Very insightful on how this corruption develops:

"How can a group hold a worldview so at odds with the wider culture and not appear to be greatly conflicted by it? The answer may lie in the distinction between particularism and universalism. An individual develops social identities specific to the social domains, groups and roles – and accompanying subcultures – that he or she occupies (e.g. manager, mother, parishioner, sports fan). [...]

In the case of corruption, this myopia means that an otherwise ethically-minded individual may forsake universalistic or dominant norms about ethical behavior in favor of particularistic behaviors that favor his or her group at the expense of outsiders. [...]

This tendency to always put the ingroup above all others clearly paves the way for collective corruption."

CS Lewis has a speech about the ingroups and corruption. His thesis is that the mere desire to be "in" is the greatest driver of immoral behavior:

"To nine out of ten of you the choice which could lead to scoundrelism will come, when it does come, in no very dramatic colours. Obviously bad men, obviously threatening or bribing, will almost certainly not appear. Over a drink, or a cup of coffee, disguised as triviality and sandwiched between two jokes, from the lips of a man, or woman, whom you have recently been getting to know rather better and whom you hope to know better still—just at the moment when you are most anxious not to appear crude, or naïf or a prig—the hint will come. It will be the hint of something which the public, the ignorant, romantic public, would never understand: something which even the outsiders in your own profession are apt to make a fuss about: but something, says your new friend, which “we”—and at the word “we” you try not to blush for mere pleasure—something “we always do.”"

https://www.lewissociety.org/innerring/

I grew up with a very strong sentimental sense of moral universalism. I loved Beethoven's Ode to Joy and the romantic idea of universal brotherhood.

But as I bank years in the adult world, as a worker and a neighbor, I've been progressively disillusioned. I don't find universalism to be a common viewpoint. I've found it to be very rare that anyone wants to be my "brother" or "sister". And sometimes those that seem to, end up being exploitative, callous, or strictly fair-weather.

I'm not resentful or anything. I have a happy family and a few close-ish friends, and life feels full. But I can understand how the loneliness and coldness of the world makes people more particularist. People may think: "if the world acts like it owes me nothing, then what do I owe the world?"

This is a good explanation of the Irish Machine in Chicago, corrupt white governments in the south, and Somalian welfare scams in Minnesota. It also explains the endemic corruption in tribal or clan-oriented societies like Afghanistan.

Conversely, radical universalist regimes—even bad ones like the Taliban—can cut down on corruption. https://www.americanprogress.org/article/tackling-corruption.... It’s possible that the low levels of corruption in New England, compared to the rest of the country, is the legacy of the radically universalist Puritans.

The author cites Arendt a fair bit, whose claim to fame was that entirely ordinary people could become voluntary instruments of atrocity.

I think the belief of ordinary people most likely to dispose them to atrocity is that of prioritizing the ingroup. Once we believe that the members of one's own family, or company, or country, carry more moral value than others, we're doomed to a descent limited only by our ability to make these world-worsening trades.

When I was a child, my dad would sometimes engage in small acts of corruption to please me or my brother. Taking somebody else's spot, telling white lies to get more than his share of a rationed good, that sort of thing. It never sat right with me. "Family first" has a very ominous ring to me.

The situation in which people exchange favors within their mutually beneficial personal networks seems to be the basic and typical way things function. It’s actually remarkable that we are able to resist this tendency and normalize fair and impartial institutions.

The brain actually has specific neurological system that compartmentalise reasoning contexts in different social contexts, so we operate according to different sets of assumptions and rules of behaviour and reasoning in different kinds of situations.

I enjoyed this paper, and there's innumerable things that could be said about ingroup-outgroup dynamics and corruption.

In my personal experiences with corruption with organizations, ingroup membership often becomes increasingly narrowly defined, and defined in such a way as to benefit a certain group of individuals at the expense of others. The underlying rationale is a narcissistic entitlement or rationalization for why one person or small group of people is deserving of disproportiate benefits or flexibility at the expense of others. It starts with some kind of distorted egocentric schema about others in a more distal way, and then becomes increasingly strict and more proximal. Narcissistic egocentrism is at the core; it only manifests more weakly at first, and then becomes stronger. The ingroup boundaries never stop shrinking, because there always has to be some justification for why that particular group — which was never really defined by the initial ingroup boundaries, the ingroup was only a proxy for themselves — is more deserving than others.

It’s like they worked at my last workplace