Psychology and white collar crime - compliance recommendations based on the social and psychological reality dictating perception

• Published in: Journal of financial crime 2024-03, Vol.31 (2), p.408-415
• Main Authors: Teichmann, Fabian Maximilian Johannes, Wittmann, Chiara
• Format: Article
• Language: English
• Subjects: Corporate culture; Decision making; Ethics; Proof theory; Social responsibility; Whistleblowing
• ISSN: 1359-0790; 1359-0790; 1758-7239
• DOI: 10.1108/JFC-07-2022-0158

Purpose To construct effective compliance programmes, the phenomenon of non-compliance and variations in its abidance must be elucidated. The purpose of this paper is to discuss the social reality of ethical decision making, which examines the internalisation of moral norms and realities of social behaviour and, therefore, the general non-compliance with everyday laws (Tyler, 2006). Design/methodology/approach This paper makes use of several social theories, including social proof theory, traditional social theory and social control theory. Humans are social beings, and decision-making in ethics is strongly influenced by herding behaviour (Roy, 2021). The behaviour of others and normative ethical standards inform the compliance of behaviour to an undiminishable degree. Findings Although there is a host of factors to consider, the success of compliance can largely be attributed to people’s perception and reception of authority. The perception of authority and legitimacy plays a vital role in appreciating the complexity of rule following. Legitimacy, and its embodiment by persons in public roles, is a cornerstone of the subsequent discussion. Originality/value This paper uncovers the underlying motivations of non-compliance as well as the social psychology involved in the ethics of compliance. Cross-disciplinary connections are made between the private and public sector and practical compliance recommendations. The significant impact of integrity culture and value-based compliance emerges from the dissection of the social reality.