rational choice, self-control, organizational strain, and differential association (learned behavior).
The paper also considers various neutralization techniques that could be used by potential
perpetrators in an organizational setting: (1) the government exaggerates dangers to consumers; (2)
regulations/regulators impede free trade; (3) profit is the most important determinant of choice; (4)
caveat emptor (let the buyer beware); and (5) anything for profit. Interestingly, the paper finds that
the only social groups that seemed to have a deterrent effect on unethical acts were friends and
business professors while the perceived support of the board of directors toward less desirable acts
was positively associated with fraudulent choice. These results suggest, among other things, a
strong classroom role for the professoriate in deterrence of fraud.
Exploring a construct similar to the greater good, Jacobsson (2006) finds that fraudsters exploit
moral ambiguity, particularly when the unethical act results in a desirable outcome. The perpetrator
is able to avoid self-criticism by shifting focus to the outcome. In the case of financial reporting
fraud, the executive might claim that the fraud helps to avoid bankruptcy and thus prevents a
company from laying off employees. The transfer of guilt as a barrier to internal conflict may be
explored in financial reporting fraud where the organization seems to benefit while the perpetrator
puts himself in harm’s way. This focus may be a particularly fruitful area of research—especially in
situations where a supervisor may use such rationalizations to enlist the collusive support of lower
level employees.
intervention.