Ethical Dilemma  Culture of Deceit

We have noted throughout this chapter, and the text overall, that honesty is generally the best policy in managing OB. But that doesn’t mean honest dealing is always the rule in business.

Studies have found, in fact, that whole industries may encourage dishonesty. In one experiment, subjects were first asked either to think about their professional identities, or to complete a generic survey. They were then asked to report on a series of coin flips; they were told in advance that the more times the coin showed heads, the more money they would make. The bankers who took the generic survey were about as honest in reporting coin flips as people who worked in other fields. The bankers told to think about their professional identities, however, exaggerated how often the coin turned up heads. People in other professions didn’t do so—the tie between professional identity and dishonesty was unique to those who worked in banking. These results are certainly not limited to the banking industry. Many other ways of priming people to think about financial transactions seem to generate more dishonesty. And studies have also found that many individuals feel pressured to engage in dishonest behavior to meet the bottom line. Whenever there is money under consideration, there are powerful motives.

Money motivations are strong in professional sports. For example, the number of top leaders in FIFA (world soccer’s governing body) who were indicted in 2015 suggests that behaving dishonestly has been accepted within FIFA, and covering up for the dishonesty of others has been ­encouraged. Domenico Scala, FIFA’s audit and ­compliance committee chair, noted, “To support the change we need a culture that censures inappropriate behavior and enforces rules vigorously, fairly, and [is] responsive.” There is general consensus that to overcome corruption, those in positions of authority must demonstrate commitment to an ethical culture. As Scala noted, “It is the leaders’ tone that ensures it is embedded at all levels of the organization. This must be honest and communicated with sincerity in both words and actions.” There may well be a tendency to become dishonest when there’s money to be made, so leaders may need to be especially vigilant and communicate clear expectations for ethical behavior.

Fortunately, evidence shows that asking people to focus on relationships and the way they spend their time can actually make them behave more honestly and helpfully. This suggests that a focus on the social consequences of our actions can indeed help to overcome corruption.

What are the negative effects of a culture that encourages dishonesty and corruption on its reputation and employees and why might some organizations push employees to behave in a dishonest or corrupt manner?

Are there personal benefits to corruption that culture can counteract and what actions can you take as a new employee if you are pressured to violate your own ethical standards at work? How might mid-level employees' responses to this question differ from those of more senior managers?