Low self-control, organizational theory, and corporate crime

The development of Gottfredson and Hirschi's general theory of crime (1990; see also Hirschi & Gottfredson: 1987, 2000); has:provoked. lively, debate about the merits of the theory as applied to organizational crime (Steffensmeier 1989; Reed Yeager 1996; Herbert et al. 1998). While the debate is provocative, the empirical evidence brought to bear is an insufficient test of competing theoretical claims. Using data drawn from a factorial survey administered to a group of corporate managers and managers-in-training, we subject Gottfredson and Hirschi's theory of crime and an integrated organizational theory to a theoretical competition. The results show that corporate offending propensity and behavioral indicators of low self-control are unrelated, a result inconsistent with the general theory. Instead, variables consistent with an integrated materialistic and cultural organizational theory predict managers' offending intentions. For instance, offending is inhibited when a firm has a working compliance program and when managers perceive the illegal act as highly immoral. Conversely, managers are more apt to offend when ordered to do so by a supervisor, or to gain financial or market position vis-a-vis competitors. The implications for general and organizational theories of corporate offending are discussed.