ETHICAL DILEMMACulture of Deceit

We have noted throughout the text that honesty is generally the best policy for managing organizational behavior. Butthatdoesn't mean honest dealing isalwaystherulein business.

Studies have found, in fact, that the whole industry may encourage dishonesty. In one experiment, subjects werefirst asked either to think about their professional identitiesorto complete a genericsurvey.They were then asked to report onaseries of coin flips; they were told inadvancethat the more times thecoinshowed heads,the more money they would make. The bankers who took the generic survey were about as honest in reporting coinflips as people who worked in other fields. The bankers told them to thinkabouttheir professional identities, however, exaggerated how often the coin turned up heads. People inotherprofessions didn't do sothe tie between professionalidentity 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 thinkaboutfinancial transactions seem to generate more dishonesty. And studies have also found that many individuals feel pressured to engageindishonest behavior to meet the bottom line. Money provides powerful motives for dishonesty.

Money motivationsarestrong in professional sports.Forexample,the number of top leaders in FIFA (FdrationInternationale deFootballAssociation, the international governing bodyofassociation football [soccer]. futsal,andbeach soccer) whowereindicted in 2015 suggests that behaving dishonestly has been accepted within FIFA and covering up for the dishonesty of othershasbeen encouraged. Domenico Scala, FIFA'sauditand compliancecommitteechair, noted, "To support the change we need a culture that censures inappropriate behavior andenforcesrules vigorously, fairly, and [is]responsive."There is a consensus that to overcome corruption, thosein positions of authority must demonstrate commitment toanethical culture. As Scala noted, "It isthe leaders' tone that ensures it is embedded at all levels of theorganization.This must be honest and communicated withsincerityin 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 forethicalbehavior.

Fortunately, evidence shows thatasking people to focus on relationshipsandthe way they spend their time can make them behave more honestly andhelpfully. This suggests that a focus on thesocialconsequences of our actions can indeed help to overcome corruption.

Questions

16-10. What are the negative effects of a culture thatencouragesdishonesty and corruption onanorganization's reputation and its employees?

16-11. Why might some organizations push employees to behave in a dishonest or corrupt manner? Are there personal benefits to corruption that organizationalculture can counteract?

16-12. What actions canyoutake asanew employee ifyou arepressured to violate your own ethical standards at work? How might midlevel employees' responses to this question differfromthose of more senior managers?