OAM 330 ETHICS IN ORGANIZATIONS WITH COMPLETE VERIFIED SOLUTIONS.

Enron Scandal Ex. Enron shares skyrocket -> then had giant Q3 loses->reveals they overstated earnings->went under formal investigation->files for bankruptcy->finds out Enron employees destroyed company documents->execs found guilty and losses for employees Does power corrupt?Or go in the wrong hands? Is power the cause of unethical behavior? Yes - why? Yes? Evidence: -powerful more likely to cheat on partners, speed -think rules apply to other people Power reduces effects of..... Behavioral Inhibition System -May reduce inhibitions that limit unethical behavior Is power the causer of unethical behavior? No- why? No? Evidence: -powerful more likely to help as bystanders Whistleblowers -higherup in org -higher professional status -higher pay levels -more seniority Power means having ____ ______ on your behavior _____ influences by the situation ______ consistent with your personality fewer; constraints less; more Power reveals.... who people really are Narcissism + Power Narcissism + power = a high-risk combo -they gamble more, drive more aggressively, choose riskier investment strategies -white collar criminals are higher in narcissism Why is narcissism and power a high-risk combo? -overconfidence -sense of personal entitlement, deservingness -myopic focus on rewards -diminshed concern about effects soon others How does narcissism at the top haven trickle down consequences? Creates a culture of self-focus and self-interest Aggressively entry into high-risk markets -trading water -weather derivatives -bandwidth How does unethical behavior in organizations add up? Employee theft and workplace fraud -annual cost to companies $50B Robbery, burglary, larceny, theft, automobile theft Why is unethical behavior so common? 1) Moral justification 2)Social norms & rules 3) Outcome focus 4)Moral inaction Moral justification cognitive strategies and rationalizations used to justify unethical behavior Social norms common normative behavior may not be recognized as unethical - or feel obliged to go along People are more likely to behave unethically cheat when (they think) everyone else is doing it Outcome focus Leads to view that ends (outcomes) justify the means (process) Moral inaction Failure to act even when we recognize unethical behavior Role of anonymity Anonymity of victim -Less concerned and aware of ethical implications when no clear identifiable victim Anonymity of actor -costumes with masks increase likelihood of stealing candy -more cheating in dimly lit rooms -road rage Role of dehumanization Thinking of others as "them" -makes others seem less human, more psychologically distant -easier to rationalize differential treatment Euphemisms Using morally neutral language to reduce perceived harm -lying to a competitor would be "strategic misrepresentation" -civilian casualties = "collateral damage" Sense of equity When employees believe they've been traded unfairly, more likely to: -eat food without paying for it -take company supplies or equipment for personal use -take money from employer without permission Slipper slope Many people cheat just a little - which is easy to justify- but little cheating adds up -Ex. people report 10-20% above actual performance in lab studies Little cheating can require big cheating to cover it up Moral Neglect Failure too recognize the moral implications of our actions -Ex. Coke disappeared from communal fridges within 72 hours -$1 bills remained untouched What are some of the roles of moral justification? Role of anonymity Role of dehumanization Sense of equity Slippery slope Moral neglect Example of social norms -walking behind someone littering increases likelihood that you litter -cheating on taxes - best predictor is whether you think others do it -belief that all companies "cut corners" means yours should too? When ____others cheat, we're more likely to cheat similar CMU Ex. CMU students were more likely to cheat when they saw an in-group (a student wearing a CMU hoodie) cheating vs a, out group (UCLA student) cheating