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Professor of Entrepreneurship
Corporate Governance; Auditing, Risk Control and Performance
Greve H., Teh D. (2016). Consequences of Organizational Misconduct: Too Much and too Little Punishment. In Organizational Wrongdoing (pp. 370-397). Cambridge University Press.
The revelation of organizational misconduct starts a process of responses that often has negative consequences for the responsible organization, as well as for other organizations in its environment.The authors consider current research on such punishment of misconduct, with a dual focus on examining the research conducted so far and pointing toward new opportunities. Misconduct punishment can be classified according to the theoretical perspective used, the punishment scope examined, choice of organization to punish, and organizational reactions to punishment.These categories of research are interdependent because each theory has specific predictions on scope and choice, and may also differ in the predicted reactions.The evidence so far points clearly toward punishment forms that are less targeted than an economically rational perspective or even the term “punishment” suggests, supporting theoretical perspectives that consider alternative goals and logics of action.