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Jennifer Dunn

In: Managing Organizational Deviance

Chapter 2: Why Good Employees Make Unethical Decisions: The Role of Reward Systems, Organizational Culture, and Managerial Oversight

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Why Good Employees Make Unethical Decisions: The Role of Reward Systems, Organizational Culture, and Managerial Oversight
Why good employees make unethical decisions: The role of reward systems, organizational culture, and managerial oversight
JenniferDunnMaurice E.Schweitzer

It was just something we hoped would go away.

—Anonymous Beech-Nut employee

On November 5, 1986, Neils Hoyvald, the president of Beech-Nut, and five others were indicted for knowingly selling sugar water as apple juice concentrate. The evidence was overwhelming, and in 1987 Beech-Nut and its supplier, Universal Juice Company, pleaded guilty and agreed to pay a record £2 million fine and an additional £7.5 million to settle a class-action lawsuit (£2.5 million to retailers and £5 million to customers). Beech-Nut's market share fell by 20%, and overall the company lost £25 million in fines, ...

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