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Power corrupts. Bosses have power, and therefore they tend to corrupt. To survive, corrupted bosses must either hide their corruption or be ruthless. Most would do both, and legalise corruption.
Power corrupts
Taking advantage of one's position is natural. Therefore, all of those in power have a tendency to corrupt. Only scruples prevents them from corruption. The more of their peers corrupt, the more one would.
Criticism is inevitable
When those in power corrupt, criticism is inevitable. This could come from those who want to take power. But it is more likely to come from people who value justice and fair play.
Secrecy ensue
A weak boss will easily be overthrown. Criticism helps to overthrow them.
Secrecy may help a cunning boss to prevent criticism.
Therefore, a cunning, corrupted boss tend to reduce transparency in the organization.
(Tell-tell signs: If the practice of an organisation suddenly becomes opaque, it may signal corruption.)
Defence against fraud
An unscrupulous boss obtains power for personal gains. Through self reflection, corrupted bosses tend to assume that others want to do the same. Therefore, after gaining power, they tend to tighten the rules to defend against possible frauds.
(Tell-tell signs: if an organisation suddenly tightens its grips on possible frauds, it may signal frauds by the boss.)
Only the ruthless bosses survive
Subordinates tend to criticise corrupted policies, or reveal them to others. A boss who fails to conceal corruption risk will inevitably be criticized. A weak boss will be removed, one way or the other. To survive, a boss must be able to suppress criticism. This can be done through punishment of those who speak out; get rid of them whenever possible. Discrimination by exclusion is a common tactic. Isolating the dissidents is necessary. The Soviet Union's technique sometimes works: to label the dissidents mentally; this will discredit what they say.
(Tell-tell signs: if the most productive staff seem to have little representation in an organisation, or hit hard for trivial incidents, that may signal the implementation of a ruthless tactic by a corrupted boss.)
Hand-picking managers, regardless of their ability
Corrupted bosses hate transparency. In order to ensure that the management is opaque, a corrupted boss will hand pick his managers. The only quality that matters is obedience. Ability comes as a bonus, but is secondary.
(Tell-tell signs: if incompetent people are appointed to key positions, this may signal corruption.)
Legalised corruption
Through change of policy, a ruthless boss can legalise corruption. Since it is legal, there is no danger of "being caught". It is also more difficult to get rid of. Since everybody close to the power are hand-picked, they are guarantee to collude.
(Tell-tell signs: if the management team is very close to each other, that may signal lack of confidence and corruption)
[End]
Related: "Managing the process"
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