Resource Management

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