That is what most of us believe most of the time. They do happen, of course, sometimes with alarming frequency, sometimes with calamitous results. We explain these unnatural events as the consequences of lack of foresight, poor design, poor engineering andlor errors by some person or persons. Improve the design and production, admonish or train the persons to be more careful (less careless?) and they won't happen. It is easy to think of examples in the home, the laboratory, the office ... and in the public domain -for example, Chernobyl, Challenger, Bhopal, The Herald of Free Enterprise, King's Cross. The premise leads to an explanation of the cause, which in turn leads to the public inquiry recommending some action to prevent a similar accident occumng again. Chernobyl, for example, was blamed on a combination of unsatisfactory design and operator error. So also was the Zeebrugge disaster. So also ... and it is easy to make a long list including Flixborough, Torrey Canyon, Three Mile Island (TMI), to which King's Cross will probably soon be added. In each case the inquiry has prescribed corrective action based on this 'accidents are unnatural' (AAU) model: a technological fix plus wrist-slapping. In well-established technologies, in which we have many thousands or even millions of operating hours of experience. the repeated application of this process should by now have reduced the accident rate to zero -or, at the very least, to very nearly zero. Not a bit of it; there are no signs of this happening, and in some technologies the rate is rising. Could it be that we have got something wrong in our explanation?

Normal accidents. Living with high-risk technologies

https://journals.sagepub.com/doi/pdf/10.1177/0149206316680030

Crises and Crisis Management: Integration, Interpretation, and Research Development:

Organizational misconduct has substantial effects on the well-being of a firm and its stakeholders. As this body of work has grown, organizational scholars have devoted considerable research attent...

The corrective actions organizations pursue following misconduct: A review and research Agenda

Firms have traditionally responded to environmental violations by increasing information disclosure and/or communication to manage stakeholder perceptions. As such, these approaches may be symbolic in nature, with no genuine intention to improve the environment. We draw from restorative justice grounded in stakeholder theory and explore a relatively new approach in the form of supplemental environmental projects (SEPs) aimed at restoring the environment, and empirically examine the role of corporate governance (board structure) in firms’ decisions to undertake reparative actions. Using environmental violations and SEPs data from the US Environmental Protection Agency between 2002 and 2015, we find that firms with smaller boards are more likely to undertake SEPs. We also find that firms with higher board independence and CEO duality undertake SEPs more frequently; however, board gender diversity and the existence of a sustainability committee appear to have no impacts. These results are robust to propensity score matching and an alternative data source. We extend the scope of stakeholder theory by emphasizing a new approach—restorative justice—by which corporations can repair damaged relationships and also improve the environment. We also contribute to corporate governance and environmentalism literature by identifying governance structures that promote environmental restorative justice. Thus, our study will inform different stakeholders, including regulators, shareholders, and boards of directors, and will open new avenues for business ethics scholarship.

Corporate Governance and Supplemental Environmental Projects: A Restorative Justice Approach

Although there is ample evidence that stock markets react negatively to unethical corporate behavior, our understanding of the mechanisms that shape variation in these reactions across different incidents of misconduct remains underdeveloped. We propose and test a framework for explaining this variation by focusing on the role of the media in disseminating initial information about misconduct. We argue that the signaling effects of this information are important for investors because corporations have strong incentives to limit the information they disclose about misconduct. More specifically, we hypothesize that investors are more likely to react negatively when the media presents clear and credible information that misconduct occurred, that the firm was responsible for it, and that the misconduct was the result of deeper organizational problems. We also predict that information which signals that a firm has restorative capacity tempers investor reactions when the media places blame for misconduct on the corporation rather than specific individuals. We test our hypotheses in a unique sample of 345 acts of corporate misconduct in five European countries. Our findings provide broad support for our hypotheses, and we discuss implications for research on corporate misconduct and the role of non-state actors in regulating unethical corporate behavior.

/pdf/which-firms-get-punished-for-unethical-behavior-explaining-1rngnlu6eo.pdf

Which Firms Get Punished for Unethical Behavior? Explaining Variation in Stock Market Reactions to Corporate Misconduct

In this article, we examine how regulators, prosecutors, and courts might support and encourage the efforts of organizations to not only reintegrate after misconduct but also to improve their conduct in a way that reduces their likelihood of re-offense (rehabilitation). We explore a novel experiment in creative sentencing in Alberta Canada that aimed to try to change the behaviour of an industry by publicly airing the root causes of a failure of one the industry's leaders. Drawing on this case and prior work, we articulate a model for a responsive and restorative approach to organizational misconduct that balances the punitive role of regulators and courts with new roles in supporting and overseeing rehabilitation.

A Responsive Approach to Organizational Misconduct: Rehabilitation, Reintegration, and the Reduction of Reoffense

Dialogic regulation : the talking cure for corporations

A Responsive Approach to Organizational Misconduct in advance

The corporation is a social institution

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A Responsive Approach to Organizational Misconduct: Rehabilitation, Reintegration, and the Reduction of Reoffense

Dialogic regulation : the talking cure for corporations

A Responsive Approach to Organizational Misconduct in advance

The corporation is a social institution