Information on the fight against corruption and corporate governance practices: evidence of organized hypocrisy

Barros, Arthur do Nascimento Ferreira; Rodrigues, Raimundo Nonato; Panhoca, Luiz

doi:10.1057/s41310-019-00060-2

Cited by 12 publications

(13 citation statements)

References 46 publications

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“…To change the perception of the public without changing the company's essence, it is unnecessary to change the organizational behavior in response to the public interest; instead, it suffices to change the social perception (cf. Barros, Rodrigues, & Panhoca, 2019). To this end, the company reports to prove that its activities are compliant with the rules of the surrounding environment (Archel et al, 2009;Gray, Kouhy & Lavers, 1995).…”

Section: Discussionmentioning

confidence: 99%

“…Such a manipulation of social perceptions has been corroborated in Brazil by Barros, Rodrigues and Panhoca (2019). The authors coined the phrase "organized hypocrisy" to refer to the discrepancy between the discourse and the anti-corruption actions adopted by companies involved in corruption scandals in Brazil.…”

Section: Review Of the Literaturementioning

confidence: 99%

“…In the corporate context, several publications have analyzed the relationship between the company's reputation and the contents of social and environmental reports (e.g., Koprowski et al, 2019;Odriozola & Baráibar-Diez, 2017). Other types of reports can also be included when addressing, for example, the image of a "corrupt" company and its relationship with interest groups (e.g., Barros, Rodrigues, & Panhoca, 2019;Etxeberria & Odriozola, 2017).…”

Section: Review Of the Literaturementioning

confidence: 99%

“…The underlying assumption is that companies adopt communication strategies in their financial reports to assure their survival (Dowling & Pfeffer 1975;Odriozola & Baráibar-Diez, 2017). Such strategies are particularly aimed to: 1) influence the society's perceptions (Barros, Rodrigues, & Panhoca, 2019;Deegan, 2002;Guthrie & Parker, 1990), 2) lead interested parties to support the company with positive responses (Barros, Rodrigues, & Panhoca, 2019), and 3) consequently, gain or preserve social legitimacy (Etxeberria & Odriozola, 2017;Neu, Warsame, & Pedwell, 1998).…”

Section: Review Of the Literaturementioning

confidence: 99%

“…Over two-thirds of the countries, including Brazil, have faced a high level of corruption as engaged in by political, economic and bureaucratic elites (Garcia & Theodosius, 2020). Coupled with the legal weaknesses of emerging democracies, this level results in low guarantees for private investors (Barros, Rodrigues, & Panhoca, 2019;Koprowski et al, 2019). In Brazil, the corruption probe Operação Lava Jato [Operation Car Wash] has since 2014 pointed to the involvement of important civil construction companies in corruption scandals.…”

Section: Introductionmentioning

confidence: 99%

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Os Escândalos De Corrupção Na JBS S.A. E As Estratégias De Legitimidade Organizacional De Lindblom

Oliveira

Rodrigues

Guerra

2020

CGG

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Objective: Evaluate the narrative financial reports released by the Brazilian meatpacker JBS SA and identify how the company has sought to influence its information user while coping with its recent corruption scandals. Method: A qualitative analysis of narrative financial reports – Market Notices, Material Facts, Management Report, and Reference Form and Prospects – was carried out for the base year 2017 based on the Legitimacy Theory (Lindblom, 1994).Originality/Relevance: Parameters are shown that could be used by managers, separately or concurrently, intentionally or unintentionally, to achieve, preserve or recover the company’s legitimacy. Mechanisms of manipulation are also shown as used in corporate reports.Results: JBS used Lindblom’s (1994) first legitimacy strategy in all reports, but more frequently in the Material Facts. Such a strategy was used for regulatory and penal reasons (i.e., the Securities and Exchange Commission of Brazil, and the Federal Public Prosecutor’s Office) as JBS acknowledged the impact of the negative event (i.e., the corruption scandals covered by the media) and provided information related to how it has addressed such a legitimacy-threatening problem.Theoretical/Methodological contributions: Lindblom’s (1994) 2nd and 3rd legitimacy strategies were not as frequent (9% and 12,5% respectively) as reported in the literature. Adding to the literature, this study provides a better understanding of financial reporting as an instrument of legitimacy and manipulation within the political and economic environment.

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Section: Discussionmentioning

confidence: 99%

Section: Review Of the Literaturementioning

confidence: 99%