Professional Documents
Culture Documents
White-collar crimes
The white-collar crimes that lead major companies
to collapse usually begin with seemingly
minorethical violations that spiral into something
much bigger.
The question of what motivates smart and talented
people to commit fraud is fascinating, and is the
subject of a new paper by Dr. Muel Kaptein of the
Rotterdam School Of Management.
Tunnel vision
Tunnel vision
Setting and achieving goals is important,
but single-minded focus on them can
blind people to ethical concerns.
When Enron offered large bonuses to
employees for bringing in sales, they
became so focused on that goal that
they forgot to make sure they were
profitable or moral. We all know how that
ended.
Time pressure
Time pressure
In a study, a group of theology students were told
to preach the story of the good Samaritan, then
walk to another building where they'd be filmed.
Along the way, they encountered a man in visible
distress.
When given ample time, almost all helped. When
they were deliberately let out late, only 63 percent
helped. When encouraged to go as fast as
possible, 90 percent ignored the man.
Self-serving bias
Self-serving bias
Few people believe they're average; most
think they're smarter and more
ethical than those around them.
That can lead to feelings of injustice. If
somebody else gets a promotion, it's not
down to their performance and capacity, it
must be something else. Those feelings,
and overestimation of other's biases can
lead to unethical behavior.
Conspicuous consumption
Conspicuous consumption
Extreme wealth, or environments that
reflect it can lead to unethical behavior. For
employees, seeing excessive bonuses or
perks that they don't show leads to feeling
of injustice and jealousy which may lead
them to unethical behavior.
Research by Kathleen Vohs shows that the
mere presence of money makes people
more selfish, as they focus on success and
individual needs over other factors.
Environmental influence
Environmental influence
Employees reflect their environment.
If corruption, major or minor, is a part of
their workplace, they become blind to its
occurrence and its possible costs.
A study incorporating participants from a
variety of countries found that the less
transparent and more corrupt the
participant's country of origin, the more
willing they were to accept or give bribes.
Reactance theory
Reactance theory
Rules are designed to prevent unethical
behavior, but when they're seen as unjust
or excessive they can provoke the opposite
reaction.
This is known as reactance theory. People
resent threats to their freedom, and
they often manifest that resistance by
flouting certain rules.
Obedience to authority
Obedience to authority
Obedience to authority is ingrained in our
culture and workplace. When someone in
a position of authority asks an employee
to do something unethical or illegal, they
can find it difficult to say no.
It's easier to justify bad behavior, and
when people see themselves as an
instrument of another's wishes, they
feel less responsible.
Problematic punishments
Problematic punishments
Attaching fines or other economic
punishments to immoral behavior can
have an undesired effect. Once something
is cast in those terms, it loses its moral
connotation and becomes an entirely
different calculation.
Rather than being about whether
something is right or wrong, it becomes an
economic calculation about the likelihood
of getting caught versus the potential fine.
Escalating commitment
Escalating commitment
Big thieves usually start out as small thieves.
One way such actions become a slippery
slope leading to ever greater misconduct is
the feeling that there's no way out.
This has been seen in recent rogue traders
like Jerome Kerviel and Kweku Adoboli. They
got bonuses for taking big risks, but when
those risks became big losses, they took
even larger risks to try and make up for
them.
Bad communication
Bad communication
Issues of corruption and morality are
often treated as black and white,
wrongdoers are badly punished, and
gray areas are not discussed.
That can lead to an environment
where rather than sounding out
ideas that border on unethical,
people push and test their limits.