When allegedly corrupt organizations are attractive

Abstract

Purpose– Based on social identity theory, the purpose of this paper is to explore how detrimental allegations of corruption are to potential applicants’ organizational attraction and how potential harm can be absorbed by choosing an appropriate response strategy.Design/methodology/approach– Experimental survey data were collected from 239 German employees likely to be in the job market again in their careers.Findings– Potential applicants are less attracted to allegedly corrupt organizations. Accepting the allegation and undertaking structural change, appealing to higher organizational goals, and denying the allegation appear to be effective organizational response strategies. A strategy concordant with the one potential applicants would choose if they themselves were confronted with an allegation of corruption fosters attraction.Research limitations/implications– The experimental design limits external validity. Future research should investigate whether the findings hold in a field setting where additional information about the organization and the potential job is available.Practical implications– The findings demonstrate the need for organizational corruption prevention efforts. If organizations face allegations of corruption, they should carefully consider how to respond, what they signal by the chosen response strategy, and what applicants they are therefore likely to attract.Social implications– The observed interactions between organizations and individuals underline the need for societal efforts in creating a societal anti-corruption climate.Originality/value– The study highlights the critical role of allegations of corruption, organizational response strategies, and concordance with individual response strategies regarding potential applicants’ organizational attraction.