Accounting and Construction of Wage Theft: A Form of Organisational Corruption

Abstract

This study examines the role of accounting in the construction of wage theft and its association with organisational corruption. In so doing, we reveal that owners develop skilful accounting practices to steal workers’ wages, overtime payments, bonuses, maternity allowance and other benefits legitimate and illegitimate ways which we argue an act of corruption. It appears that wage theft is not an isolated act that is practised by an individual organisation, rather it becomes a norm across a particular sector of an economy. In fact, to secure their wealth and power, owners rationalise, socialise, and institutionalise wage theft across the industry which we argue ‘normalisation of organisational corruption’. This study, therefore, argues that wage theft is not only skilful accounting practices but also an act of organisational corruption which is normalised in an emerging economy through secrecy, social and cultural norms, and political power of the owners and their association.