La normalización de la corrupción como proceso organizacional: caso La Polar Chile

Abstract

During 2011, La Polar was the protagonist of one of the most relevant financial scandals in the history of Chile due to the level of corruption that the case revealed, it was accused of carrying out automatic and unilateral repactions to the credits granted to its clients in delinquency status. The purpose of this case analysis is to identify the individual and organizational factors that gave rise to the phenomenon of the normalization of corruption in La Polar, related to the routine establishment of corrupt practices. The case incorporates the internal and external analysis of the company, such as the construction of the description of the main events that precede the exposure of the corrupt act in 2011. The case analysis uses the theoretical model of normalization of corruption proposed by Ashforth & Anand, (2003), in order to understand the dynamics and mechanisms that underlie the adoption of corruption within the organization. Two of the pillars that make up the model, institutionalization and rationalization, were studied. The methodology used contemplates the qualitative study of the case. The method used to review the information of the case, considers the narrative and descriptive nature and uses secondary sources such as reports of the entity, journalistic documentation and interviews with employees. The main findings of the La Polar Case study recognize the existence of mechanisms and dynamics that contributed to generating normalization schemes. Regarding institutionalization, it is believed that authoritarian leadership, the trust generated towards the leader and the use of neutralizers of the harmful consequences of the acts, had an important impact on the initial decision of the corruption process. In the second phase, the way in which aspects were established in the company's organizational memory, associated with positive results and strategic projects, which together showed corruption as an effective means to achieve the defined goals, is verified. The routine is established thanks to the performance of independent tasks and the progressive exposure of individuals to illegal activities. In relation to rationalization, it is believed that it played a key role in normalizing the corrupt processes of Polar. The "denial of responsibility" by managers is verified, making use of mechanisms such as the transfer of responsibilities and the dissemination of responsibility. Regarding the rationalizer of “social weighting”, the testimonies show the repetitive comparison that was made by the main parties with actors in their opinion more corrupt. Finally, the role that language played within the rationalization of the corrupt act is identified, becoming a key buffer in the process of acceptance of the corrupt act. The results of this case study expose the importance of recognizing corruption in business practice and the ways to counteract this behavior, being a priority to continue contributing through research in this area.