When ethics fail: the theory of organisational survival – a new perspective on ethical boundaries in extreme situations

Purpose This study aims to introduce the theory of organisational survival (TOS), which examines how companies facing imminent existential threats may override ethical and legal norms in pursuit of survival. It seeks to explain the conditions under which unethical organisational behaviours emerge in high-pressure crisis contexts. Design/methodology/approach A qualitative comparative case-based analysis was used to support theory building, focusing on five emblematic cases: Enron, WorldCom, Parmalat, Olympus and various organisations that adopted unethical behaviours under pressure during the COVID-19 pandemic. The analysis integrates classical theories, Legitimacy, Stakeholder and Agency, with the novel concept of perceived existential threat. Findings The case analysis suggests that perceived existential threat may act as a critical trigger for unethical decision-making. When internal ethical mediators are weak or absent, organisations may rationalise decisions that contravene normative standards in the name of continuity. The TOS explains how extreme pressure can weaken ethical judgement and supports a set of theoretical propositions for future empirical testing. Research limitations/implications The study is based on secondary data and does not cover organisations that successfully overcame crises without unethical conduct. Future research could test the model quantitatively across different sectors and geographies. Practical implications The study proposes the ethical survival framework as a practical decision-making tool, helping organisations anticipate ethical risks in crises and reinforcing the value of ethical leadership, governance and cultural resilience. Originality/value This study offers an original theoretical contribution by integrating perceived existential threat into the analysis of unethical organisational behaviour. It provides a novel lens through which to understand decision-making under pressure and supports the development of more ethical and preventive crisis management strategies.