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

Max H. Bazerman; Ann E. Tenbrunsel

Article | Harvard Business Review | April 2011

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

by Max H. Bazerman and Ann E. Tenbrunsel

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;

Format: Print

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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).

Rather than try to follow a set of simple rules (“Don’t lie.” “Don’t cheat.”), leaders and managers seeking to be more ethical should focus on creating the most value for society. This utilitarian view, Bazerman argues, blends philosophical thought with business school pragmatism and can inform a wide variety of managerial decisions in areas including hiring, negotiations, and even time management. Creating value requires that managers confront and overcome the cognitive barriers that prevent them from being as ethical as they would like to be. Just as we rely on System 1 (intuitive) and System 2 (deliberative) thinking, he says, we have parallel systems for ethical decision-making. He proposes strategies for engaging the deliberative one in order to make more-ethical choices. Managers who care about the value they create can influence others throughout the organization by means of the norms and decision-making environment they create.

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

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