Organizational cronyism refers to favoring some employees within an organization based on non-performance-related factors. Although it is highly likely to encounter many attitudes and behaviors meeting this description within public and private institutions, there are limited studies on this issue. Thus, the purpose of this study is to develop a valid and reliable scale to assess the perception of cronyism among organizational members. To this end, an item pool was formed based on current literature as well the views (...) of teachers and expert recommendations. The validity–reliability of the scale was tested via two sample groups. As a result of the study, a scale with 3 dimensions and 15 items as well as psychometric qualities was developed to assess employee perceptions of cronyism. The scale dimensions comprise: in-group bias, paternal cronyism, and reciprocal exchange of favor in accordance with the way the method was addressed in the literature. The analyses of nomological validity of the scale showed that perception of cronyism is an important predictor of trust in managers. (shrink)

This study examines determinants of chairman compensation in a supervisory board setting and, specifically, the relationship between chairman and CEO compensation. Using a sample of publicly listed firms in Sweden, the study indicates that chairman compensation—despite its fixed nature—is reflective of firm performance via a positive relationship to CEO compensation. As CEO compensation is set before chairman compensation, we argue that the chairman may be inclined to conspire with the CEO in earnings management efforts at the expense of monitoring on (...) behalf of investors. Supporting our cronyism argument, we find evidence that the gap between chairman and CEO compensation is less at firms where the chairman had previously served in the executive management team. The close ties between the chairman and CEO compensation add to the understanding of the relative success of the managerial power theory versus the agency theory in explaining CEO compensation. (shrink)

In this paper we discuss cronyism that exists between superiors and subordinates. Cronyism is defined as favoritism shown by the superior to his or her subordinate based on their relationship, rather than the latter's capability or qualification, in exchange for the latter's personal loyalty. We argue that two cultural antecedents, namely particularism and paternalism, give rise to strong ingroup bias and unreserved personal loyalty, which in turn lead to cronyism. We examine the consequences of cronyism at (...) the individual level with respect to job satisfaction, organizational commitment, and ingratiation. We also discuss how cronyism affects performance, morale, and inertia at the organizational level. Cronyism can be observed in all cultures; however, its manifestation is likely to vary from one culture to another. (shrink)

The current research examines the possible outcomes of cronyism like organizational deviance, organizational cynicism, and counterproductive work behavior and also investigates the mediating variable violation of psychological contract among cronyism and its possible outcomes. Many studies have investigated the presence of organizational cronyism at the workplace and its impacts on certain variables. However, the outcomes observed in this study, i.e., OD, OCy, and counter-productive work behavior were not empirically investigated previously as per researchers’ knowledge. The second gap (...) this study fills is the mediating effect of VPC between the studied variables. Thirdly, the study was conducted in Azad Jammu and Kashmir, Pakistan, which is almost the first attempt to investigate this phenomenon in Azad Jammu and Kashmir. Data were collected from the employees working under different ministries of Azad Jammu and Kashmir, Pakistan like education, forest, sports, information, local government, finance, and tourism. The data from 350 employees were collected through convenience sampling. The data collection process was conducted at two distinct time lags. Results show that OC significantly and positively relates with OD, OCy, and counter-productive work behavior, whereas VPC mediates the relationship among OC and OD, OC, and counter-productive work behavior. Employees enjoying special favors from the leadership seem to be more dedicated toward the organization than the employees who do not have this favor, and the ultimate result is negative for the organization. (shrink)

Autocracies draw their political power from cronyism and organized repression. The opacity of business information protects these regimes and their crony firms from any opposition. However, autocracies might also desire to eliminate cronyism because it dampens economic growth. Autocracies survive through repression that engenders tensions, as evident in the Spanish newspaper industry during the Francoist dictatorship. State control over this industry was important because the press disseminated news to the public. From 1939 to 1957, the autocracy institutionalized both (...) cronyism and the opacity of circulation figures to sustain the political powers of Franco and the single party state. Opacity concealed the economic performance of newspapers owned by sole legal party and any distribution of resources in its favor. Franco authorized voluntary disclosure of reliable circulation figures in 1964, after eliminating cronyism in favor of a freer market. Repression guaranteed support for this industry until Franco's death. (shrink)

Focusing on the virtue-ethics tradition, this article analyzes the practice of networking within the business context. First, it distinguishes three types of networking: utilitarian, emotional, and virtuous. Virtuous networking does not exclude utilitarian and emotional networking, but these latter forms should be practiced with reciprocity. It is argued that virtuous networking requires (1) acting with good faith, sharing honest goals, and participating in licit activities; (2) sharing information, knowledge, and resources with reciprocity and even with gratuity; (3) serving with justice (...) in asymmetrical power relationships; and (4) exercising a positive ethical influence within the network. Specific forms of unethical behavior in the practice of networking include (1) bad faith or abuse of trust, (2) opportunism, (3) abuse and misuse of power, (4) network cronyism, (5) networking as disguised bribery, and (6) cooperating in the wrongdoing of other actors of the network. The article concludes with some remarks about the role of ethics in social networks. (shrink)

AbstractBoardroom backscratching, or cronyism, is an unethical practice where CEOs conspire with directors to receive remuneration beyond performance- and market-related factors. Premised on the theory of planned behavior, this study investigates whether CEO generalist experience magnifies the likelihood of boardroom backscratching. Using 9482 firm-year observations spanning 1999–2018, our analysis shows that firms with greater CEO generalist managerial experience are more likely to engage in boardroom backscratching, via both cash- and equity-based compensation. We provide further evidence that backscratching firms with (...) CEOs that possess greater generalist experience tend to overinvest, particularly via non-capital expenditure, as a channel for empire building and private rent extraction. We also find that a higher portion of female independent directors sitting on the board and the compensation committee mitigates the positive relationship between CEO generalist managerial experience and boardroom backscratching, which we attribute to greater ethicality of, and increased monitoring exercised by, female independent directors. (shrink)

Two hundred and twenty-six state employees completed a structured questionnaire that investigated their ethical values and training needs. Top management were more likely to have attitudes against cronyism and giving advantage to others. Individuals higher in the organizational hierarchy, and female employees were more likely to believe that discriminatory practices were an ethical concern. In addition, employees with a larger number of clients outside of the organization were more supportive of the need to maintain strict confidentiality in business dealings. (...) Employees'' awareness and use of the organization''s code of conduct generally proved to be poor predictors of ethical values. Other analyses revealed that a variety of sociodemographic factors, job characteristics and ethical values predicted specific areas of training needs in ethics. (shrink)

Employee attributions and emotional reactions to unethical behavior of top leaders in an organization recently involved in a highly publicized ethics scandal were examined. Participants (n = 76) from a large southern California government agency completed an ethical climate assessment. Secondary data analysis was performed on the written commentary to an open-ended question seeking employees' perceptions of the ethical climate. Employees attributed the organization's poor ethical leadership to a number of causes, including: lack of moral reasoning, breaches of trust, hypocrisy, (...) and poor ethical behavior role modeling. Emotional reactions to corruption included cynicism, optimism, pessimism, paranoia and fear, and were targeted at top leaders, organizational practices (i.e., the old boy network, nepotism, and cronyism) and ethics interventions. Implications for leadership training and other organizational ethics interventions are discussed. (shrink)

Abstract.Reliable Darwinian theory shows that pure altruism cannot persist and expand over time. All higher organisms show inheritable patterns of caring and discrimination. The principal forms of discriminating altruisms among human beings are individualism (different from egoism), familialism, cronyism, tribalism, and patriotism. The promiscuous altruism called “universalism” cannot endure in the face of inescapable competition. Information can be promiscuously shared, but not so matter and energy without evoking the tragedy of the commons. Universalism is not recommendable even as an (...) ideal. Survival now requires the creation of an intellectual base for a new patriotism. (shrink)

The article presented a panegyric reading of the Sermon on the Plain in the Malawian context. It observed that, unlike its Matthean counterpart, the Sermon holds an insignificant place in African hermeneutics. Based on the Sermon’s structure and content the article proposed the Greco-Roman panegyric, whose function was to inculcate commonly held values, as a framework for reading of the Sermon. It argued that when read in its original context as a Greco-Roman panegyric, the Sermon’s radical stance on poverty and (...) riches had significant implications for African and Malawian socio-economic realities. It brought into light the complicated relationships between the poor and rich both among Luke’s original audience and the contemporary Malawian context. The panegyric reading of the Sermon also had a significant bearing on the application of the ubuntu philosophy in socio-economic interrelationships in Malawi. The article posited that the socio-economic inequalities in Malawi caused by corrupt, cronyism and nepotism not only challenge the majority Christian status of the nation but also the foundations of the African values of ubuntu. As a panegyric, the Sermon therefore challenges Malawian Christians to rethink their values and the relationship between the rich and the poor.Contribution: The article provides a new perspective to the interpretation of the Sermon on the Plain in African context. Against the background of its apparent neglect in African hermeneutics, the article underscores the relevance of the Sermon on the Plain to -socio-economic discourse in Malawi in particular and Africa in general. (shrink)

The backlash against the Olympic Games reflects the failure of the major global institutions in dealing with the social and ethical consequences of globalisation in areas such as the environment, poverty, terrorism and natural disasters. Disillusionment with the Olympic Games mirrors the disenchantment with the perceived values of globalisation, including winning at any price, commercial exploitation by MNCs, intense national rivalry, cronyism, cheating and corruption and the competitive advantage of advanced nations. How could the Olympic Movement reverse this perception? (...) The most important change would be in the area of leadership. Revitalising the Olympic spirit will require a revolution at the IOC. Character, credibility and communication will be the critical success factors. Before appointing the next President of the IOC, there is an exciting opportunity to reconceptualise the Games as a platform for building a framework of global values to counter-balance the naked economic priorities currently dictating the pattern of globalisation. In reinventing the Olympic Games, it is important to recognise that the modern Games are based upon an anachronism. The idea that amateur sport is both the key to individual moral development and world harmony is largely an invention of the British aristocracy, whereas the original Greek Games not only celebrated the classical ideal of `a sound mind in a sound body', but also involved professional athletes and commercial activity. In making the Olympic Charter relevant to the 21st century, and in making the Olympics more than just a speculator sporting event, there is a strong case for the Games to include a wider spectrum of activities, including arts programs and policy forums, which address the well-being of all humanity in a competitive global economy. (shrink)

The construction of the Philippine''s first nuclear power plant by Westinghouse has come to symbolize the corruption and cronyism of the Marcos'' years. The plant has created so much controversy that it has yet to operate, in a country that desperately needs electrical power. The entire affair suggests that American multinationals cannot simply adopt the business practices of the host country, but instead must carefully analyze the political and business environments of their foreign based operations, and then take into (...) account the long-term ethical implications of their decisions. The case also suggests that government needs to play a more active role in regulating multinationals, especially when sophisticated and potentially dangerous technologies are involved. (shrink)

In 2015, the Retraction Watch leadership, Adam Marcus and Ivan Oransky, retracted an article that they had written for The Lab Times in 2013. According to Marcus and Oransky, in the 2013 piece, they had offered “bad advice” to academics. In the 2013 piece, Marcus and Oransky suggested that when an error, actual or potential, was detected in a published paper, that they should first contact – by name or anonymously – the editor, then the author, and finally the research (...) institute, following Committee on Publication Ethics guidelines. They also recommended readers to copy Retraction Watch on their communications – most likely so that Retraction Watch could gather a scoop – suggesting even that by mentioning or copying Retraction Watch would twist the arm of the editor, and perhaps speed up – or influence – the journal’s action, or decision. Offering such bad, flawed and unscholarly advice, claiming boldly, without any citations “that cronyism can protect obvious fraud”, the 2013 Lab Times piece was a clear act of antiscience advice. Clearly recognizing their own bad advice, and flawed and misleading logic, but taking considerable time to do so, Adam Marcus and Ivan Oransky retracted their 2013 article in December of 2015, but replaced it with a substitute offering even worse advice, indicating to concerned academics to scrap their 2013 advice of contacting authors, editors and academic institutes, and opting instead for a potentially biased anonymous option, using a whistle-blower website, PubPeer. Marcus and Oransky failed to indicate any financial or other conflicts of interest in their Lab Times piece. This is important, because, as we now know, the marriage between these watchdogs has been in the pipe-line for years now, reaching public prominence in early 2016 during a meeting in UC Berkeley, and culminating in generous financial backing – in the hundreds of thousands of US$ – by the Laura and John Arnold Foundation, to both Retraction Watch and PubPeer. This commentary examines how the retraction of one badly written journalistic piece for lack of professionalism led to the emergence of an even worse article full of biases. Perspectives on how this could be interpreted, and what should happen, are provided. (shrink)

How do work motivations and sector perceptions differ between graduate students at prestigious Business Schools and Public Policy in Asia? Where do Asia’s future business and government leaders want to work, and why? To answer these questions, we compare Asian Master of Business Administration students with Master of Public Policy and Master of Public Administration students from three leading Schools based in Singapore through a survey study and a series of seven focus groups. Our findings indicate that work motivations, sector (...) perceptions, and career preferences differ between both groups but slightly less so than between their Western counterparts. Moreover, future Asian leaders equally value being successful while many view government as bureaucratic and prone to cronyism regardless of degree program and employment preference. We discuss how our findings may advance a more robust management and leadership research agenda for Asia. (shrink)

This qualitative study examines the moral courage of leaders working for democracy and human rights in Burma. As Burma transitions to democracy moralcourage will be essential for leaders of civil society organizations as they face corruption, cronyism, and resistance to change. From interview data with nineteen leaders in Burma and Thailand, and a review of the literature we developed a conceptual model of moral courage that suggests that the relationship between moral motivation and the demonstration of moral courage was (...) mediated by political, social, and individual level factors including the activists’ knowledge and experiences. In addition to applications for leadership in civil society organizations in emerging democracies, results suggest individuals in private, public, or non-governmental organizations, when confronted with coercion, corruption, exploitation, or denial of due process can act with moral courage by engaging their moral principles, commitment, compassion, and sense of urgency while recognizing risks and potential hardship. (shrink)

Broadly defined, government corruption is the abuse of public power for private gain. It can assume various forms, including bribery, embezzlement, cronyism, and electoral fraud. At root, however, government corruption is a problem of trust. Corrupt politicians abuse the powers entrusted to them by the electorate (the principal-agent problem). Politicians often resort to corruption out of a lack of trust that other politicians will abstain from it (the collective action problem). Corruption breeds greater mistrust in elected officials amongst the (...) public. The problem of trust is compounded where a lack of transparency and asymmetric information impede effective control over the exercise of public powers. (shrink)

Based on personal experience, interviews, and numerous anecdotal evidence documented in the press, this paper analyzes current practices and focuses on future challenges of business development in Ukraine. In particular, the most recent developments in evolution of business relations and ethics are studied. Business ethics practices are viewed within the current political, economic, and social context. A unique combination of three factors: old communist mentality, new "mafia-style" capitalism, and Ukrainian nationalism have created a situation where applying internationally accepted ethical concepts (...) may not lead to success. The new entrepreneurial spirit and privatization windfalls against the background of cronyism, bureaucracy, and organized crime have produced the new rules of doing business. Business ethics reflect a peculiar combination of the above factors and make them difficult for the outsider to comprehend. (shrink)

Peer review of grant applications, it has been suggested, might be distorted by what is popularly termed old boyism, cronyism, or particularism. We argue that the existing debate emphasizes the more uninteresting aspects of the peer review system and that the operation of old boyism, as currently understood would have little effect on the overall direction of science. We identify a phenomenon of cognitive particularism, which we consider to be more important than the institutional cronyism analyzed in previous (...) studies. We illustrate with material drawn from observation of grant-awarding commit tees of the Science and Engineering Research CounciL In the concluding discussion, we explore some of the possible implications for the peer review system. (shrink)

The article discusses the Kenyan post-2007 elections political crisis within the framework of 'libertarian communitarianism' that integrates individualistic self-interest with traditional collectivist solidarity in the era of globalization in Africa. The author argues that behind the Kenyan post-election anarchy can be analyzed as a type of 'prisoner's dilemma' framework in which self-interested rationality is placed in a collectivist social contract setting. In Kenya, this has allowed political manipulation of ethnicity as well as bad governance, both of which have prevented the (...) building of a strong, impartial state. In Kenya, socio-economic disparities and historical injustices due to corruption, nepotism, cronyism and other forms of favoritism have maintained ethnic and other internal tensions, which exploded into open conflict after the disputed December 2007 elections. The author shows how the 'libertarian communitarist' politico-economic context lacks shared values and precludes forward-looking solutions for social justice that promote public good and national unity. Instead, a nation remains divided with its people set up in competitive positions, because there is public trust neither in partisan and self-interested governments nor in inefficient state structures with often (ethnically and/or regionally) biased (re)distribution of resources and unequal service delivery. The greed of the political elites and grievances of the ordinary citizenry maintain distrust across the nation and focus on past injustices rather than finding a shared agenda for future unity. The author suggests that in order to build up public trust, to strengthen the state structures and to gain national unity, it is necessary to focus on shared values and a forward-looking concept of justice, acceptable to all. (shrink)

The article discusses the Kenyan post-2007 elections political crisis within the framework of ‘libertarian communitarianism’ that integrates individualistic self-interest with traditional collectivist solidarity in the era of globalization in Africa. The author argues that behind the Kenyan post-election anarchy can be analyzed as a type of ‘prisoner's dilemma’ framework in which self-interested rationality is placed in a collectivist social contract setting. In Kenya, this has allowed political manipulation of ethnicity as well as bad governance, both of which have prevented the (...) building of a strong, impartial state. In Kenya, socio-economic disparities and historical injustices due to corruption, nepotism, cronyism and other forms of favoritism have maintained ethnic and other internal tensions, which exploded into open conflict after the disputed December 2007 elections.The author shows how the ‘libertarian communitarist’ politico-economic context lacks shared values and precludes forward-looking solutions for social justice that promote public good and national unity. Instead, a nation remains divided with its people set up in competitive positions, because there is public trust neither in partisan and self-interested governments nor in inefficient state structures with often (ethnically and/or regionally) biased (re)distribution of resources and unequal service delivery. The greed of the political elites and grievances of the ordinary citizenry maintain distrust across the nation and focus on past injustices rather than finding a shared agenda for future unity.The author suggests that in order to build up public trust, to strengthen the state structures and to gain national unity, it is necessary to focus on shared values and a forward-looking concept of justice, acceptable to all. (shrink)

How do work motivations and sector perceptions differ between graduate students at prestigious Business Schools and Public Policy in Asia? Where do Asia’s future business and government leaders want to work, and why? To answer these questions, we compare Asian Master of Business Administration students with Master of Public Policy and Master of Public Administration students from three leading Schools based in Singapore through a survey study and a series of seven focus groups. Our findings indicate that work motivations, sector (...) perceptions, and career preferences differ between both groups but slightly less so than between their Western counterparts. Moreover, future Asian leaders equally value being successful while many view government as bureaucratic and prone to cronyism regardless of degree program and employment preference. We discuss how our findings may advance a more robust management and leadership research agenda for Asia. (shrink)

Korupcija je siroko rasirena pojava u svim zemljama tranzicije. Srbija u tom pogledu nije izuzetak, naprotiv, uvek je bila veoma visoko rangirana na svim indeksima korumpiranosti Transparency International. Medju drustvenim sferama koje se smatraju prozetim korupcijom dosta visoko mesto u percepciji korupcije uvek je zauzimala, nazalost, oblast visokog obrazovanja. Da bismo proverili opravdanost ovakvih percepcija, sprovedeno je istrazivanje medju zaposlenima na Univerzitetu u Beogradu. Nalazi su potvrdili da korupcije u visokom skolstvu ima, kao i da nema prevelike spremnosti da se (...) ovoj pojavi stane na put, da se bar umanji, ako se vec ne moze iskoreniti. (shrink)

Gender greatly impacts access to opportunities, potential, and success in corporate leadership roles. We begin with a general presentation of why such discussion is necessary for basic considerations of justice and fairness in gender equality and how the issues we raise must impact any ethical perspective on gender in the corporate workplace. We continue with a breakdown of the central categories affecting the success of women in corporate leadership roles. The first of these includes gender-influenced behavioral factors, such as the (...) requirements and expectations of gendered verbal and nonverbal communication styles as well as appearance. We move on to address the impact of family on corporate leadership opportunities and success, discussing the asymmetrical evaluation of an individual’s potential, authority, and competence based on gender stereotypes of familial obligations and expectations. Finally, we address how gender impacts access to networking and sponsorship opportunities and the long-term effects of systematic limitations on women’s inclusion in the upper echelons of corporate leadership. We conclude with a summary of the questions and issues raised by our discussion and direct individuals to consider how different ethical systems and moral requirements might influence their interpretations of gender and leadership in the corporate workplace. (shrink)

In this review of Ezra Suleiman's book I explain his argument that democracies need independent professional bureaucracies with Weberian "impersonal" authority, and that the greatest threat to the authority of government and the health of democracy is the trend towards turning bureaucracy into an instrument of the governing political party of the day.