Pressure, opportunity and predisposition: A multivariate model of corporate illegality

Abstract

Corporate illegality researchers often maintain that wrongdoing occurs when factors pressure a firm to behave illegally, leading managers to make a rational decision to commit wrongdoing. Yet, corporate illegality results also from conditions of opportunity and predisposition, and it may be an unintended outcome of corporate actions. A multivariate model of corporate illegality is proposed, in which situational factors—conditions of pressure, opportunity, or predisposition—lead to unintentional and intentional illegality. The model distinguishes between intentional and unintentional illegal activities, and it recognizes that intentional illegality results from a decision to engage in wrongdoing, so characteristics of the individual decision maker affect the likelihood of wrongdoing. Implications of this model for researchers and managers are discussed.