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  • April 2011
  • Article
  • Harvard Business Review

Ethical Breakdowns: Good People often Let Bad Things Happen. Why?

By: Max H. Bazerman and Ann E. Tenbrunsel
  • Format:Print
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Abstract

Companies are spending a great deal of time and money to install codes of ethics, ethics training, compliance programs, and in-house watchdogs. If these efforts worked, the money would be well spent. But unethical behavior appears to be on the rise. The authors observe that even the best-intentioned executives may be unaware of their own or their employees' unethical behavior. Drawing from extensive research on cognitive biases, they offer five reasons for this blindness and suggest what to do about them: (1) Ill-conceived goals may actually encourage negative behavior. Brainstorm unintended consequences when devising them, (2) Motivated blindness makes us overlook unethical behavior when remaining ignorant is in our interest. Root out conflicts of interest, (3) Indirect blindness softens our assessment of unethical behavior when it's carried out by third parties. Take ownership of the implications when you outsource work, (4) The slippery slope mutes our awareness when unethical behavior develops gradually. Be alert for even trivial infractions and investigate them immediately, and (5) Overvaluing outcomes may lead us to give a pass to unethical behavior. Examine good outcomes to ensure they're not driven by unethical tactics.

Keywords

Ethics; Moral Sensibility; Corporate Accountability; Corporate Governance; Leadership; Behavior; Conflict of Interests

Citation

Bazerman, Max H., and Ann E. Tenbrunsel. "Ethical Breakdowns: Good People often Let Bad Things Happen. Why?" Harvard Business Review 89, no. 4 (April 2011).
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About The Author

Max H. Bazerman

Negotiation, Organizations & Markets
→More Publications

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More from the Authors
  • Decision Leadership: Empowering Others to Make Better Choices By: Don A. Moore and Max H. Bazerman
  • Megastudies Improve the Impact of Applied Behavioural Science By: Katherine L. Milkman, Dena Gromet, Hung Ho, Joseph S. Kay, Timothy W. Lee, Pepi Pandiloski, Yeji Park, Aneesh Rai, Max Bazerman, John Beshears, Lauri Bonacorsi, Colin Camerer, Edward Chang, Gretchen Chapman, Robert Cialdini, Hengchen Dai, Lauren Eskreis-Winkler, Ayelet Fishbach, James J. Gross, Samantha Horn, Alexa Hubbard, Steven J. Jones, Dean Karlan, Tim Kautz, Erika Kirgios, Joowon Klusowski, Ariella Kristal, Rahul Ladhania, Jens Ludwig, George Loewenstein, Barbara Mellers, Sendhil Mullainathan, Silvia Saccardo, Jann Spiess, Gaurav Suri, Joachim H. Talloen, Jamie Taxer, Yaacov Trope, Lyle Ungar, Kevin G. Volpp, Ashley Whillans, Jonathan Zinman and Angela L. Duckworth
  • Slice Labs: Creating a Fraud-free Online Insurance Platform By: Amit Goldenberg and Max Bazerman
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