In the egoism philosophical framework, it is contended that when organizations focus on their long-term interests, they, without knowing it, advance the interests of society as a whole, which is perceived as ethical. In this research, this premise is challenged using data collected from the social media outlets of 29 randomly selected companies from the 2013 Fortune 500 list. Through qualitative comparative analysis, the exact opposite was found. In fact, the organizations that focused on striving for their long-term (...) success are perceived as unethical. It was also found that socially responsible organizations are perceived as ethical whereas those that misrepresent their positions and attempt to influence the decisions of others are perceived as unethical. Implications for managers are discussed, and future directions are suggested. (shrink)

This paper is designed to do four things. First, the paper discusses the importance of groupthink in contributing to unethical behavior. Second, the paper discribes how groupthink contributed to unethical behavior in three organizations (Beech-Nut, E. F. Hutton, and Salomon Brothers). Third, symptoms of groupthink (such as arrogance, overcommitment, and excessive loyalty to the group) will be presented along with two methods for programming conflict (devil's advocate and dialectic) into an organization and group's decisions. Finally, (...) the paper introduces some prescriptions for reducing the probability of groupthink. (shrink)

We suggest that understanding unethical behavior in organizations involves understanding how people view themselves and their relationships with others, a concept known as self-construal. Across multiple studies, employing both field and laboratory settings, we examine the impact of three dimensions of self-construal (independent, relational, and collective) on unethical behavior. Our results show that higher levels of relational self-construal relate negatively to unethical behavior. We also find that differences in levels of relational self for (...) men and women mediate gender differences in unethical behavior. We discuss both the theoretical and practical implications of these findings. (shrink)

The social scientific study of ethical-unethical behavior in work organizations is in an early stage of development. This paper discusses some of the problems of conducting social scientific research in this area and explores the potential contribution of experimental research approaches. Both laboratory and field experimentation allow the investigator to test theory-based hypotheses and to study causal relations. Examples are provided of investigations that have applied these methods to the study of business ethics.

The purpose of this study is to investigate the influence of the dimensions of the theory of planned behavior, gender and course majors on unethical behavior intentions among Generation Y undergraduates. The sample of this study comprises 245 undergraduates from a private higher education institution (PHEI) in Malaysia. The instrument of this study is developed based on concepts developed from extant literature. Reliability and validity is accessed using Cronbach’s Alpha and Exploratory Factor Analysis respectively. Social desirability bias (...) was monitored utilizing concepts adapted from Phillips and Clancy (American Journal of Sociology, 77(5), 921–940, 1972 ). Multiple Linear Regression and Independent sample T-tests were used for hypotheses testing. As a whole, results indicate that egoism, utilitarianism and magnitude of consequences exerted significant influence on unethical behavior intentions. Peer influence was not significant. In terms of gender, unethical intentions among males were influenced by egoism and peer influenced while females by utilitarianism and magnitude of consequences. Business majors did not consider magnitude of consequences significant in unethical behavior intentions. Ethical values form the fundamentals of ethical culture within organizations and a business environment which is increasingly based on self-regulation. Ethics is an essential part of the holistic personal development of future business leaders. As such, by understanding ethical attitudes and perceptions, we can draw implications for the further enhancements of teaching and learning of Business Ethics in academia as well as the development of ethical culture in the Malaysian context. Educators, parents and society also need to realise their role in the ethical development of these future Malaysian leaders. The framework of this study could be extended to actual behaviors, adult samples and also account for religiosity and age. This study utilizes the established dimensions and framework of the Theory of Planned Behavior in bridging the gap of research in unethical behavior within the context of a PHEI in Malaysia. (shrink)

Scholars have paid so much academic attention to UPB in the past decade. However, there is lacking a quantitative review to uncover the relationship between UPB and its antecedents. To address this, we make a meta-analytic review about UPB. Specifically, we propose a theoretical framework of antecedents of UPB and test it using meta-analysis technology (k = 67, n = 20,957). We found moral disengagement, organizational identification, identification with supervisors, leader UPB, ethical judgments, psychological entitlement, transformational leadership, and (...) job satisfaction are positively related to UPB. Moral identity and taking responsibility are negatively related to UPB. Besides, ethical leadership, abusive supervision, and authoritarian leadership have double-edged sword effects on UPB. For ethical leadership, it increases UPB via LMX, on the other hand, it decreases UPB via moral disengagement. For abusive supervision and authoritarian leadership, they increase UPB via moral disengagement and decrease UPB via LMX meanwhile. We discuss the results of the current meta-analysis and put some future research directions. (shrink)

The uncovering of several recent corporate scandals has brought to light unethical pro-organizational behavior (UPB) in organizations. A growing body of research has provided insights into employees’ UPB and its antecedents. However, our understanding of leader UPB and its effects remains limited. In this study, we develop and test a theoretical model that explains employees’ responses to their leader UPB. By drawing on the theory of motivated reasoning and the trust literature, we posit that, in general, (...) leader UPB is linked to unfavorable responses from employees such as a lower perception of leaders’ trustworthiness, which, in turn, reduces the citizenship behaviors of employees. However, our model also shows that these effects do not emerge automatically but depend on a crucial boundary condition—followers’ outcome favorability, or the extent to which followers personally benefit from leader UPB. Specifically, we contend that negative responses to leader UPB arise mainly when followers’ outcome favorability is low but decrease significantly when followers’ outcome favorability is high. The results of two multi-wave, multi-source field studies support our hypothesized model. These findings offer a new, instrumental perspective on followers’ responses to unethical leader behaviors, with valuable theoretical and practical implications. (shrink)

Every time another corporate scandal captures media headlines, the ‘bad apple vs. bad barrel’ discussion starts anew. Yet this debate overlooks the influence of the broader societal context on organizational behavior. In this article, we argue that misbehaviors of organizations (the ‘barrels’) and their members (the ‘apples’) cannot be addressed properly without a clear understanding of their broader context (the ‘larder’). Whereas previously, a strong societal framework dampened the practical application of the Homo economicus concept (business actors as (...) perfectly rational and egocentric utility-maximizing agents without any moral concern), specialization, individualization and globalization led to a business world disembedded from broader societal norms. This emancipated business world promotes a literal interpretation of Homo economicus among business organizations and their members. Consequently, we argue that the first step toward ‘healthier’ apples and barrels is to sanitize the larder, that is, adapt the framework in which organizations and their members evolve. (shrink)

This paper aims to integrate insights from psychoanalytic theory into business ethics research on the sources of ethical failures within organizations. We particularly draw from the analysis of sources and outcomes of neurotic processes that are part of human development, as described by the psychoanalyst Karen Horney and more recently by Manfred Kets de Vries; we interpret their insights from a stakeholder theory perspective. Business ethics research seems to have overlooked how “neurotic management styles” could be the antecedents (...) of unethical behavior within organizations. After showing the connection between five managerial neuroses and the corresponding potential ethical failures within organizations that have been already identified within business ethics research, we suggest three organizational strategies to counteract these failures. First, we argue that managers should pay greater attention at the complexity of human motivation, avoiding the simplistic view of compliance‐based approaches. Second, we discuss the importance of developing a conversation around values within organizations, enabling healthy individual growth and limiting the emergence of neurotic processes. Finally, we discuss the role of the business ethicist in facilitating such a process, suggesting a parallel between the role of the business ethicist and that of the psychoanalytic therapist. (shrink)

Despite the long history of career research in the literature (Guerrier, 1987; Siu et al., 1997), researchers have largely neglected the dark sides of the antecedents and consequences of career amb...

Many prescriptions offered in the literature for enhancing creativity and innovation in organizations raise ethical concerns, yet creativity researchers rarely discuss ethics. We identify four categories of behavior proffered as a means for fostering creativity that raise serious ethical issues: breaking rules and standard operating procedures; challenging authority and avoiding tradition; creating conflict, competition and stress; and taking risks. We discuss each category, briefly identifying research supporting these prescriptions for fostering creativity and then we delve into ethical issues (...) associated with engaging in the prescribed behavior. These four rubrics illustrate ethical issues that need to be incorporated into the creativity and innovation literature. Recommendations for how organizations can respond to the ethical issues are offered based on practices of exemplary organizations and theories of organizational ethics. A research agenda for empirically investigating the ethical impact these four categories of behavior have on organizations concludes the article. (shrink)

This paper aims to integrate insights from psychoanalytic theory into business ethics research on the sources of ethical failures within organizations. We particularly draw from the analysis of sources and outcomes of neurotic processes that are part of human development, as described by the psychoanalyst Karen Horney and more recently by Manfred Kets de Vries; we interpret their insights from a stakeholder theory perspective. Business ethics research seems to have overlooked how “neurotic management styles” could be the antecedents (...) of unethical behavior within organizations. After showing the connection between five managerial neuroses and the corresponding potential ethical failures within organizations that have been already identified within business ethics research, we suggest three organizational strategies to counteract these failures. First, we argue that managers should pay greater attention at the complexity of human motivation, avoiding the simplistic view of compliance‐based approaches. Second, we discuss the importance of developing a conversation around values within organizations, enabling healthy individual growth and limiting the emergence of neurotic processes. Finally, we discuss the role of the business ethicist in facilitating such a process, suggesting a parallel between the role of the business ethicist and that of the psychoanalytic therapist. (shrink)

While a corporate ethics program is expected to reduce employees’ unethical behavior, understanding the effects of the ethics program elements on reducing the unethical behavior is a crucial issue. This study aims to explore how a corporate ethics program with multiple control elements, including punishment, monitoring, internal reporting, code of ethics, ethics support service and ethics training, influence employees’ threat appraisal process, coping appraisal process and unethical behavior at workplaces. The data to verify proposed (...) research hypotheses were collected by administering questionnaire survey on four autonomous government organizations in Bangladesh. Research findings show that only punishment and monitoring have significantly negative relationships with unethical behavior. Monitoring and internal reporting have significantly positive relationships with threat appraisal. The code of ethics, ethics support service and ethics training are associated positively with coping appraisal. The mediation results reveal that coping appraisal mediates the relationship between ethics program elements and unethical behavior; but the mediation effects of threat appraisal are not significant. This study provides valuable insights into how a corporate ethics program with multiple control elements reduces employees’ unethical behavior as well as how employees’ threat and coping appraisal processes are related to the corporate ethics program and unethical behavior in organizations. (shrink)

Since the conceptualization of unethical pro-organizational behavior ten years ago, scholarly interest in exploring this phenomenon has multiplied. Given a burgeoning body of empirical research, a review of unethical pro-organizational behavior literature is warranted. This study, therefore, systematically reviews the extant literature on unethical pro-organizational behavior and presents a comprehensive theory-based review of the past developments in this field. We classify previous studies based on their underlying theoretical perspectives and discuss the antecedents and (...) consequences of unethical pro-organizational behavior in work context. We also explicate the boundary conditions under which the influence of these antecedents gets accentuated or alleviated. Overall, this study synthesizes past knowledge to elucidate why, how, and when unethical pro-organizational behavior unfolds in the workplace. Finally, the gaps in the extant theorization are identified and an agenda for future research is proposed. (shrink)

Research in the organizational sciences has tended to portray prosocial behavior as an unqualified positive outcome that should be encouraged in organizations. However, only recently, have researchers begun to acknowledge prosocial behaviors that help maintain an organization’s positive image in ways that violate ethical norms. Recent scandals, including Volkswagen’s emissions scandal and Penn State’s child sex abuse scandal, point to the need for research on the individual factors and situational conditions that shape the emergence of these unethical (...) pro-organizational behaviors. Drawing on trait activation theory, we argue that the “dark” trait of Machiavellianism should make individuals more willing to engage in UPB. Further, we argue that this willingness will be augmented when Machiavellians hold bottom-line-mentality climate perceptions, or the perception that ethical standards matter less than organizational performance. Using data from 170 U.S. employees, results suggested that Machiavellians are more willing to engage in UPB, but that BLMCPs may not affect their motivation to engage in UPB. We discuss the study’s theoretical and practical implications, as well as avenues for research. (shrink)

In this research, we examine the relationship between employee psychological entitlement and employee willingness to engage in unethical pro-organizational behavior. We hypothesize that a high level of PE—the belief that one should receive desirable treatment irrespective of whether it is deserved—will increase the prevalence of this particular type of unethical behavior. We argue that, driven by self-interest and the desire to look good in the eyes of others, highly entitled employees may be more willing to engage (...) in UPB when their personal goals are aligned with those of their organizations. Support for this proposition was found in Study 1, which demonstrates that organizational identification accentuates the link between PE and the willingness to engage in UPB. Study 2 builds on these findings by examining a number of mediating variables that shed light on why PE leads to a greater willingness among employees to engage in UPB. Furthermore, we explored the differential effects of PE on UPB compared to counterproductive work behavior. We found support for our moderated mediation model, which shows that status striving and moral disengagement fully mediate the link between PE and UPB. PE was also linked to CWB and was fully mediated by perceptions of organizational justice and moral disengagement. (shrink)

We present a theoretical rationale and supporting studies revealing how unethical leader behavior fosters an unethical climate within workgroups that increases member turnover intentions and malfeasance. Drawing on the attraction–selection–attrition model of organizational behavior, we propose a selective attrition effect whereby unethical leader behavior results in the retention of group members who are more comfortable with dishonesty and, consequently, more likely to engage in unethical behavior toward their group. In two experiments, exposure (...) to unethical leader behavior increased group members’ likelihood of choosing to leave the group. Members who chose to remain in a group with an unethical leader were more likely than those who chose to leave to cheat their group in a subsequent task. A two time-period survey replicated these findings and identified psychological distress as the mechanism driving group members’ turnover intentions. This research extends our understanding of the complex relationships between unethical leadership and follower turnover intentions, psychological distress, and malfeasance. We contribute to the behavioral ethics literature by identifying a previously underappreciated form of selective attrition that produces internal costs to groups and organizations, independent of reputational consequences and whether the unethicality is publicized. (shrink)

Research by academics, professional organizations, and businesses on ethics in the workplace often relies on surveys that ask employees to report how frequently they have observed others engaging in unethical behavior. But what do these frequencies in observer-reports say about the frequencies of committed unethical behavior? This paper is the first to address this question by empirically exploring the relationship between observer- and self-reports. Our survey research among the Swiss working population shows that for all (...) 37 different forms of unethical behavior investigated, observer-reports show higher frequencies than self-reports. Ratios of observer- to self-reports vary substantially among these forms, ranging from 1.46 for improperly gathering competitor’s confidential information to 6.4 for engaging in (sexual) harassment or creating a hostile work environment. The results indicate that researchers should not assume that the frequency in self-reports can generally be approximated by the frequency in observer-reports. Four possible explanations are presented for the differences in ratios, with recommendations for future research. (shrink)

This study explores the relationship between individual birthplace [rural birthplace (RB) and urban birthplace (UB)] and consumer unethical behavior (CUB). As a result, CUB is verified to closely relate to individual birthplace, and those new urban residents with RB are found to behave more ethically than the patrimonial urban residents with UB in CUB4 (“no harm/no foul”). This study also finds that the differentiation of CUB between two categories of consumers is correlated with the personal moral ideology or (...) Machiavellianism (MA) functioning with varying degree, which idealism ideology is a main variable impacting on the unethical behaviors of the members born in the rural subculture while MA for those in the urban one. Additionally, the “no harm/no foul” (CUB4) and the “actively benefiting from a questionable action” (CUB3) in the list of CUBs are found to be more efficient in discriminating the two groups than the other two kinds, the “passively benefiting at the expense of others” (CUB2) and the “actively benefiting from an illegal activity” (CUB1). The results shed light on the roles of individual birthplace in influencing CUB and contribute to a better understanding on the effects of subculture on CUB. (shrink)

Can exposure to media portrayals of human violence impact an individual’s ethical decision making at work? Ethical business failures can result in enormous financial losses to individuals, businesses, and society. We study how exposure to human violence—especially through media—can cause individuals to make less ethical decisions. We present three experiments, each showing a causal link between exposure to human violence and unethical business behavior, and show this relationship is mediated by an increase in individual hostility levels as a (...) result of exposure to violence. Using observational data, we then provide evidence suggesting that this relationship extends beyond the context of our experiments, showing that companies headquartered in locations marked by greater human violence are more likely to fraudulently misstate their financial statements and exhibit more aggressive financial reporting. Combined, our results suggest that exposure to human violence has significant and real effects on an individual’s ethical decision making. (shrink)

The purpose of this study is to investigate the effect of job attitudes on unethical behavior. Until now, job-related attitudes have been relatively ignored in the research area of ethical behavior and thus we suggest job dedication and organizational commitment as individual antecedents.Second, we examine the relationship between ethical climate and unethical behavior. Finally, this study explores the moderating effect of job relate burnout on the relationship of focal variables in this study.Job burnout was (...) composed of two dimensions: disengagement and exhaustion. Empirical study of this research used 204 employees’ questionnaires and hierarchical moderated regression analysis to test our hypotheses. Research findings are as follows. First, the results revealed that job dedication and organizational commitment had significantly negative impact on the unethical behavior. Therefore hypothesis 1and 2 were supported.Second, the negative relationship between ethical climate and unethical behavior was revealed statistically, and supported hypothesis 3.Third, according to the empirical results, job burnout partly moderated the relationship between focal variables of this study and unethical behavior. In particular, a higher level of disengagement decreases the negative impact of job dedication on unethical behavior, whereas a higher level of exhaustion decreases the negative effect of ethical climate on unethical behavior. Thus hypothesis 4 partially supported.Finally, we discussed some research implications and limitations of this study. (shrink)

In this study, we propose and test a model of the effects of organizational ethical culture and organizational architecture on the perceived unethical behavior of employees towards customers. This study also examines the relationship between organizational ethical culture and moral acceptability judgment, hypothesizing that moral acceptability judgment is an important stage in the ethical decision-making process. Based on a field study in one of the largest financial institutions in Europe, we found that organizational ethical culture was significantly related (...) to the perceived frequency of unethical behavior towards customers and to the moral acceptability judgment of this type of unethical behavior. No support was found for the claim that features of organizational architecture are associated with the perceived frequency of unethical behavior towards customers. This is the first study to document the differential effects of organizational architecture and organizational ethical culture on perceived unethical behavior of employees towards customers, in wholesale banking. Implications for managers and future research are discussed. (shrink)

In this paper, we examine the relationships between three of the Big 5 personality traits and willingness to justify unethical behavior. We also consider the moderating relationship of four of the GLOBE cultural dimensions on the above relationship. We tested our propositions on a sample of 38,655 individuals from 23 different countries obtained from the latest data available from the World Values Survey Group’s survey. We found that conscientiousness and agreeableness were both negatively associated with willingness to justify (...) unethical behavior. We also conducted Hierarchical Linear Modeling and found significant interaction effects of selected GLOBE cultural dimensions on the relationships between personality traits and willingness to justify unethical behavior. We provide managerial implications of our findings, as well as suggestions for future research. (shrink)

This paper identifies brand age as an important factor in consumers’ brand evaluations following unethical firm behavior. In two experiments, we assess the effect of brand age on three types of brand evaluations: perceived quality, brand credibility, and behavioral intentions following a brand crisis. The findings suggest that disclosing an older brand’s age can not only improve consumers’ brand evaluations in general, but can also provide a buffering effect when the firm is involved in unethical behavior. (...) Moreover, the relationship between brand age and consumers’ post-crisis intentions is mediated by perceived brand credibility. By exploring consumers’ attitudes following the most common firm response strategies, this research also identifies a boundary condition of the mitigating effect of brand age. Several significant implications for practitioners are discussed. (shrink)

Unfortunately, business is often associated with unethical behavior. While research has offered a number of explanations for why business might encourage unethical behavior, we argue that how a person frames a situation may provide important insight. Drawing on the decision frame literature, the goal of the current research is to identify the differences in cognitive processing associated with two decision frames dominant in the business ethics literature—business and ethical—and, with that knowledge, examine ways to mitigate the (...) detrimental influence of frame on unethical behavior. We first demonstrate the causal link between frame and misrepresentation, and then identify several differences in cognitive processing—cost–benefit analyses, concern for others, and construal level—that distinguish business and ethical frames, and investigate their effects on misrepresentation. In our final set of studies, we demonstrate that the influence of these frames on misrepresentation can be altered by manipulating these cognitive processes, both mitigating and exacerbating a decision maker’s engagement in misrepresentation. We conclude by summarizing our findings and their potential impact on unethical behavior more broadly. (shrink)

A business code of ethics is widely regarded as an important instrument to curb unethical behavior in the workplace. However, little is empirically known about the factors that determine the impact of a code on unethical behavior. Besides the existence of a code, this article studies five determining factors: the content of the code, the frequency of communication activities surrounding the code, the quality of the communication activities, and the embedment of the code in the organization (...) by senior management as well as local management. The full model explains 32% of observed unethical behavior while the explanatory value of a code alone is very modest. The study shows when codes are effective, and even when they become counter effective. (shrink)

Do free will beliefs influence moral judgments? Answers to this question from theoretical and empirical perspectives are controversial. This study attempted to replicate past research and offer theoretical insights by analyzing World Values Survey data from residents of 46 countries (n = 65,111 persons). Corroborating experimental findings, free will beliefs predicted intolerance of unethical behaviors and support for severe criminal punishment. Further, the link between free will beliefs and intolerance of unethical behavior was moderated by variations in (...) countries’ institutional integrity, defined as the degree to which countries had accountable, corruption-free public sectors. Free will beliefs predicted intolerance of unethical behaviors for residents of countries with high and moderate institutional integrity, but this correlation was not seen for countries with low institutional integrity. Free will beliefs predicted support for criminal punishment regardless of countries’ institutional integrity. Results were robust across different operationalizations of institutional integrity and with or without statistical control variables. (shrink)

In light of continuing corporate scandals, the study of ethical leadership remains an important area of research which helps to understand the antecedents and consequences of ethical behavior in organizations. The present study investigates how social distance influences ethical leadership evaluations, and how in turn ethical leadership evaluations affect leader-member exchange (LMX) after a leader's moral transgression. Based on construal level theory, we propose that higher social distance will lead to more severe evaluations of immoral behavior (...) and therefore entail lower ethical leadership ratings. Moreover, we hypothesize that ethical leadership will positively affect LMX. Participants read a scenario describing a moral situation in which a leader, who was presented in either high or low social distance, behaves unethically toward an employee. We tested our predictions using a structural equation modeling approach. As expected, participants in the high social distance condition judged leaders more harshly (i. e., they gave lower ethical leadership ratings) than in the low social distance condition. Thus, social distance moderated the extent to which leaders are perceived as ethical leaders after moral transgression. Moreover, in accordance with our proposition, ethical leadership ratings had a positive influence on LMX. (shrink)

In economic unethical decision-making experiments, one important methodological investigation is what types of contexts should be used to frame the instructions. Within the experimental economics community, using neutral-context instructions instead of loaded-context instructions is the mainstream practice. Because the loaded contexts may impact behavior in an unpredictable manner and therefore, put experimental control at risk. Nevertheless, using the loaded-context instructions could be advantageous in several ways. A properly framed context can help to facilitate learning and gain ecological validity. (...) The challenge is whether we can identify when and why the loaded context may alter behavior. In this paper, we aim to test if being familiar with a loaded context can systematically influence unethical decisions in a bribery game. We conduct a laboratory bribery game experiment with three different treatments: the neutral-context treatment, the familiar-context treatment, and the unfamiliar-context treatment. Using the neutral-context treatment as a benchmark, we find that participants in the familiar-context treatment express stronger negative attitudes toward corruption. Attitudes toward unethical behavior are the same in the neutral-context treatment and the unfamiliar-context treatment. Behaviorally, the participants in the familiar-context treatment are much less likely to engage in corrupt activities. The neutral-context treatment and the unfamiliar-context treatment produce the same behavioral outcome. (shrink)

A significant body of research has emerged in order to better understand unethical behavior at work and how gender plays a role in the process. In this study, we look to add to this literature by exploring how perpetrator gender influences reactions to distinct types of unethicality. Rather than viewing unethical behavior as a unitary construct, where all forms of lying, cheating, and stealing are the same, we integrate theories and concepts from the criminal justice and (...) moral psychology literatures to categorize certain unethical behaviors as either impulsive or premeditated. Given the agentic nature of premeditated unethical behavior, we draw from role congruity theory to predict that women will be punished more severely than men for their role incongruous actions. Impulsive unethical behavior, on the other hand, will be less likely to elicit perceptions of congruity or incongruity, leading to less of a gender effect. Results from three studies sampling both undergraduates and working adults in the United States, Singapore, and South Korea showed that participants were more likely to associate premeditated unethical behavior with a male perpetrator because it was seen as less feminine, and female perpetrators who engaged in premeditated unethical behavior received more severe punishment than male perpetrators due to the perceived role incongruity of their actions. Implications are discussed as well as possible limitations and directions for future research. (shrink)

We investigated the relationship between guilt proneness and counterproductive work behavior (CWB) using a diverse sample of employed adults working in a variety of different industries at various levels in their organizations. CWB refers to behaviors that harm or are intended to harm organizations or people in organizations. Guilt proneness is a personality trait characterized by a predisposition to experience negative feelings about personal wrongdoing. CWB was engaged in less frequently by individuals high in guilt proneness (...) compared to those low in guilt proneness, controlling for other known correlates of CWB. CWB was also predicted by gender, age, intention to turnover, interpersonal conflict at work, and negative affect at work. Given the detrimental impact of CWB on people and organizations, it may be wise for employers to consider guilt proneness when making hiring decisions. (shrink)

Unethical pro-organizational behavior is one of the core factors that affect organizational development. Although enterprises and researchers have done a lot of work, a quantitative and systematic assessment of unethical pro-organizational behavior research is still lacking, this review conducts a bibliometric analysis to describe the characteristics and trends of unethical pro-organizational behavior research in business and management, such as publication trend analysis, co-citation analysis, keywords co-occurrence analysis, and citation burst analysis. The results show that (...) 89 articles and 4,523 references from 49 journals contributed by 254 authors are identified. The number of publications has increased significantly since 2019. The China and United States are the most productive country. Umphress E and Yam C are the most influential authors. “Journal of Business Ethics and Frontiers in Psychology” are the most influential journal, 26 words in 516 keywords constitute the strongest set of terms available, Keyword co-occurrence analysis found ethical decision-making, the measurement, and impact of unethical pro-organizational behavior, the antecedents of ethical leadership are worthy and prospective potential trends. These findings provide a systematically, transparently, and visually reviewed the landscape and development process of unethical pro-organizational behavior research, which may help researchers and practitioners to understand unethical pro-organizational behavior in business management and provide a new perspective for future research. (shrink)

The role of artificial intelligence (AI) in organizations has fundamentally changed from performing routine tasks to supervising human employees. While prior studies focused on normative perceptions of such AI supervisors, employees’ behavioral reactions towards them remained largely unexplored. We draw from theories on AI aversion and appreciation to tackle the ambiguity within this field and investigate if and why employees might adhere to unethical instructions either from a human or an AI supervisor. In addition, we identify employee characteristics (...) affecting this relationship. To inform this debate, we conducted four experiments (total N = 1701) and used two state-of-the-art machine learning algorithms (causal forest and transformers). We consistently find that employees adhere less to unethical instructions from an AI than a human supervisor. Further, individual characteristics such as the tendency to comply without dissent or age constitute important boundary conditions. In addition, Study 1 identified that the perceived mind of the supervisors serves as an explanatory mechanism. We generate further insights on this mediator via experimental manipulations in two pre-registered studies by manipulating mind between two AI (Study 2) and two human supervisors (Study 3). In (pre-registered) Study 4, we replicate the resistance to unethical instructions from AI supervisors in an incentivized experimental setting. Our research generates insights into the ‘black box’ of human behavior toward AI supervisors, particularly in the moral domain, and showcases how organizational researchers can use machine learning methods as powerful tools to complement experimental research for the generation of more fine-grained insights. (shrink)

Scandals in companies such as Enron have been a source of great concern in the last decade. The events that led to a global financial crisis in 2008 have heightened this concern. How does one account for executive behaviors that led to such a crisis? This article argues that a conjunction of motive, means, and opportunity creates ‘an ethical hazard’ making questionable executive decisions more probable. It then suggests that corporate unethical behavior can be minimized by creating a (...) process to identify and remove such ethical hazards, and by appointing an ‘ethical hazards marshal.’. (shrink)

The name of the second author was incorrect in the initial online publication. The original article has been corrected.

The huge amounts spent on store security and crime prevention worldwide, not only costs international businesses, but also amounts to a hidden tax on those law-binding consumers who bear higher prices. Most previous research has focused on shoplifting and ignored many other ways in which consumers cheat businesses. Using a hybrid of both qualitative research and survey approaches in four countries, an index of 37 activities was developed to examine consumers’ unethical activities across UK, US, France, and Austria. The (...) findings indicate that around three quarters of consumers in all four countries can be classified as heavy offenders for these minor cheats. The paper argues that government agencies, marketers, and retailers should adopt more pro-active preventative approaches, rather than reactive loss limitation measures to combat unethical behavior. (shrink)

Both individuals and organizations can engage in unethical behaviors. Across six experiments, we examine how people’s ethical judgments are affected by whether the agent engaging in unethical action is a person or an organization. People believe organizations are more unethical than individuals, even when both agents engage in identical behaviors. Using both mediation and moderation analytical approaches, we find that this effect is explained by people’s beliefs that organizations produce more harm when behaving unethically, (...) even when they do not, as well as people’s perceptions that organizations are relatively more blameworthy agents. We then explore how these judgments manifest across different kinds of organizations as well as how they produce discrepant punishments following ethically questionable business activities. Although society and the law often treat individuals and organizations as equivalent, people believe for-profit organizations’ behaviors are less ethical than identical individual behaviors. We discuss the ethical implications of this discrepancy, as well as additional implications concerning reputation management, punishment, and signaling in organizational contexts. (shrink)

While top-down descriptors have received much attention in explaining corruption, we develop a grassroots model to describe structural factors that may influence the emergence and spread of an individual’s (un)ethical behavior within organizations. We begin with a discussion of the economics justification of the benefits of competition, a rationale used by firms to adopt structural aides such as the ‹stacking’ practice that was implemented at Enron. We discuss and develop an individual-level theory of planned behavior, then extend (...) it to the dyadic level in an internally competitive organization, and finally extend the dyadic model to the social network. We apply social network theory to predict favorable and unfavorable conditions for the emergence and diffusion of an intraorganizational instance of unethical behavior and find that network conditions favoring the suppression of the emergence of unethical behavior also promote its diffusion. For illustrative purposes, we utilize examples from Enron’s internally competitive structure to embed our arguments in a real world context and bring reality to our theorizing. Implications for both researchers and managers are discussed. (shrink)

Findings from prior research show that there is a general tendency to discipline top sales performers more leniently than poor sales performers for engaging in identical forms of unethical selling behavior. In this study, the authors attempt to uncover moderating factors that could override this general tendency and bring about more equal discipline for top sales performers and poor sales performers. Surprisingly, none were found. A company policy stating that the behavior in question was unacceptable nor a (...) repeated pattern of unethical behavior offset the general tendency to treat top sales performers more leniently than poor sales performers. In an attempt to dig deeper to find a significant moderating effect, two follow-up experiments were conducted. In the first follow-up experiment, a specific training program designed to communicate top management's desire to treat ethical matters equally based on the severity of the act had no effect on equalizing the discipline between top sales performers and poor sales performers. In the second follow-up experiment, a stronger company policy that specified a prescribed level of punishment also failed to equalize the discipline. A superior sales performance record appears to induce more lenient forms of discipline, despite the presence of other factors and managerial actions that are specifically instituted to produce more equal forms of discipline. The answer to the question posed in the article title is, "apparently very strong!". (shrink)

ABSTRACT:We call for business ethics scholars to focus more attention on how individuals and organizations respond in the aftermath of unethical behavior. Insight into this issue is drawn from restorative justice, which moves beyond traditional approaches that emphasize retribution or rehabilitation to include restoring victims and other affected parties, reintegrating offenders, and facilitating moral repair in the workplace. We review relevant theoretical and empirical work in restorative justice and develop a conceptual model that highlights how this perspective (...) can enhance theory and empirical research in business ethics. We specifically identify topic areas that we believe have particular promise for business ethics scholars to pursue. We close our paper by discussing implications of the restorative justice approach for practicing managers. (shrink)

There is a possibility that the ethical problems that have recently surfaced at General Electric, E. F. Hutton and General Dynamics are not simple anomalies, but the direct result of corporate pressures on individual managers. The author looks at the nature of these pressures, which come from the strategic planning systems in use at most large corporations, and concludes that the current emphasis upon improvements in competitive positioning have led many managers to take actions that are directly contrary to the (...) moral standards, either explicit or implied, of their organizations. (shrink)

Unethical behavior in organizations has garnered more and more attention in the last decades but most of the scholarly work has used a static approach relying on methodological individualism and a mechanistic worldview when studying this topic. The process of moral disengagement and organizational culture have been linked to the prevalence of unethical behavior earlier, but this paper uses a complexity-informed systems perspective to explore the dynamic relationship of these concepts and aims to improve our (...) understanding of the often unnoticeable, step-by-step process through which organizational cultures can become conducive to unethical behavior. Organizations are conceptualized as complex adaptive systems in which transformative and stabilizing processes based on feedback loops take place continuously. It is discussed how these processes can lead to a phase transition driving organizations towards a state where unethical behavior is the general norm. The process is illustrated through real-life examples. (shrink)

Previous research on the detrimental consequences of employees' unethical pro-organizational behaviors (UPB) has been based mainly on cognitive dissonance theory. The authors suggest that moral disengagement theory and cognitive dissonance theory can be used to explain the negative effects of UPB. We conducted two studies, including a scenario experiment and a survey, to test the mediating roles of moral identity and moral disengagement and the moderating role of performance pressure in the relationship between UPB and organizational deviance. The results (...) revealed that UPB impacts organizational deviance through moral identity and moral disengagement and that distinct psychological reactions are differentially moderated by performance pressure. Employees who face low levels of performance pressure are more receptive to the effects of moral identity; in contrast, employees who face high levels of performance pressure are more receptive to the effects of moral disengagement. The theoretical and managerial implications of this research are discussed. (shrink)

While a number of studies are being done on ethical leadership, little is known about the role of ethical ideology and organizational justice in the relation of the ethical leadership behavior and individual behaviors such as work engagement and organizational misbehavior has tended to be neglected in ethics literature. This study examines the mediating effects of organizational justice on the relations of ethical leadership, work engagement and organizational misbehavior. Also, it investigates the moderating effect of ethical ideology on the (...) relationships among these variables. It proposes that managers’ ethical values and organizational members’ ethical perspectives such as absolutism, exceptionism, situationism, and subjectivism have the potential to be agents of virtue within the organizations. Employee attributions and emotional reactions to the unethical behavior of their leaders are important factors on individual behavior outcomes. So, in this study it is hypothesized that ethical leadership behavior affects organizational justice perception and this, respectively, affects organizational members’ work engagement and organizational misbehavior. It is also hypothesized that ethical ideology would moderate the relationship between the ethical leadership and organizational justice. Results indicate that ethical leadership has both direct and indirect influence on work engagement and organizational misbehavior. Finally, practical implications are discussed, and suggestions for the future research are made. (shrink)

In recent years, the adverse implications of organizational identification (OID) have received significant attention in the field of organizational behavior research, particularly as it is considered a critical factor in unethical pro-organizational behavior (UPB). Nevertheless, the findings of previous studies are inconsistent. To explain these discrepancies, we performed a meta-analysis of 54 independent studies from January 2010 to April 2023, comprising a total of 14,836 samples, to investigate the impact of OID on UPB and the moderating effects (...) of cultural context. The results of our study demonstrated that individualism, power distance, masculinity, uncertainty avoidance, and indulgence play moderating roles in the OID – UPB relationship. This study makes noteworthy theoretical and practical contributions and lays the foundation for future research. (shrink)

Unethical pro-organizational behaviors are unethical, but prosocially-motivated, acts intended to benefit one’s organization. This study examines the extent to which employees are willing to perform UPB to benefit a liked leader. Based on social exchange theory, we hypothesized that LMX would mediate the association of interpersonal justice with UPB willingness. Moral identity and positive reciprocity beliefs were examined as moderators. Higher LMX was significantly and positively related to UPB willingness, and the indirect effect of interpersonal justice on UPB (...) via LMX was significant and positive. These findings suggest that LMX and interpersonal justice could have a previously-unexplored dark side. Moral identity had a negative direct relationship with UPB, but it did not moderate the relationship of LMX with UPB. Thus, LMX facilitates UPB willingness even when employees are high in moral identity. LMX is associated with many positive outcomes, but our results show that high LMX may also increase willingness to perform unethical behaviors to benefit one’s leader. These results contribute to the literature by identifying a potential negative outcome associated with high LMX. (shrink)

There have been spectacular villains in business that have received a great deal of attention in recent years, such as Elizabeth Holmes, Adam Neumann, and the Sackler family. All of them were supported to varying extents by others who were integral to their rise and fall, what business psychologist Max Bazerman calls "a cast of complicitors." Did those others know the extent they were contributing to unethical behaviour? How responsible were they for such behavior? In Profiles in Complicity, (...) Bazerman explores the role that others play in supporting unethical behavior in workplaces and organizations, through a host of examples such as those above, and offers a guide for readers to examine the roles they themselves may have in enabling wrongdoing and the responsibility we all have to keep harm-doers from destroying our organizations and our society. The book synthesizes scholarship from a range of disciplines, including psychology, philosophy, economics, and sociology, and provides useful approaches to thinking about all levels of complicity. Bazerman starts with a set of chapters exploring various profiles on differnet types of complicity, ranging from those who are knowing, true partners of wrong-doers to those who unknowingly benefit from systemic priviledge, or those who are overly loyal to an organization. Many readers will have witnessed people engaging in behaviors they believed were wrong, behaviors they would never engage in themselves, and then had to discern whether and how to take action. Profiles in Complicity will help readers understand the psychology of complicity, avoid being complicit in wrongdoing, and become better employees, citizens, and human beings in the process. The book will also offer direct guidance for organizations seeking to avoid ethical lapses, beyond simply looking for bad apples. (shrink)

Employee misconduct is prevalent in organizations and may be counterproductive in social and material terms. It is thus important to better understand how misconduct is construed by employees and the factors that determine its ethical acceptability in specific cases. This study explores attitudes towards unethical and minor deviant behaviours by examining the degree of acquiescence towards them in a sample of employees. Based on previous studies it was hypothesized that both organizational commitment and job satisfaction would be negatively (...) related to the acceptance of such behaviours in organizational settings. Results show that there is a relationship between the degree of acquiescence and organizational commitment and a more modest relationship with job satisfaction. They further indicate that organizational tenure impacts very significantly on the degree of acceptance. Although differences were found for age, neither gender nor organizational variables were found to be significant. (shrink)

Using practicing sales managers as subjects, the results indicate that personal characteristics of gender may be used in making disciplinary judgments following episodes of a particular type of unacceptable work behavior, an unethical selling act. As hypothesized, saleswomen were disciplined less severely while salesmen were disciplined more severely. However, female sales managers did not administer discriminatory discipline. The discipline administered by female sales managers to salesmen and to saleswomen was quite uniform. Furthermore, the discipline administered by female sales (...) managers to salesmen and saleswomen was quite close to the discipline administered by male sales managers to salesmen. The only outlying level of discipline administered in the study was more leniency shown by male sales managers toward saleswomen. (shrink)

The study examines whether (a) personal and organizational values differ in private and public sectors, and (b) personal values and value congruence -the extent of matching between personal and organizational values -influence unethical practices and work behavior. Three hundred and forty middle-level managers from four manufacturing organizations rated 22 values as guiding principles to them to identify their personal values. In order to index organizational values, 56 top-level managers of the same organizations rated how important such (...) values were to the organization. Results revealed that the important shared values among managers of private and public sectors are product quality and customer service. Congruence between personal and organizational values is found to be higher in the private sector compared to the public sector. Middle-level managers in the private sector shared the organizational values more than the managers in the public sector. Irrespective of the type of organizations and age of managers, personal values more potently and consistently decreased unethical practices and increased work behavior compared to value congruence. Hiring managers emphasizing personal values can demote unethical practices and promote work behavior. (shrink)