The Effects of Victim Anonymity on Unethical Behavior

We theorize that victim anonymity is an important factor in ethical decision making, such that actors engage in more self-interested and unethical behaviors toward anonymous victims than they do toward identifiable victims. Three experiments provided empirical support for this argument. In Study 1, participants withheld more life-saving products from anonymous than from identifiable victims. In Study 2, participants allocated a sum of payment more unfairly when interacting with an anonymous than with an identifiable partner. Finally, in Study 3, participants cheated more from an anonymous than from an identifiable person. Anticipated guilt fully mediated these effects in all three studies. Taken together, our research suggests that anonymous victims may be more likely to incur unethical treatment, which could explain many unethical business behaviors.     

The Effects of Transgressor Sex on Judgments of Unethical Behavior

This study investigated the effect of gender stereotypes on evaluator judgments of unethical behavior. Subjects were working adults who completed a mailed survey in which they evaluated unethical behavior depicted in written scenarios. Sex of the transgressor in the scenarios was manipulated. Both quantitative and qualitative analyses indicated that there are no stable differences in evaluations of men and women across scenarios. These results suggest that evaluators do not hold different standards of ethical behavior for men and women, they do not make different causal attributions for the behavior of men and women, nor do evaluators treat men and women differently when an ethical transgression has been committed.     

The Influence of Unethical Peer Behavior on Observers’ Unethical Behavior: A Social Cognitive Perspective

The relationship between unethical peer behavior and observers?? unethical behavior traditionally has been examined from a social learning perspective. We employ two additional theoretical lenses, social identity theory and social comparison theory, each of which offers additional insight into this relationship. Data from 600 undergraduate business students in two universities provide support for all the three perspectives, suggesting that unethical behavior is influenced by social learning, social identity, and social comparison processes. Implications for managers and future research are discussed.     

Investigating the Effects of Moral Disengagement and Participation on Unethical Work Behavior

With massive corruption uncovered in numerous recent corporate scandals, investigating psychological processes underlying unethical behavior among employees has become a critical area of research for organizational scientists. This article seeks to explain why people engage in deceptive and fraudulent activities by focusing on the use of moral-disengagement tactics or rationalizations to justify egregious actions at work. In addition, participation in goal-setting is argued to attenuate the relationship between moral disengagement and unethical behavior. Across two studies, a lab simulation and field survey, a measure of moral disengagement was developed for use with working adults. The hypothesized main and interactive effects of moral disengagement, participation, and unethical behavior were tested and largely confirmed.     

Self-Construal and Unethical Behavior

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.     

The Role of Pluralistic Ignorance in the Perception of Unethical Behavior

Is there really an ethical crisis? We propose that the situation is not as bad as many would have us believe. We have attempted to present an alternative explanation for some earlier reports of an ethical crisis. This has resulted in a number of research propositions. We are optimistic that there are, in spite of reports to the contrary, an overwhelming majority of ethical people populating our business community.     

The Relationship Between Ethical Leadership and Unethical Pro-Organizational Behavior: Linear or Curvilinear Effects?

In this study, we examine the nature of the relationship between ethical leadership and unethical pro-organizational behavior (UPB), defined as unethical behavior conducted by employees with the aim of benefiting their organization, and whether the strength of the relationship differs between subordinates experiencing high and low identification with supervisor. Based on three-wave survey data obtained from 239 public sector employees in China, we find that ethical leadership has an inverted u-shaped (curvilinear) relationship with UPB. As the level of ethical leadership increases from low to moderate, UPB increases; as the level of ethical leadership increases from moderate to high, UPB decreases. Further, we find that the strength of this inverted u-curve relationship differs between subordinates with high and low identification with supervisor. That is to say, the inverted u-shaped relationship between ethical leadership and UPB was stronger when subordinates experienced high levels of identification with supervisor. The theoretical and managerial implications of our findings for understanding how to manage UPB in an organizational context are discussed.     

The Relationship between Unethical Behavior and the Dimensions of the Ethical Climate Questionnaire

This study examined the relationship between unethical employee behavior and the dimensions of the Ethical Climate Questionnaire (ECQ). In order to explore the relationship between the dimensions of the ECQ and unethical behavior, the factor structure of five previously identified empirical models and the hypothesized nine-dimension model for the ECQ was tested with a confirmatory factor analysis. The analysis revealed that the hypothesized nine-dimension model provided as good or even better fit to the data than the five empirically derived models. Therefore, the nine-dimensional model was used to examine the criterion-related validity of the ECQ. The results demonstrated that the nine ethical climate dimensions were correlated with some of the unethical behaviors examined in this study, but not others. However, the results clearly demonstrated that most of the ethical climate dimensions were significantly related to an aggregate measure of unethical behavior. It was suggested that these results might account for the differences in previous studies on the criterion-related validity of the ECQ. The results also replicated a previous report that the association between unethical behavior and ethical climate is stronger in organizations that do not have a code of ethics. Finally, a difference was observed in the ethical climates for organizations with a code of ethics and organizations without a code of ethics.     

Measuring Unethical Consumer Behavior Across Four Countries

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.     

Identifying Factors Which May Influence Unethical Behavior

Unethical behavior occurs and can be explained by a number of theoretical approaches. This article is a report of a survey concerned with determining the factors which may influence unethical behavior. The respondents identified three factors (Grade Instrumentality, Attributing Blame Factor, and Negative Dispositional Factor) underlying the commission of unethical activities. An integration of the theories and the factors yielded a number of suggestions which may impact the propensity to engage in unethical behavior.     

Effects of Organizational Embeddedness on Unethical Pro-organizational Behavior: Roles of Perceived Status and Ethical Leadership

Journal of Business Ethics - This study examines why individuals who are deeply embedded in the organization may engage in unethical pro-organizational behavior (UPB). Drawing from social identity...     

Toward Effective Codes: Testing the Relationship with Unethical Behavior

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.     

Willingness to Report Unethical Behavior in Exit Surveys

The present study examined MBA respondents' potential willingness to discuss different unethical practices or behaviors via an employee exit survey. Factor analyses showed that the unethical issues could be categorized into five factors: illegal corporate activities, unfair management actions directed toward employees, illegal human resource activities, small scale dishonesty, and mistreatment of organizational constituencies with varying degrees of willingness to talk about these practices. The respondents' willingness to discuss each of the five factors differed statistically. Discussion centered upon means of using such an ethics exit survey and evaluating the utility of its information.     

Making decisions affecting oneself versus others: The effect of interpersonal closeness and Dark Triad traits

Actions that financially benefit one person may present risk to another person. For example, the payment incentives of portfolio managers and investors are often asymmetrical such that actions that benefit a portfolio manager can pose financial risk to clients. Despite the presence and potential harm of these asymmetries, few have addressed the question of who exploits these asymmetries and how to mitigate potential harm. Our study examined the effect of selfish personality traits (the Dark Triad) and interpersonal bonding on decision-making for the self, another person, and another person with under reward asymmetry present. Results demonstrated that individuals higher in narcissism and psychopathy made risky decisions for themselves. However, when reward asymmetries were present, all three Dark Triad traits were associated with making riskier decisions for another person in order to benefit the self. There was also a significant interaction between interpersonal closeness generated through bonding and psychopathy such that bonding made the decision-making processes of those high in psychopathy less risky for others. These findings have implications for how different individuals with different relationships make self and other-based financial decisions, and how those decisions change when rewards are asymmetrical.     

Corruption and Unethical Behavior: Report on a Set of Danish Guidelines

Corruption is defined as private individuals or enterprises who misuse public resources for private power and/or political gains. They do so through abusing public officials whose behavior deviates from the formal government rules of conduct. Ethical behavior is defined as individuals or enterprises adhering to a non-corrupt work or business practice. A review of the academic literature is conducted drawing on perspectives from the political, economic, and anthropological sciences. Insights from a Danish research program are reported on. This program identifies five different actions for dealing with corruption: (1) no action; (2) withdrawals from markets; (3) decentralized decision-making process; (4) establishment of an anti-corruption code; and (5) mutual commitment through integrity pact. The following aspects of ethical behavior should be regulated through an anti-corruption code: the company vis-à-vis political parties; gifts and entertainment expenses; political campaign contributions; and policy against small-scale corruption. Directions for future research are considered including the role of international organizations and multinational companies in fighting corruption and fostering ethical behavior; the role of countries and their governments; and the management systems.     

The Effects of Individual Difference Factors on the Acceptability of Ethical and Unethical Workplace Behaviors

The purpose of this paper was to determine whether the individual attributes of locus of control, gender, major in college and years of job experience affect the acceptability of certain workplace behaviors. A total of 198 college students of a mid-sized southeastern university formed the sample for this study. Locus of control, gender and years of job experience were found to have some affect on whether an individual considered a certain behavior acceptable or unacceptable.     

Unethical and Fraudulent Financial Reporting: Applying the Theory of Planned Behavior

This research applies the theory of planned behavior to corporate managers’ decision making as it relates to fraudulent financial reporting. Specifically, we conducted two studies to examine the effects of attitude, subjective norm and perceived control on managers’ decisions to violate generally accepted accounting principles (GAAP) in order to meet an earnings target and receive an annual bonus. The results suggest that the theory of planned behavior predicts whether managers’ decisions are ethical or unethical. These findings are relevant to corporate leaders who seek to improve ethical work climates of organizations and to many regulators, accountants, corporate governance officials and investors.