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Distributing Responsibility for Wrongdoing Inside Corporate Hierarchies: Public Judgments in Three Societies

Published online by Cambridge University Press:  27 December 2018

Abstract

The decision rules individuals use to judge wrongdoing committed inside corporations and other hierarchical organizations are not well understood. We explore this issue by asking random samples of individuals in Moscow, Tokyo, and Washington, D. C., to respond to four short vignettes describing acts of wrongdoing by people in corporations. The vignettes are experiments that manipulate the actor's mental state, the actor's position in the organization, and whether the actor's decision was influenced by others in the organization. We examine (1) the distribution of responsibility among people in the organization, (2) how individual responsibility affects the attribution of responsibility to the organization itself, and (3) cross-national differences in attributions. We find that both what the actors did (their deeds) and the position they occupied (their roles) significantly influence the responsibility attributed to them. The responsibility attributed to the organizations themselves is a function of the responsibility attributed to the actors inside the organization, but not a function of the independent variables in the experiments. Cross-national differences emerge with respect to the responsibility assigned both to individuals and to the organizations themselves. We discuss implications of these results for past and future work.

Type
Articles
Copyright
Copyright © American Bar Foundation, 1996 

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References

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Fatalism and individualism define a cultural dichotomy concerning individual actors. Together, they describe an “individualistic” dimension. Fatalism tends to blame no one for misfortune, sometimes because of a belief that individuals lack the ability to control events. Individualism holds individuals responsible for their acts of intentional wrongdoing and lack of due care. The egalitarian-hierarchical dimension defines opposite orientations to communal/collectivist forces. A hierarchical culture respects and gives deference to expertise and authority. “[P]eople in authority are presumed to know what they are doing and to have acted reasonably unless proven otherwise” (Polisar, & Wildavsky, , 1 J. Pol'y Hist. at 149). Egalitarian cultures are more distrustful of hierarchies and the power structures they generate. Hierarchical cultures are more deferential to excuses based on following the directive of a superior.Google Scholar

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84 The survey was conducted by the Survey Research Center at the University of Maryland.Google Scholar

85 The Japanese group was lead by Professor Kazuhiko Tokoro from Rikkyo University and included Naotaka Kato, Mikio Kawai, Takashi Kubo, Kubo, and Haruo Nishimura. We had worked with Professors Nishimura and Tokora on earlier collaborations. The Russian colleagues included Gennady Denisovsky, Polina Kozyreva, and Michael Matskovsky, all from the Institute of Sociology of the Russian Academy of Sciences, whom we had also worked with on an earlier collaboration.Google Scholar

86 The advantage of vignette experiments is the relative clarity of causal inferences. A disadvantage is that judgments with respect to any specific vignette may be partly the result of idiosyncratic factors embedded in the story rather than general underlying decision rules. Oneway to address this problem is to ask multiple vignettes on basically similar issues. We have adopted that strategy in this study. For general discussions of using vignettes inside surveys, see Peter H. Rossi & Steven L. Nock, eds., Measuring Social Judgments: The Factorial Survey Approach (Beverly Hills, Cal.: Sage Publications, 1982).Google Scholar

87 In the language of the white-collar crime literature, each of these stories focuses on “organizational crime” as compared to “occupational crime,” e. g., employee theft (Coleman, Criminal Elite (cited in note 35)).Google Scholar

88 The full text of all versions of all vignettes are available from the authors on request.Google Scholar

89 Stone, Where the Law Ends (cited in note 4).Google Scholar

90 The Failure to Publicize story involves a secondary rather than primary harm. The newspaper organization is not the creator of the toxic waste. However, wrongdoing by the media (information transmission organizations) would characteristically involve this sort of secondary injury (Failure to Publicize and prevent harm). We anticipated that the average responsibility of the actor in this vignette might be lower for this reason, but we expected thatall three variables (type of influence, hierarchy, and mental state) would exert some effect across all vignettes.Google Scholar

91 Kelman & Hamilton, Crimes of Obedience (cited in note 3).Google Scholar

92 The first of these questions was used to assess whether vignettes were comparable in severity; the second was a manipulation check for influence type; the third was a manipulation check for the actor's mental state.Google Scholar

93 As in other situations of multiple wrongdoers, it is possible that each person will be adjudged fully responsible for what happened. In this sense, there can be more than 100% responsibility for an untoward act.Google Scholar

94 Shaver, Attribution of Blame (cited in note 17); Hamilton & Sanders, Everyday Justice 111 (cited in note 8).Google Scholar

95 Hamilton & Sanders, Everyday Justice 114.Google Scholar

96 Id. at 111.Google Scholar

97 In addition, we believed that the general nature of the instructions given in the authority/obedience conditions would offer the actor a weaker excuse of just following orders.Google Scholar

98 The F-statistics presented in tables 1–4 are from ANOVA analyses that includes the three experimental variables and nation (Japan, Russia, United States). We have included nation in these analyses because, as we shall see below, this variable has a substantial effect on many responsibility judgments. Excluding nation from the analyses slightly alters the F-statistics. No effects that are not significant with nation in the models become significant when it is excluded. Two effects that are significant with nation included fail to reach significance when it is excluded: the mental state-influence interaction effect on co-worker responsibility in the Factory Waste vignette (table 2) and the influence effect on company responsibility in the Dangerous Drug vignette (table 4). In addition, the effect of hierarchy on boss responsibility in the Faulty Design vignette is significant at 0.05, not 0.01 (table 3).Google Scholar

We have presented F-statistics in this and subsequent tables for the sake of parsimony. Some readers, however, may gain a better feel for the data by knowing how these values translate into differences in means. The means (on a 100-point scale) for actor responsibility in the Factory Waste story are as follows: mental state: low = 78, high = 85; hierarchy: subordinate = 77, authority = 86; influence: obedience = 74, conformity = 80; autonomy = 89. The smallest significant difference reported in this table, the F of 6.7 for the mental state effect in the Faulty Design vignette, represents a mean difference of four points (low = 61, high = 65).Google Scholar

99 The “superior” boss in the Failure to Publicize story was held more responsible than the “subordinate” boss.Google Scholar

100 There were two significant mental state/influence interactions, in the Factory Waste and Dangerous Drug vignettes, but neither supported our hypothesis. In the Factory Waste case, there was a mental state effect in the conformity condition, but not in the obedience condition. In the Dangerous Drug vignette, the interaction was also partly due to a mental state effect in the conformity condition and partly due to the fact that in the autonomy condition the boss was held less responsible in the high mental state condition than in the low mental state condition. Both of these results can be explained in a post hoc fashion, but they clearly do not support our hypothesis.Google Scholar

101 See Jacob Cohen & Patricia Cohen, Applied Multiple Regression/Correlation Analysis for the Behavioral Sciences 198–217 (2d ed. Hillsdale, N. J.: Erlbaum, 1983).Google Scholar

102 Id. at 83–198.Google Scholar

103 One effect is significant at 0.05 but not at 0.01. In the Dangerous Drug vignette, there is a negative effect of mental state on company responsibility.Google Scholar

104 Actor responsibility and company responsibility are significantly correlated (.01) in the Faulty Design, Dangerous Drug, and Failure to Publicize vignettes.Google Scholar

105 Here and elsewhere in this report we have given a substantive interpretation to cross-national differences in means. One must be very cautious when doing this. The problem is one of establishing equivalence (Adam Przeworski & Henry Teune, The Logic of Comparative Social Inquiry 113–30 (Malabar, Fla.: Krieger Publishing. Co., 1982) (“Przeworski & Teune, Logic”); Nihar R. Mrinal, Uma Singhal Mrinal, & Harold Takooshian, “Research Methods for Studies in the Field,”in Leonore Loeb Adler & Uwe P. Gielen, eds., Cross Cultural Topics in Psychology 25–40 (Westport, Conn.: Praeger, 1994). Observed differences might simply be due to factors such as national differences in the way the scales are understood or subtle differences in translations.Google Scholar

As Przeworski and Teune, Logic 119, note, the problem of equivalence is not unique to cross-cultural work. With respect to many questions, “establishing equivalence of measurement… is probably no more problematic for a study of Russians and Americans than for one of American whites and blacks.”Google Scholar

Several considerations cause us to be willing to give a substantive interpretation to the differences in corporate responsibility scores. First, of course, these scores are responses to a known stimulus: the vignettes. We and our collaborators invested considerable effort to ensure as much as possible that the vignettes would be understood similarly in each society. Second, as we discuss below in the text, we do not observe an overall pattern of lower means for Russian respondents on other responsibility variables. All responsibility variables (e. g., actor responsibility, co-worker responsibility, boss responsibility, corporate responsibility) shared the same basic structure and used the same 0–100 scale. If the Russian questions were subtly different in their meaning, or if Russians used the scale in a different way, we should have observed this in all the questions.Google Scholar

Third, we asked respondents in all countries to rate the seriousness of the consequences of what happened on a 0–100 scale. We were concerned that Russian respondents might view the pollution vignettes as involving less serious outcomes than would American respondents. Differences in attributions of responsibility might, therefore, be due to differences in perceived seriousness. We found, however, that on average Russian respondents assigned “seriousness” scores similar to respondents in the other two countries. Below are the means for each country for each story.Google Scholar

Of course, one could argue that the response to all these scales may be affected by the different ways they are used across societies. However, the existence of multiple common indicators replicated in each of the three cities allows us to look for differences in patterns of responses or patterns of relationships among more than one variable. Hamilton & Sanders, Everyday Justice 120; Przeworski & Teune, Logic. Ultimately, the issue is whether a set of hypotheses are confirmed in a way that makes nonsubstantive explanations (e. g., problems with translations) implausible.Google Scholar

106 Gerlach, Alliance Capitalism (cited in note 6).Google Scholar

107 Valerie Hans, “Lay Judgments of Corporate Defendants” (presented at Law & Society Association annual meeting, Phoenix, Ariz., June 1994).Google Scholar

108 Hamilton & Sanders, Everyday Justice (cited in note 8).Google Scholar

109 Kelman & Hamilton, Crimes of Obedience (cited in note 3).Google Scholar

110 Clinard & Yeager, Corporate Crime 281 (cited in note 2).Google Scholar

111 Fisse & Braithwaite, Corporations, Crime 123 (cited in note 5).Google Scholar

112 Id. at 96; Hamilton & Sanders, “Responsibility & Risk” (cited in note 25).Google Scholar

113 Fisse & Braithwaite, Corporations, Crime 113.Google Scholar

114 Schlegel, Just Deserts 86 (cited in note 36).Google Scholar

115 The correlation between outcome seriousness and corporate actor responsibility ranges from 0.05 to 0.005 in our four stories. Outcome seriousness alone explains almost none of the variance in the corporate responsibility measure.Google Scholar

116 In this regard the Failure to Publicize story is intriguing. We intended to manipulate the boss's influence the same way in all four stories: in the authority version the orders were less specific. However, in this story the boss in the authority versions of the vignette was held more responsible than the boss in the subordinate versions. Differences in the way we manipulated the boss's influence in the various stories do not appear to account for this difference in attributions. In the subordinate versions the respondents were told, “Jim talks the problem over with his editor, and the editor tells him not to write a story about the waste because it might cause the factory to close and hurt the town's economy.” In the authority versions they were told, “The Editor-in-Chief has told Jim that he should not publish stories that might hurt the economy of the town.”Google Scholar

In a future report we plan to explore the possibility that the nature of the organization, whether it is professional or bureaucratic, may have helped to produce this result (Fisse & Braithwaite, Corporations, Crime 105–6; Blau, Peter, “The Hierarchy of Authority in Organizations,” 73 Am. J. Soc. 453 (1968).Google Scholar

117 Coleman, Foundations (cited in note 24).Google Scholar

118 French, Collective/Corporate Responsibility (cited in note 5).Google Scholar

119 T. Murase, “‘Sunao’: A Central Value in Japanese Psychotherapy,”in A. J. Marsella & G. M. White, eds., Cultural Conceptions of Mental Health and Therapy (Dordrecht, The Netherlands: D. Reidel, 1982).CrossRefGoogle Scholar

120 Fisse & Braithwaite, Corporations, Crime 123 (cited in note 5).Google Scholar