Fanto — Volume 57, Issue 1

Fanto examines misconduct by senior decision-makers in large public corporations, arguing that legal analysis inadequately addresses group and organizational factors contributing to such misconduct. The author contends that laws typically focus on individual liability while overlooking organizational cultures and structures that facilitate or encourage wrongdoing. Fanto discusses how groups and organizations can either promote misconduct or serve as checks against individual malfeasance. The article explores how business schools and organizational practices have undermined moral development of executives by emphasizing self-interested individualism. Fanto draws from social psychology and organizational studies to understand how corporate environments shape executive behavior. The author examines corporate governance structures, arguing that current legal frameworks fail to adequately recognize organizational contributions to misconduct. Fanto advocates for reforms recognizing organizational liability and responsibility for senior executive misconduct. The piece demonstrates how group and organizational factors significantly influence whether misconduct occurs, suggesting that legal reform should address organizational structures and cultures alongside individual accountability mechanisms.

Topics: Corporate Law

Keywords: corporate misconduct · organizational behavior · senior executives · corporate governance · organizational culture