The responsibilization paradox: The legal route from deresponsibilization to systemic corruption in the Australian financial sector

Lorenzo Pasculli

doi:10.1093/police/paab068

The responsibilization paradox: The legal route from deresponsibilization to systemic corruption in the Australian financial sector

Lorenzo Pasculli

School of Law

Research output: Contribution to journal › Article › peer-review

2 Citations (Scopus)

45 Downloads (Pure)

Abstract

Recent corruption scandals suggest that the legal structures developed to responsibilize corporations might paradoxically enable the systematization of corruption across entire industry sectors. This study uses grounded theory methodology to develop a preliminary theoretical model of the correlations between the law, responsibilization, and the causes of systemic corruption. Through a qualitative examination of documental evidence from the case study of the recent Australian banking scandal, this article conceptualizes a two-way process of ‘legal deresponsibilization’. On the one hand, legal dysfunctions fail to effectively support the situational and cultural goals of responsibilization. On the other hand, the pursuit of such goals transforms the law in ways that can lead to the deresponsibilization of both corporations and the state. The article suggests that structural reforms are needed to correct this process and the underlying systemic imbalances between the legal promotion of financial interests and that of countervailing values of integrity and accountability.

Original language	English
Article number	paab068
Pages (from-to)	2114-2132
Number of pages	19
Journal	Policing: A Journal of Policy and Practice.
Volume	15
Issue number	4
Early online date	9 Nov 2021
DOIs	https://doi.org/10.1093/police/paab068
Publication status	Published - 23 Jan 2022

Bibliographical note

This is a pre-copyedited, author-produced version of an article accepted for publication in Policing: a Journal of Policy and Practice following peer review. The version of record [insert complete citation information here] is available online at: https://doi.org/10.1093/police/paab068

Copyright © and Moral Rights are retained by the author(s) and/ or other copyright owners. A copy can be downloaded for personal non-commercial research or study, without prior permission or charge. This item cannot be reproduced or quoted extensively from without first obtaining permission in writing from the copyright holder(s). The content must not be changed in any way or sold commercially in any format or medium without the formal permission of the copyright holders.

This document is the author’s post-print version, incorporating any revisions agreed during the peer-review process. Some differences between the published version and this version may remain and you are advised to consult the published version if you wish to cite from it.

Keywords

Corruption
Business Ethics
Company Law
Criminal Law
Lawmaking
Financial regulation
Banking industry
Financial services
Financial crime
Fraud

ASJC Scopus subject areas

Law

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

Access to Document

10.1093/police/paab068

Post-PrintAccepted author manuscript, 850 KB

Cite this

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title = "The responsibilization paradox: The legal route from deresponsibilization to systemic corruption in the Australian financial sector",

abstract = "Recent corruption scandals suggest that the legal structures developed to responsibilize corporations might paradoxically enable the systematization of corruption across entire industry sectors. This study uses grounded theory methodology to develop a preliminary theoretical model of the correlations between the law, responsibilization, and the causes of systemic corruption. Through a qualitative examination of documental evidence from the case study of the recent Australian banking scandal, this article conceptualizes a two-way process of {\textquoteleft}legal deresponsibilization{\textquoteright}. On the one hand, legal dysfunctions fail to effectively support the situational and cultural goals of responsibilization. On the other hand, the pursuit of such goals transforms the law in ways that can lead to the deresponsibilization of both corporations and the state. The article suggests that structural reforms are needed to correct this process and the underlying systemic imbalances between the legal promotion of financial interests and that of countervailing values of integrity and accountability.",

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note = "This is a pre-copyedited, author-produced version of an article accepted for publication in Policing: a Journal of Policy and Practice following peer review. The version of record [insert complete citation information here] is available online at: https://doi.org/10.1093/police/paab068 Copyright {\textcopyright} and Moral Rights are retained by the author(s) and/ or other copyright owners. A copy can be downloaded for personal non-commercial research or study, without prior permission or charge. This item cannot be reproduced or quoted extensively from without first obtaining permission in writing from the copyright holder(s). The content must not be changed in any way or sold commercially in any format or medium without the formal permission of the copyright holders. This document is the author{\textquoteright}s post-print version, incorporating any revisions agreed during the peer-review process. Some differences between the published version and this version may remain and you are advised to consult the published version if you wish to cite from it. ",

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N2 - Recent corruption scandals suggest that the legal structures developed to responsibilize corporations might paradoxically enable the systematization of corruption across entire industry sectors. This study uses grounded theory methodology to develop a preliminary theoretical model of the correlations between the law, responsibilization, and the causes of systemic corruption. Through a qualitative examination of documental evidence from the case study of the recent Australian banking scandal, this article conceptualizes a two-way process of ‘legal deresponsibilization’. On the one hand, legal dysfunctions fail to effectively support the situational and cultural goals of responsibilization. On the other hand, the pursuit of such goals transforms the law in ways that can lead to the deresponsibilization of both corporations and the state. The article suggests that structural reforms are needed to correct this process and the underlying systemic imbalances between the legal promotion of financial interests and that of countervailing values of integrity and accountability.

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The responsibilization paradox: The legal route from deresponsibilization to systemic corruption in the Australian financial sector

Abstract

Bibliographical note

Keywords

ASJC Scopus subject areas

UN SDGs

Access to Document

Other files and links

Fingerprint

The 38th Cambridge International Symposium on Economic Crime

ESRC Festival of Social Science

University of Adelaide

The Producers of Tax Abuse: The Unintended Consequences of Tax Law Design and What to Do about Them

Foreign Investments, the Rule of Corrupted Law and Transnational Systemic Corruption in Uganda’s Mineral Sector

The Corruption of the Law: The Effects of Lawmaking on Systemic Corruption

Cite this

The responsibilization paradox: The legal route from deresponsibilization to systemic corruption in the Australian financial sector

Abstract

Bibliographical note

Keywords

ASJC Scopus subject areas

UN SDGs

Access to Document

Other files and links

Fingerprint

Activities

The 38th Cambridge International Symposium on Economic Crime

ESRC Festival of Social Science

University of Adelaide

Research output

The Producers of Tax Abuse: The Unintended Consequences of Tax Law Design and What to Do about Them

Foreign Investments, the Rule of Corrupted Law and Transnational Systemic Corruption in Uganda’s Mineral Sector

The Corruption of the Law: The Effects of Lawmaking on Systemic Corruption

Cite this