The Scarcity-Munificence Component of Organizational Environments and The Commission of Illegal Acts

Abstract

Barry M. Staw and Eugene Szwajkowski This study examines the relation between the scarcitymunificence of organizational environments and the occurrence of illegal acts. It is hypothesized that the less munificent the organization's environment; the more effort the organization will exert to obtain resources from that environment and, thus, the more likely it will engage in legally questionable activities. Analyses of company and industry data for firms cited for unfair market practices and restraint of trade activities provide support for the hypothesis.