From caciques and godfathers to second order corruption

The Carwash corruption probe has had a significant impact on what we know about systemic corruption in Brazil. Through the Odebrecht case, it is possible to advance organizational corruption theories by seeing how power has been abused over the years to create a systemic and enduring corruption system. Inspired by grounded theory, we simultaneously collected, codified and analyzed public documents from the plea deals of Odebrecht executives. From the empirical data, it is possible to see how second-order corruption has changed rules and norms in Brazil. We show that this kind of organizational corruption can be achieved by the abuse of relational power. We also demonstrate how second-order corruption is more difficult to combat, it normalizes corruption at a structural level, making it appear commonplace, the norm. Moreover, individually, it makes people rationalize corruption and distance themselves from the act ethically.