Piercing the Corporate Veil: Exploring the lack of accountability and judicial culpability in Multi-level Marketing through the lens of Corporate Organized Irresponsibility

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2024-10-17

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en

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This study explores why MLM corporations continue to create harm and identifies the factors or mechanisms that enable them to evade accountability and prevent judicial culpability. An abductive case study was conducted using COI as the conceptual lens. The study was primarily based on document analysis and earlier research on this subject. By empirically investigating how such an MLM operates within its given context using COI as the conceptual lens, this study contributes by adding empirical insights on how the organizational design and the broader societal context, in the case of MLMs, relate to each other. Second, the study contributes by addressing the importance of the organizational design of MLMs to the adverse consequences of the industry. Third, it refines the conceptual model of COI, by adding decision premises as new sub-dimensions within the COI literature, which amplifies the internal complexity, and ultimately the lack of accountability. In addition, it poses ways forward, for potential research avenues, and better MLM practices.

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Faculteit der Managementwetenschappen