Research Summary
Research Summary
The Transparency of Ethical Behavior
Description
(with Max Bazerman, Karim Kassam, and Neeru Paharia)
This research analyzes how unethical behavior is viewed when performed through an intermediary, especially when there is evidence to suggest the intermediary is not the source of culpability. We find that experimental subjects punish a principle less when an unethical action is performed by an intermediary; moreover, while punishment increases as evidence of the principle’s blameworthiness grows, subjects never punish as much as they would had the principle personally acted in the same unethical way. Thus our results show why it might be profitable, although unethical, for public relations-sensitive firms to hire an intermediary to staff their organization with low paid employees or to sell a drug at the monopolist price rather than undertake either endeavor themselves. We offer implications for the need to require greater transparency.
(Some recent examples include the pharmaceutical story from above, the culpability of American companies who may be indirectly encouraging pollution in China, and what happend to Harvard when they did not hire an intermediary.)
This research analyzes how unethical behavior is viewed when performed through an intermediary, especially when there is evidence to suggest the intermediary is not the source of culpability. We find that experimental subjects punish a principle less when an unethical action is performed by an intermediary; moreover, while punishment increases as evidence of the principle’s blameworthiness grows, subjects never punish as much as they would had the principle personally acted in the same unethical way. Thus our results show why it might be profitable, although unethical, for public relations-sensitive firms to hire an intermediary to staff their organization with low paid employees or to sell a drug at the monopolist price rather than undertake either endeavor themselves. We offer implications for the need to require greater transparency.
(Some recent examples include the pharmaceutical story from above, the culpability of American companies who may be indirectly encouraging pollution in China, and what happend to Harvard when they did not hire an intermediary.)