The role of power in financial statement fraud schemes

In this paper, we investigate a large-scale financial statement fraud to better understand the process by which individuals are recruited to participate in financial statement fraud schemes. The case reveals that perpetrators often use power to recruit others to participate in fraudulent acts. To illustrate how power is used, we propose a model, based upon the classical French and Raven taxonomy of power, that explains how one individual influences another individual to participate in financial statement fraud. We also provide propositions for future research

Perceived leader integrity as a mediator between ethical leadership and ethical climate in a teaching context

Background: Scandalous incidents occurring in prominent organisations in the world have brought to limelight the role of leaders in shaping the ethical climate of their organisations. As a result, several studies across different organisational/occupational contexts and climes have examined and unanimously proven that ethical leadership was positively related to ethical climate. However, there is rarely any of these studies that was conducted in teaching context. Besides, the mechanisms involved between ethical leadership and ethical climate seems not to have been addressed in literature. Thus, this paper reports the findings of a study that investigated the mediating role of perceived leader integrity in the ethical leadership-ethical climate relationship among teachers. Methods: Data were collected from 336 teachers (105 male and 231 female) in three-time periods using measures of ethical leadership, perceived leader integrity, ethical climate, and demographics. Results: The results from OLS regression-based path analysis showed that: 1) ethical leadership was positively related to perceived leader integrity, 2) perceived leader integrity was positively related to ethical climate, 3) ethical leadership was positively related to ethical climate, and 4) the positive relationship between ethical leadership and ethical climate was mediated by perceived leader integrity. Conclusions: The current study extends the social learning theory by identifying perceived leader integrity as a mechanism underlying the relationship between ethical leadership and ethical climate. The findings have some implications for personnel selection especially in relation to selection of ethical leaders.</p

Stakeholder theory in social entrepreneurship: a descriptive case study

In this paper, a descriptive case study of a social entrepreneurial firm is used to demonstrate stakeholder salience and stakeholder social issue management valence. The methodology is to use a semi structured interview with a social entrepreneur to identify and map the firm's stakeholders' salience and stakeholders' social issue management valence. The resulting map uses spheres, sized proportionally to social issue management valence, to represent the various stakeholder groups. Each map shows the positioning of stakeholders according to their salience at critical points in the life of the social entrepreneurship. This paper contributes to stakeholder theory through its use of an innovative methodology to combine and view the stakeholders and their importance to the social entrepreneur on a single map. This map incorporates the elements of stakeholder salience with stakeholder social issue management valence. This mapping approach enables us to visualize how salience and valence positions change at critical times. Social entrepreneurs applying this mapping method can balance the allocation of their time and attention to stakeholders while simultaneously keeping with their social mission