ABSTRACT

Proponents would claim that, so-called clan organizations be actually prevent the rise of isolated subcultures with dysfunctional rationalizations of the type. So far so good, but paradoxically enough, the ambition to avoid conflict could also create a crime generative situation. Fraud, especially managerial fraud, easily becomes unthinkable, literally speaking. The chances are even larger if culture-building projects, aiming at shared values and a high-trust culture, are implemented forcefully from top management, without proper space for internal discussions. A sceptical or cynical attitude towards managers tends to increase with distance and decrease with first-hand experiences. Trust based on common values is an efficient way of coordinating and motivating people in an organization. It is pleasant to work in trustful relationships with others. Cynicism leads to a passive attitude towards fraud and corruption. Authentic trust is a question of conscious risk taking which means that one keep the eyes open and be prepared if red flags appear.