Organizing for misconduct: A social network lens on collective corporate corruption

Abstract

Studying corporate misconduct requires understanding how individuals coordinate in illegal activities while maintaining secrecy. Drawing on social network theory and analysis, we develop a systematic framework to explain how social relationships and their structures, as well as individuals’ cognitive perceptions of those structures, affect how individuals engage in collective corporate corruption. We distinguish four levels of analysis—topological, relational, individual, and cognitive—and offer arguments and propositions at each level. Using this framework, we integrate and categorize past research at the intersection of social networks and misconduct. A recurring theme in our analysis is the important role of trust among corrupt organizational members. Finally, we discuss how embracing a network lens to study misconduct can not only address unanswered questions, but also stimulate new areas of research.