Moral disengagement is the process by which individuals mitigate the consequences of their own violations of moral standards. Although MD is understood to be co-determined by culture norms, no study has yet explored the extent to which MD applied to safety at work fosters safety violations, nor the role of organizational culture as a predictor of JS-MD. The current study seeks to address this gap in the literature by examining individual- and organizational-level factors that explain why employees fail to report (...) workplace accidents. We tested a latent variable structural model positing organizational culture typologies as predictors of JS-MD, which in turn is expected to mediate the relationship with accident underreporting. Using data from 1033 employees in 28 Italian organizations, findings suggest that bureaucratic safety culture was related to lower levels of JS-MD, whereas technocratic safety culture was related to greater JS-MD. In turn, JS-MD positively predicted employee accident underreporting and fully mediated the relationship between culture and underreporting. Theoretical and practical implications are discussed in light of the increasing focus on underreporting as well as the adverse individual and organizational consequences of failing to report workplace accidents. (shrink)

The aim of the paper is to explore and assess the process of responsibility, decoupling point, and disengagement of moral responsibility, in combination with business sustainability in supply chains. The research is based on a qualitative approach consisting of two multifaceted case studies, each including multiple case companies and different empirical research characteristics, and a review of BSus in supply chain literature. The case studies apply moral disengagement to propose how moral responsibility can deteriorate in supply chains, and the literature (...) review identifies elements of BSus in supply chain management. The contribution of this paper is to compare these two research streams and evaluate the efficacy of the concepts proposed in the case studies. Through this study, BSus gains an entirely different and complementary toolkit which should facilitate further and more effective research in SCM. The theory of MDis also provides a foundation for reinforcing explanatory and prescriptive aspects of ‘best practices’ in the SCM literature. The findings also establish a basis for organizing and monitoring supply chains so as to improve BSus efforts. Considering moral responsibility as a flow this research explains why and how certain practices may impede BSus efforts in supply chains. Original and/or innovative outcomes include explanatory and prescriptive insights that emerge from a combination of empirical findings from two case studies, including seven companies and a framework for improving BSus management in supply chains, based on a typology of moral disengagement. (shrink)

The evaluation of new theories and pedagogical approaches to business ethics is an essential task for ethicists. This is true not only for empirical and applied evaluation but also for metatheoretical evaluation. However, while there is increasing interest in the practical utility and empirical testing of ethical theories, there has been little systematic evaluation of how new theories relate to existing ones or what novel conceptual characteristics they might contribute. This paper aims to address this lack by discussing the role (...) of metatheorising in assessing new approaches to ethics. The approach is illustrated through evaluating a new pedagogy and curriculum for ethics education called Giving Voice to Values (GVV). Our method involves identifying a number of metatheoretical lenses from existing reviews of ethical theories and applying these to examine GVV’s conceptual elements. Although GVV has been explicitly presented as a pedagogy and teaching curriculum, we argue that it has the potential to contribute significantly to the development of ethical theory. We discuss the general implications of this metatheoretical method of evaluation for new approaches to business ethics and for GVV and its future development. (shrink)

Organizational deviance represents a costly behavior to many organizations. While some precursors to deviance have been identified, we hope to add to our predictive capabilities. Utilizing social cognitive theory and psychological contract theory as explanatory concepts, we explore the role of moral disengagement and turnover intentions, testing our hypotheses using two samples: a sample of 44 nurses from a hospital system in the Southwestern United States (Study 1), and a sample of 52 working adults collected from an online survey system (...) (Study 2). Results strongly supported our hypotheses in both samples, indicating that the self-regulatory deactivation inherent in moral disengagement led to increased organizational deviance; effects that were much more pronounced when turnover intentions were high. Our findings support the increased role of cognition in determining behavior when environmental pressures stemming from the psychological contract have been altered, leading to a number of theoretical and practical implications, particularly in industries with high turnover rates. (shrink)

Time theft is a costly burden on organizations. However, there is limited knowledge about why time theft occurs. To advance this line of research, this conceptual paper looks at the association between organizational injustice and time theft from identity, moral, and equity perspectives. This paper proposes that organizational injustice triggers time theft through decreased organizational identification. It also proposes that moral disengagement and equity sensitivity moderate this process such that organizational identification is less likely to mediate among employees with high (...) moral disengagement and more likely to mediate among employees who are equity sensitives and entitleds. (shrink)

Unethical employee behavior (UEB), an important organizational phenomenon, is dynamic and multi-faceted. Recent renewed interest in the role of emotion in ethical decision-making (EDM) suggests that unethical behaviors are neither always rationally derived nor deliberately undertaken. This study explores how to integrate the conscious and nonconscious dimensions of unethical decision-making. By broadening the scope of inquiry, we explore how integral affect—the emotion tied to anticipated decision outcomes for the employee engaging in misconduct—can shed light on UEB. We review related literature (...) on affect and EDM and propose a model in which we assert that at a decision point, an employee experiences multiple integral affects that are either persuasive or dissuasive toward UEB. We further posit that among these integral affects, a dominant integral affect (DIA) emerges, determining the nature and direction of unethical behavior. In addition, our model considers the role of affective residue and the influence of other factors, such as incidental affect, disposition, context, and retrospection, to derive propositions. Our DIA model can help managers gain a comprehensive understanding of how affect, characterized by its locus (self or other orientation) and valence (enhancing or harming), determines the characteristics of UEB. (shrink)

ABSTRACT To date, over forty-seven studies have examined the antecedents and outcomes of Moral Disengagement mechanisms used to rationalize unethical behavior. However, none have examined its relationship with mindful awareness, either as a trait or set of everyday applications. Our study demonstrates that trait mindfulness is negatively correlated with all MD mechanisms. The tendency to apply decentering and relaxation is positively correlated with all MD mechanisms while stopping and reappraisal trend toward positive relationships and savoring shows no correlation. We discuss (...) potential reasons for these disparate relationships and implications for mindfulness-based interventions in the workplace. (shrink)

We examine the effects of leader–member exchange differentiation on team members’ outcomes by using team moral disengagement as a psychological mechanism mediating this relationship and LMX differentiation bases moderating the relationship. Analysis of multilevel data collected from 289 frontline employees organized into 76 finance-related customer service teams shows that LMX differentiation significantly reduced team moral disengagement only when the performance basis was high, and that the negative relationship between LMX differentiation and team moral disengagement was significant only when the personal (...) liking basis was low. Furthermore, we found that the LMX bases moderated the indirect effect of LMX differentiation on team members’ outcomes through team moral disengagement. The findings advance team moral disengagement as a novel mechanism for cross-level relationship between LMX differentiation and team members’ outcomes at the individual level, and project differentiation bases as a condition under which LMX differentiation unpacks the reasons for team members’ favorable or unfavorable responses. They reveal LMX differentiation as a complex and multifaceted phenomenon, whose essence can only be understood if examined from multiple levels. We also contribute to the literature by revealing the cognitive pathway through which LMX differentiation may be associated with team members outcomes. (shrink)

Drawing on the perspective of causal reasoning and the social cognitive theory of moral thought and action, this study explores the mechanisms underlying the association between exposure to exploitative leadership and employee workplace deviance. The results of a time-lagged survey conducted in China reveal that exposure to exploitative leadership can evoke a moral justification process that leads to increased employee organizational and interpersonal deviance. A tendency toward hostile attribution bias reinforces the direct link between exploitative leadership and moral justification and (...) the indirect effects of exploitative leadership on employee organizational and interpersonal deviance, via moral justification. The theoretical and practical implications of this study are discussed and potential directions for future studies are proposed. (shrink)

Archival research reports that managers often use the FIN 48 uncertain tax liability accrual to manage earnings. To assess solutions to this problem, we deconstruct the ethical and psychological reasoning that leads to FIN 48 opportunistic behavior. Hence, we employ a survey of seasoned accounting managers to assess the influences of cynicism, two measures of moral disengagement, and pressure from a CFO on the propensity to engage in FIN 48 earnings management. Specifically, we manipulate the influence of the study scenario (...) supervisory CFO as either a latent bully or a transformational leader. While the CFO bully main effect condition enhances FIN 48 earnings management, the CFO transformational leader condition interacts with less cynical accounting managers to reduce FIN 48 earnings management. We also find that both dispositional trait and situational state moral disengagement factors independently mediate the relationship between the cynicism model antecedent and FIN 48 earnings management. Collectively, study findings provide implications for both theory and practice. (shrink)

Counterproductive work behavior is one of the most common behavioral decisions of employees in the workplace that negatively impacts the sustainable development of enterprises. Previous studies have shown that individuals make CWB decisions for different reasons. Some individuals engage in CWB due to cognitive factors, whereas others engage in CWB in response to leadership behaviors. The conservation of resources theory holds that individuals have the tendency to preserve, protect and acquire resources. When experiencing the loss of resources, individuals will show (...) irrational and aggressive behaviors in order to regain resources. When obtaining resources, individuals’ tension and pressure will be relieved. To maintain or continue obtaining resources, individuals will show more positive work attitudes and behaviors. Therefore, using the COR theory as the main theoretical framework, this study explores a serial mediation model between family supportive leadership and CWB through work-family conflict and moral disengagement, moderated by personal life attribution. A three-wave survey of 251 medical workers from three hospitals found that family supportive leadership can reduce employees’ perceived work-family conflict, which leads to less moral disengagement, resulting in lower CWB. Personal life attribution strengthens the negative indirect effect of family supportive leadership on CWB by reinforcing the negative association between family supportive leadership and work-family conflict. This study uses the COR theory to explore the mechanism and boundary conditions of family supportive leadership and CWB from the perspective of negative work-family relationship, which enrichis the research content of existing theories. Moreover, this study has important guiding significance for managers to take effective measures to reduce CWB. (shrink)

We bring the distinct and complementary existentialist perspectives of Jean-Paul Sartre and Simone de Beauvoir to bear on the phenomenon of moral disengagement in managerial decision-making. Existentialist thinking is a rich source of insight on this phenomenon, because—as we demonstrate—the concept of moral disengagement overlaps significantly with the notion of ‘a consciousness in bad faith’ in Sartre’s writing, and the notion of ‘not willing oneself free’ in De Beauvoir’s writing. These concepts play a critical role in existentialist ethics, and thus (...) existentialists carefully deliberated the phenomenon that these concepts aim to illuminate. Rather than being motivated by self-interest as implied by the bulk of extant empirical work on moral disengagement, existentialist perspectives suggest that moral disengagement can instead be motivated by an overwhelming sense of responsibility towards diverse others. From an existentialist perspective, the temptation to morally disengage will not only be felt by individuals that have a strong, trait-like propensity for moral disengagement, but by managers in general. This temptation is likely to be felt in the specific context of right vs. right dilemmas, which have up to now rarely been studied by moral disengagement scholars. Even though existentialist thought paints the problem of moral disengagement as more widespread and entrenched in the human condition, it also suggests ways of preventing moral disengagement. In arguing for these preventative approaches, we make careful distinctions between Sartre and De Beauvoir, thereby becoming the first to argue that De Beauvoir offers a unique contribution to our understanding of ethical decision-making in management. (shrink)

The importance of ethics education for undergraduate engineering students has been emphasized due to the manifold impacts of engineering on society. However, little is known about moral disengagement among engineering students, which could potentially lead to unethical engineering practice. Especially, it is not known how engineering students’ moral disengagement changes over the course of their college studies. In this paper, we conducted a longitudinal, mixed-methods study to investigate moral disengagement among undergraduate engineering students (n = 274) using Bandura’s theory of (...) moral disengagement as a theoretical framework. We found engineering students’ overall propensity to morally disengage did not change over time, but there were statistically significant differences in student responses to three mechanisms of moral disengagement. We further investigated these findings with students’ interviews. Based on our results, we discuss various theoretical and practical implications. (shrink)

We extend the Theory of Planned Behavior (TPB) for ethics in the workplace. Using a path modeling methodology, we find evidence that, for ethics, moral disengagement is an antecedent to the TPB predictors of attitude, subjective norms, and perceived behavioral control (PBC). We show that the TPB predictors mediate the influence moral disengagement has on ethical behavioral intentions. Thus, to improve ethical behavior, reducing moral disengagement is critical. We find support for including both types of PBC (self-efficacy and locus of (...) control) when modeling ethical behavior. We use four ethics scenarios and international data to test this model. We also evaluate potential positive influences on ethics in the workplace and find that recency of ethics training interacts with religiosity and activates it to reduce moral disengagement. We also find that principles-based ethics training enhances professionals’ self-efficacy to behave ethically. Experience, including time as a member in a professional accounting organization, increases both locus of control and self-efficacy to behave ethically. These variables—recency of ethical training, religiosity, principles-based professional ethics training, and experience—influence parts of the core TPB model, which in turn lead to improved ethical behavioral intentions. (shrink)

Situated in critiques of the “moral muteness” of technical rationality, we examine concepts of ethics and the avoidance of ethical language among Australian gas pipeline engineers. We identify the domains in which they saw ethics as operating, including public safety, environmental protection, sustainability, commercial probity, and modern slavery. Particularly with respect to ethical matters that bear on public safety, in the course of design and operational activities, engineers principally advocated for action using technical language, avoiding reference to potential consequences such (...) as death or destruction of property. Within their organizations, they saw themselves as occupying a technical “line of defense”. We argue that this focus on technical language is action-oriented. Ethics tells practitioners of unacceptable outcomes, but it does not guide them in what they need to do to avoid that outcome in practice. We observed some cases where engineers had not made the connection between their role and ethics in the sense of public safety. We argue that muteness on ethical matters can obscure the nature of the risk where technical advice is being taken on by non-technical actors, and where technical actors themselves do not have a clear sense of their public safety obligations. (shrink)

This research shows how business students’ disciplinary specializations can affect their sense of personal responsibility by providing rationalizations for moral disengagement. It thereby conceptualizes business students’ disciplinary specializations as a key dimension of the business school responsibility learning environment. Students use four main rationalizations to displace responsibility variously away from their own disciplinary specializations, to claim responsibility as the prerogative of their specialization, and to shiftirresponsibility onto disciplinary out-groups. Yet despite their disciplinary identifications, students largely rationalized that their sense of (...) responsibility was an individual matter that was unlikely to be affected by contextual influences, and they attributedirresponsible behavior to incorrigible ‘bad apples.’ A theoretical model is offered which illustrates these dynamics by combining Bandura’s social cognitive theory with social identity theory. The research is based on secondary data, specifically focus-group interviews conducted with undergraduate students at a major Scandinavian business school in connection with the implementation of the UN Principles for Responsible Management Education (PRME) initiative. The implications for management education include the need to strengthen students’ ‘disciplinary reflexivity,’ and to explicitly address the tension between students’ disciplinary solidarities and their faith in their own individual moral infallibility. (shrink)

Moral identity and moral dissonance in business ethics have explored tensions relating to moral self-identity and the pressures for identity compartmentalization in the workplace. Yet, the connection between these streams of scholarship, spirituality at work, and business ethics is under-theorized. In this paper, we examine the Quaker tradition to explore how Quakers’ interpret moral identity and negotiate the moral dissonance associated with a divided self in work organizations. Specifically, our study illuminates that while Quakers’ share a tradition-specific conception of “Quaker (...) morality” grounded in Quaker theology and the Quaker testimonies to truth, integrity, peace, equality, and simplicity, they often foreground the pursuit of an undivided self through seeking work that enables an expression of Quaker moral identity, or by resigning from work organizations that do not. In most cases, however, Quakers’ face moral dissonance at work and engage in either identity compartmentalization and draw upon the metaphor of a ‘spiritual journey’ as a form of self-justification, or reframe, compartmentalize and engage in work tasks that are both subjectively moral and meaningful. We present a model that elaborates these negotiation processes and invite further research that examines how the spiritual traditions influence moral identity construction at work. (shrink)

Moral disengagement was initially conceptualized as a process through which people reconstrue unethical behaviors, with the effect of deactivating self-sanctions and thereby clearing the way for ethical transgressions. Our article challenges how researchers now conceptualize moral disengagement. The current literature is overly liberal, in that it mixes two related but distinct constructs—process moral disengagement and the propensity to morally disengage—creating ambiguity in the findings. It is overly conservative, as it adopts a challengeable classification scheme of “four points in moral self-regulation” (...) and perpetuates defining moral disengagement via a set of eight psychological mechanisms, narrowing our understanding of the phenomenon. To address these problems, we propose to define process moral disengagement intensionally (specifying the necessary and sufficient conditions for correct application of the term) as intrapsychic cognitive reasoning processes through which people selectively reconstrue a moral judgment “behavior B by actor A is morally wrong” and shift it toward becoming “behavior B is not morally wrong” or “actor A is not responsible for behavior B.” This definition achieves disambiguation and increased concept clarity. We leverage the definition to motivate a classification scheme for psychological mechanisms of moral disengagement along two dimensions—reconstruing morality and reconstruing agency—and to initiate an open inventory of psychological mechanisms that specify how process moral disengagement operates. (shrink)

Most studies of corporate social responsibility have focused on the organisational level, while the individual level of analysis has been treated as a ‘black box’ when researching antecedents of CSR engagement or disengagement. This article offers insights into a small and medium-sized enterprise that is recognised as a pioneer in CSR. Although the extant literature suggests that the owner-manager is crucial in the implementation of CSR, this study reveals that employees drive CSR. The employees in the focal firm voluntarily joined (...) forces based on their shared perception of moral responsibility for CSR and they developed strict targets to be achieved by 2030. Despite their strong ethical and moral perspective when enacting CSR, they disengaged from their moral responsibility for CSR in various contexts. This paper contributes to the theory of moral decoupling by uncovering a novel context of disengagement—‘visionary procrastination’. Visionary procrastination is suggested to be a particularly relevant context of disengagement when individuals perceive moral responsibility for CSR. Moreover, by delivering insights into the antecedents of employee-initiated CSR on the organisational level, this study adds to the growing body of literature on the micro-foundations of CSR. (shrink)

Originally conceptualized by Bandura as the process of cognitive restructuring that allows individuals to disassociate with their internal moral standards and behave unethically without feeling distress, moral disengagement has attracted the attention of management researchers in recent years. An increasing body of research has examined the factors which lead people to morally disengage and its related outcomes in the workplace. However, the conceptualization of moral disengagement, how it should be measured, the manner in which it develops, and its influence on (...) work outcomes are areas of continued debate among researchers. In this article, we undertake a systematic review of research on moral disengagement in the workplace and develop a comprehensive research agenda that highlights opportunities for theoretical and empirical advancement of the literature. (shrink)

Although climate change jeopardizes the fundamental human rights of current as well as future people, current actions and ambitions to tackle it are inadequate. There are two prominent explanations for this motivational gap in the climate ethics literature. The first maintains that our conventional moral judgement system is not well equipped to identify a complex problem such as climate change as an important moral problem. The second explanation refers to people’s reluctance to change their behaviour and the temptation to shirk (...) responsibility. We argue that both factors are at play in the motivational gap and that they are complemented by crucial moral psychological insights regarding moral disengagement, which enables emitters to dissociate self-condemnation from harmful conduct. In this way, emitters are able to maintain their profligate, consumptive lifestyle, even though this conflicts with their moral standards with respect to climate change. We provide some illustrations of how strategies of moral disengagement are deployed in climate change and discuss the relationship between the explanations for the motivational gap and moral disengagement. On the basis of this explanatory framework, we submit that there are three pathways to tackle the motivational gap and moral disengagement in climate change: making climate change more salient to emitters and affirming their self-efficacy; reconsidering the self-interested motives that necessitate moral disengagement; and tackling moral disengagement directly. (shrink)

Based on a framework that integrates job demands-resources theory, social cognitive theory Handbook of personality, Guilford Press, New York, pp 154–196, 1999) and regulatory focus theory, the purpose of this research is to investigate the relationship between perceptions of organizational politics and subsequent moral disengagement and unethical behavior. We conducted a laboratory study and also collected data in two separate surveys 6 weeks apart from 206 individuals working full time to investigate the relationships presented in our model. In both studies, (...) we examined the direct relationship of politics perceptions on unethical behavior in organizations as well as the indirect relationship through the influence of moral disengagement. We investigated the moderating effect of regulatory focus on the relationship between moral disengagement and unethical behavior using the survey data. Results indicated that perceptions of politics were significantly related to our mediator, moral disengagement, which was significantly related to our dependent variable, unethical behavior. However, only prevention-focus moderated the relationships examined. Implications for future research and managerial practice are discussed. (shrink)

Prior research on citizenship behavior has mainly focused on its voluntary side—organizational citizenship behavior. Unfortunately, although compulsory behavior is a global organizational phenomenon, the involuntary side of CB—compulsory citizenship behavior, defined as employees’ involuntary engagement in extra-role work activities that are beneficial to the organization : 77–93, 2006)—has long been neglected and very little is known about its potential negative consequences. Particularly, research on CCB–counterproductive work behavior association is still in its nascent stage. Therefore, drawing on moral disengagement theory and (...) social exchange theory, we firstly attempt to systematically investigate how and when CCB leads to CWB. Specifically, we see employee silence as a critical form of passive CWB and propose a moderated mediation model. In the model, CCB predicts silence through MD—a set of cognitive mechanisms that deactivate moral self-regulatory processes, with the Chinese culture-specific concept of supervisor–subordinate guanxi, which captures the supervisor–subordinate non-work-related personal ties, acting as the contextual condition. Two-wave data collected from a sample of 293 employees in 17 manufacturing firms in China supported our hypotheses. The results revealed that the more employees experienced compulsory feelings caused by CCB, the more they morally disengaged and, in turn, resorted to avoidant or passive responses as a coping strategy. Further, s–s guanxi serves as a reverse moderator in that high s–s guanxi mitigates the destructive impact of CCB, makes employees less inclined to morally disengage, and thereby largely prevents them from practicing workplace silence behavior. Implications for theory and intervention strategies for practice are discussed. We also propose several promising avenues for future research. (shrink)

In this research, we examine the relationship between employee psychological entitlement and employee willingness to engage in unethical pro-organizational behavior. We hypothesize that a high level of PE—the belief that one should receive desirable treatment irrespective of whether it is deserved—will increase the prevalence of this particular type of unethical behavior. We argue that, driven by self-interest and the desire to look good in the eyes of others, highly entitled employees may be more willing to engage in UPB when their (...) personal goals are aligned with those of their organizations. Support for this proposition was found in Study 1, which demonstrates that organizational identification accentuates the link between PE and the willingness to engage in UPB. Study 2 builds on these findings by examining a number of mediating variables that shed light on why PE leads to a greater willingness among employees to engage in UPB. Furthermore, we explored the differential effects of PE on UPB compared to counterproductive work behavior. We found support for our moderated mediation model, which shows that status striving and moral disengagement fully mediate the link between PE and UPB. PE was also linked to CWB and was fully mediated by perceptions of organizational justice and moral disengagement. (shrink)

The purpose of this study was to examine individual and organizational antecedents and consequences of safety-related moral disengagement. Using Conservation of Resources theory, social exchange theory, and psychological contract breach as a theoretical foundation, this study tested the proposition that higher job insecurity is associated with greater levels of subsequent safety-related moral disengagement, which in turn is related to reduced safety performance. Moreover, we examined whether perceived organizational and supervisor support buffered or intensified the impact of job insecurity on moral (...) disengagement. Using a two-wave lagged design, anonymous survey data collected from N = 389 working adults in the U.S. supported the hypothesized moderated mediation model. Specifically, the conditional indirect effects of job insecurity on safety performance via moral disengagement were intensified as levels of perceived organizational and supervisor support increased. These results suggest that the threat of job insecurity may prompt employee moral disengagement; this effect is even stronger among employees who perceived higher levels of organizational and supervisor support. We interpret these counterintuitive findings in light of increasingly insecure contemporary work arrangements and how these may give rise to potentially unethical safety-related decision making and behavior. (shrink)

The spread and publicity given to questionable practices in the corporate world during the last two decades has fostered an increasing interest about the importance of ethical work for organizations, practitioners, scholars and, last but not least, the wider public. Relying on the Social Identity Approach, we suggest that the effects of different ethical climates on employee behaviors are driven by affective identification with the organization and, in parallel, by cognitive moral (dis)engagement. We compared the effects of two particular ethical (...) climates derived from the literature: An ethical organizational climate of self-interest, and an ethical organizational climate of friendship. Three hundred seventy-six workers completed measures of Ethical Climate, Organizational Identification, Moral Disengagement, Organizational Citizenship Behaviors, and Counterproductive Work Behaviors. Structural equation modelling confirmed that the two ethical climates considered were independently related to organizational identification and moral disengagement. These, in turn, mediated the effects of ethical climates on Organizational Citizenship Behaviors and Counterproductive Work Behaviors. We discuss results in light of the social identity approach, and present some practical implications of our findings. (shrink)

Although apparently irrational, people with seemingly high moral standards routinely make immoral decisions or engage in morally questionable behavior. It appears as if under certain circumstances, people become in some enigmatic way blind to the immoral aspects of what they are doing or consequences of their immoral actions. This article focuses and reports on a psychoanalytic inquiry into the role of emotions and the unconscious management of unwanted emotions in promoting moral blindness. Emotions are essential to the conscience, self-sanctioning, and (...) advancement of moral behavior. Notwithstanding moral ideations, a sufficiently strong counterwill may create incongruence between moral intentions and actual desires or behavior. The unwelcome experience of acute moral emotions such as guilt and anxiety is likely to activate a range of psychological defense mechanisms and unconscious processes to manage these emotions. It is argued that the management of these emotions through undue avoidance, inappropriate regulation, or lack of regulation, can bypass self-sanctioning. As result, the condition of moral blindness can develop or be sustained. The psychoanalytic explanations offered contribute to the understanding as to how emotions in combination with the unconscious mind can cause moral blindness in any person, notwithstanding high moral standards and good intentions. Improved understanding of moral blindness represents an important scientific step in improved understanding of our moral and immoral selves, with all its complexities, conflicts, and contradictions. (shrink)

Management plays an important role in reinforcing ethics in organizations. To support this aim, managers must use incentive and goal programs in ethical ways. This study examines experimentally the potential ethical costs associated with incentive-driven and goal-induced employee behavior from a managerial perspective. In a quasi-experimental setting, 243 MBA students with significant professional work experience evaluated a hypothetical employee’s ethical behavior under incentive pay systems modeled on a business case. In the role of the employee’s manager, participants evaluated the ethicality (...) of the employee’s incentive-driven and goal-induced ethical/unethical behavior and the outcomes of behavior, with consequences that were either favorable or unfavorable to the organization. The results indicated that participants discounted the ethical considerations of incentive-driven and goal-induced behavior when consequences were favorable to the organization. Participants’ morals and outcome orientations were also significantly related to their ethical judgments and intentions to intervene. The implications of these findings for research and practice are discussed. (shrink)

To address substandard working conditions in global value chains, companies have adopted private regulatory systems governing worker rights. Scholars agree that without onsite factory audits, this private regulation has limited impact at the point of production. Companies, however, audit only a subset of their suppliers, severely restricting their private regulatory attempts. Despite the significance of the placement of suppliers inside or outside firms’ “responsibility boundaries” and despite scholars’ having called for more research into how firms prioritize what suppliers to audit, (...) few, if any, systematic studies have examined the topic. This is problematic, as the placement of firms’ responsibility boundaries determines what suppliers and workers are included in firms’ private regulatory attempts. Based on a study of 12 Swedish firms and the theory of moral disengagement, this paper starts to fill this research gap by exploring how firms’ responsibility boundaries are placed. The paper illustrates how firms’ responsibility boundary placement is best described as a patchwork with firms defining and delimiting their responsibilities differently. The paper also demonstrates that three supplier types are particularly likely to be placed inside firms’ responsibility boundaries, while a fourth type is likely be placed outside. (shrink)

The purpose of this article is to provide a theoretical review of the moral disengagement literature, integrating research that has been completed as well as identifying thought lacunas, including the subfield of organizational moral disengagement. It is proposed that because moral disengagement is an inherently interpersonal phenomenon, organizational moral disengagement should be a salient concern of both organizational and management researchers. A conceptual framework of organizational moral disengagement is suggested, examining moral disengagement at both the employee as well as manager/executive (...) level. Lastly, a series of propositions are proffered in order to provide direction to organizational moral disengagement researchers, including the proposition that moral disengagement is a function of interpersonal proximity and the possession or lack of organizational power. Methods for effectively studying organizational moral disengagement are suggested. (shrink)

Unethical behavior in organizations has garnered more and more attention in the last decades but most of the scholarly work has used a static approach relying on methodological individualism and a mechanistic worldview when studying this topic. The process of moral disengagement and organizational culture have been linked to the prevalence of unethical behavior earlier, but this paper uses a complexity-informed systems perspective to explore the dynamic relationship of these concepts and aims to improve our understanding of the often unnoticeable, (...) step-by-step process through which organizational cultures can become conducive to unethical behavior. Organizations are conceptualized as complex adaptive systems in which transformative and stabilizing processes based on feedback loops take place continuously. It is discussed how these processes can lead to a phase transition driving organizations towards a state where unethical behavior is the general norm. The process is illustrated through real-life examples. (shrink)

In the past, deception detection research has explored whether there were specific personal characteristics that were related to lying and found that factors such as personality and morality are indeed related to lying. However, past research has usually focused on a variable-centered approach. Yet, a person-centered might be more suitable here as it allows for the study of people in an integrative manner. In this experiment, 673 students completed a questionnaire which included measures of the five factors of personality, the (...) level of moral disengagement, the perceived cognitive load when lying, lying strategies, frequency of lying and the LiES scale, a tool measuring the tendency to tell self-serving, altruistic and vindicative lies. We performed a Latent Profile Analysis to integrate personality, moral disengagement, and perceived cognitive load scores into specific profiles. Then, we related profile membership to lying behavior. We obtained four profiles, and found that extraversion, moral disengagement, and the perceived cognitive load contributed most to profile differences. We also found that lying frequency did not differ across profiles, whereas lying tendency did. In conclusion, our results suggest that several facets of the individual play a joint role in lying behavior, and that adopting a person-centered approach might be a good strategy to explore the role of interpersonal differences in lie detection research. (shrink)

Stakeholder theory focuses on how more value is created if stakeholder relationships are governed by ethical principles such as integrity, respect, fairness, generosity and inclusiveness. However, it has not adequately addressed strategies that stakeholders perceive as harmful to their interests and how this perception can even lead some stakeholders to view the firm’s strategies as unethical. To fill the void, this paper directly addresses strategies that stakeholders perceive as harmful to their interests, or what we refer to as harmful stakeholder (...) strategies. Specifically, it identifies factors associated with stakeholder perceptions of harm that are likely to cause them to consider a strategy unethical, examines the negative implications for firms that pursue such strategies in terms of likely stakeholder responses and damage to stakeholder relationships, and provides theory to help explain how firms are likely to respond to stakeholder claims that a strategy is unethical, based on factors such as the strategic importance of the claim to the firm, how long the strategy has been in use, the costs of remediation, the risk of stakeholder mobilization or new regulation, and whether firms can reasonably rationalize their actions. Assessing harm allows a firm to make a more accurate estimate of the costs of a strategy and can assist managers in allocating resources intended to reduce or remediate harm. (shrink)

We investigate the role of legitimacy in setting organizational goals as a way to address the potential “dark,” unethical side of organizational goal setting. Coupling qualitative and quantitative research methods to better understand legitimacy in goal setting, we first induce novel hypotheses based on observed practice and then provide survey evidence to test the performance implications. Study 1 reports findings based on interviews with twenty-two company executives. We identify attention to goal credibility, prioritization of stakeholders directly involved in the goal’s (...) attainment when setting goals, and communication openness regarding goals, as well as their combination, as being important to organizational performance outcomes. Study 2 determines whether these three practices and their interaction predict performance using a survey conducted with 522 companies across four countries. Among other findings, we contribute to the organizational goal setting literature by showing that higher organizational performance is associated with the amount of priority given to the key actors (typically employees) directly involved with the goal’s attainment. We also find a positive interaction between attention to goal credibility, key actor (employee) importance, and communication openness on financial performance and non-financial goal attainment. Our work takes an initial step toward understanding how organizations can better shape the legitimacy of organizational goals for improved organizational performance and reduced unethical behavior. (shrink)

This study involved using a mixed method research design to examine the moral philosophy difference between the ethical decision-making process of CEOs in U.S.-led and non-U.S.-led within the luxury goods industry. The study employed a MANOVA to compare the ethical profiles between the two leader types and a phenomenological qualitative process to locate themes that give indication as to the compatibility of the luxury strategy values and practices with the principles and concepts of responsible leadership and conscious capitalism. As the (...) luxury goods industry is facing the first slowdown since 2000, pressure to achieve sales targets in the U.S. to make up for losses in other markets will place these CEOs under extreme pressure from their headquarters. These leaders must possess the ethical decision-making capability to balance legal and moral dilemmas unique to multinational luxury goods organizations while delivering business results in a challenging environment. Results of the study show no evidence of difference in the ethical decision-making profiles between the two groups of leaders. The themes and emergent findings resulting from the qualitative analysis indicate a profound incompatibility between the values informing decision-makers using the luxury strategy and those employed by leaders operating within the principles and parameters of responsible leadership and conscious capitalism. Recommendations for future research include replicating the study with a larger sample, within a different geographic region or comparing leaders using the luxury strategy to those using conscious capitalism. (shrink)

In the period since the 2008 Wall Street crash, little consensus has emerged on its causes or actions to prevent a recurrence. Our capability for rational decision making was overwhelmed. Viewing the entire financial system as a huge, richly interconnected organization suggests that its structure and associated management practices are suited for a far simpler environment. An organization that is large relative to its environment and sufficiently complex to require the coordination of specialized expertise cannot function by enabling decision makers (...) to respond only to local demands. The resulting inability to recognize critical interdependencies and the nature of their risk makes periodic catastrophic failure likely. Specifically, compartmentalization of information, influence, and reward creates a myopic decision environment in which individual decision makers are unlikely to make effective or ethical decisions. Useful criteria for evaluating solutions can be suggested by considering the interaction of two factors: limited human information processing capability and the effect of motivation on information processing. Taken together, they suggest that human information processing is both limited and opportunistic. We cannot process all information available and the information selected for processing narrows to that needed to achieve salient rewards. Because of this, the organization's reward practices and their effect on motivation are a critical variable. Large financial rewards contingent upon short term, local, simplistic measures inevitably narrow the focus of decision maker's attention to a small part of the system. In contrast, dominant intrinsic motivation is rooted in awareness of, and responsibility for, broader outcomes. Each type of motivation differs in its requirements for sharing of information, influence, and reward. These, in turn, determine the adaptability of the organization to complexity and change. While this has significant ethical implications, its logic rests on the limitations of human information processing and motivation. Aligning human motivation and information flow to the demands of a complex, turbulent financial environment is the challenge we must meet to prevent further cataclysms. (shrink)

Setting goals in the workplace can motivate improved performance but it might also compromise ethical behavior. In this paper, we propose that individual differences in the dispositional tendency to morally justify behavior moderate the effects of specific performance goals on unethical behavior. We conducted an experimental study in which working participants, who were randomly assigned to a specific goal condition or to a condition with a vague goal that lacked a specific target, completed two tasks in which they had the (...) opportunity to act unethically. In an ethical dilemma task, participants in the specific goal condition were more likely to advocate using unethical methods. However, in an anagram task, only those with high moral justification overstated their performance to a greater degree in the specific goal condition. As such, individuals may not be equally susceptible to the ‘dark side’ of goal-setting. (shrink)

Several scholars have highlighted the importance of examining moral disengagement in understanding aggression and deviant conduct across different contexts. The present study investigates the role of MD as a specific social-cognitive construct that, in the organizational context, may intervene in the process leading from stressors to counterproductive work behavior. Assuming the theoretical framework of the stressor-emotion model of CWB, we hypothesized that MD mediates, at least partially, the relation between negative emotions in reaction to perceived stressors and CWB by promoting (...) or justifying aggressive responses to frustrating situations or events. In a sample of 1,147 Italian workers, we tested a structural equations model. The results support our hypothesis: the more workers experienced negative emotions in response to stressors, the more they morally disengaged and, in turn, enacted CWB. (shrink)