We investigate peer influence on managerial honesty under varying levels of transparency. In a laboratory experiment, managers report their costs to a superior to request budget. We manipulate whether the managers learn each other’s report and cost or the report but not the cost. The results show, first, that managers are susceptible to peer influence, as they join peers in reporting honestly and dishonestly both under full and partial transparency. Second, however, the effect of peer influence is asymmetric. While managers’ (...) dishonesty increases much when peers’ reports are higher than they have expected, the opposite is not true. Third, partial transparency reinforces this asymmetry in peer influence. Unlike full transparency, it allows managers to substitute self-serving assumptions for missing information and to thus justify their own dishonesty more easily. The contribution of this study is twofold: It provides evidence for the interaction between transparency and peer influence and it highlights the role of expectations in fueling dishonesty. Our findings warn firms that especially partial transparency may spread dishonesty more than honesty. Transparency may also hurt firms that push honesty norms but fail to enforce compliance, thus raising and disappointing managers’ expectations. (shrink)

Although extant literature has covered the differences between unethical behaviors in relation to perpetrators and targets, most of this research has not considered the effects of observed unethical behaviors on employees. In this study, we focus on observed unethical behaviors of peers targeted at their organization and examine how witnessing a peer engage in an organizationally targeted unethical behavior would impact the observer. Drawing on cognitive appraisal theory, we propose that organizational identification will inform emotions, which in turn will shape (...) employee silence, depending on how employees appraise the observed unethical behavior. We theorize that peer unethical behaviors would induce anger, anxiety, and vicarious shame, which will guide employees’ quiescent and prosocial silence behaviors. In addition, we suggest that the proposed relationships would vary with the level of organizational identification. With a sample of 329, results from a between-subject scenario study generally supported our hypotheses. There was a combined effect of peer unethical behaviors and organizational identification on anger, anxiety, and shame, which in turn led to employee silence in the cases of anxiety and shame. (shrink)

Research by academics, professional organizations, and businesses on ethics in the workplace often relies on surveys that ask employees to report how frequently they have observed others engaging in unethical behavior. But what do these frequencies in observer-reports say about the frequencies of committed unethical behavior? This paper is the first to address this question by empirically exploring the relationship between observer- and self-reports. Our survey research among the Swiss working population shows that for all 37 different forms of unethical (...) behavior investigated, observer-reports show higher frequencies than self-reports. Ratios of observer- to self-reports vary substantially among these forms, ranging from 1.46 for improperly gathering competitor’s confidential information to 6.4 for engaging in (sexual) harassment or creating a hostile work environment. The results indicate that researchers should not assume that the frequency in self-reports can generally be approximated by the frequency in observer-reports. Four possible explanations are presented for the differences in ratios, with recommendations for future research. (shrink)

The spread of unethical behavior in organizations has mainly been studied in terms of processes occurring in a general social context, rather than in terms of actors’ reactions in the context of their specific social relationships. This paper introduces a dynamic social network analysis framework in which this spread is conceptualized as the result of the reactions of perpetrators, victims, and observers to an initial act of unethical behavior. This theoretical framework shows that the social relationships of the actors involved (...) in an initial act impact in multiple ways the likelihood that unethical behavior spreads. It reveals furthermore that social relationships may change in the wake of unethical behavior, such that indirect negative consequences can arise for organizations. The proposed framework provides a basis for the development of a formal stochastic actor-oriented model of network dynamics which would enable simulations of the spread of unethical behavior. (shrink)

ABSTRACT Leaders have been thought to play a vital role in influencing employees’ unethical behavior. However, what happens to leaders and followers in the aftermath of unethical conduct has received little attention in the literature. Drawing from the correspondent inference theory, we examine the conditions under which leaders attribute their followers’ unethical behavior to poor moral character and eventually assign them low performance ratings. Through a two-wave research design and data from 290 matched employee–leader dyads, we found that a leader (...) is more likely to infer that a follower who has engaged in unethical behavior is of poor moral character when the leader has a higher moral identity, and the leader will impose lower performance ratings on this follower when the leader prefers lower moral decoupling. (shrink)

ABSTRACT By integrating theories of social learning and moral judgment, we developed a theoretical model on whether and when peers imitate employees’ unethical pro-organizational behavior in the workplace. The study, which involved 256 employees in a large manufacturing company in China, revealed that employees’ UPB positively predicted peers’ vicarious learning of UPB, with the effect strengthened by employees’ organizational tenure but weakened by peers’ deontic injustice. Moreover, the positive effect of employees’ UPB on their peers’ vicarious learning was mitigated, and (...) even turned negative when employees’ organizational tenure was low, but peers’ deontic injustice was high. (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)

Leveraging perspectives from social cognitive theory, the attention-based view, and social networks literatures, we tested the relationship between unethical choice and network unethicality, which we define as respondents’ perceptions of their peer advisors’ unethical choices. Although social cognitive theory predicts that perceptions of peer advisor unethical choice are positively associated with unethical choice, we theorize that the nature of this relationship depends on the personality of the actor and the situation. Results from a lagged study suggest that individual and situational (...) variables may act as key buffers to the adverse impact of unethical social influence on ethical choice. Strengths, limitations, and directions for future research are discussed. (shrink)

Codes of ethics are directly aimed at behavioral control, but they also affect a company’s ethical culture, which in turn concerns compliance and ethical behavior. To positively influence a company’s ethical culture, employees must be familiar with its code of ethics, perceive that top management is committed to the code, and believe that their peers also comply with the code. The evidence on whether a code’s design affects a company’s ethical culture is limited. This study’s factorial survey experiment contributes to (...) this gap in two ways: first, it investigates whether a code’s design affects how easily the code can be learned and, therefore, contributes to code familiarity. Second, it examines how a code can convey expectations regarding top management’s commitment and peers’ behavior, both of which are part of ethical culture. The results indicate that a positive tone increases code familiarity, and a code signed by top managers sends a strong signal of their commitment to the code. Finally, various implications of the results for research and practice are discussed. (shrink)

Taking an abductive, mixed-methods approach, we explore the content of people’s moral deliberations. In Study 1, we gather qualitative data from small groups of graduate business students discussing moral dilemmas. We analyze their conversations with a focus on how participants perceive others’ thoughts, opinions, and evaluations about the dilemmas and incorporate them into their reasoning. Ascribing such capacities to think and feel to others—i.e., mind perception—is central to morality. We use the conversations in Study 1 to identify whose minds participants (...) perceive. Study 1 also identifies how particular elements of deliberation—including the exploration of consequences, acknowledging ambivalence, seeking alternative options, the development of deep feelings, and the search for a moral compass—are linked to these perceptions of others’ minds. In Study 2 (an exploratory, online experiment with 378 participants), we find that priming individuals with specific forms of mind perception can influence the elements of moral reasoning they employ, and we find evidence that the presence of elements of reasoning are linked to participants’ final choices in a business-related ethical dilemma. (shrink)

In business ethics, there is a large body of literature focusing on the conditions, factors, and influences in the ethical decision-making processes. This work builds upon the past critical reviews by updating and extending the literature review found in Craft’s :221–259, 2013) study, extending her literature review to include a total of 141 articles. Since past reviews have focused on categorizing results based upon various independent variables, we instead synthesize and look at the trends of these based upon the four (...) ethical decision making categories: Awareness, Behavior, Judgment, and Intention. We focus on the moderation and mediation effects found within these studies and provide an in-depth analysis of future trends. Furthermore, we also highlight key statistical and methodological concerns, outline overarching trends, and directions of future research in empirical ethical decision making. (shrink)

Research suggests a direct negative relationship between peers’ unethical behavior and employees’ ethical intention. But several possible mechanisms might explain this relationship in more detail. For example, Machiavellianism is a personality trait characterized by interpersonal manipulation and the use of unethical means to achieve certain self‐interested ends, whether useful or pleasant. This article adopts an Aristotelian understanding of philia, related to three goods on which human relationships rest: useful, pleasant, and honest. We propose that Machiavellianism, a self‐interested, pragmatic personality orientation, (...) might explicate the relationship between peers’ unethical behavior and ethical intention. The results of a structural equation model applied to a sample of 436 banking employees in Spain reveals that Machiavellianism partially mediates the relationship between peers’ unethical behavior and employees’ ethical intention. We also find that with a greater level of peers’ unethical behavior, the negative effect of Machiavellianism on ethical intention increases, and that when peers’ unethical behavior is nonexistent, the negative effect of Machiavellianism on ethical intention disappears. These findings advance current literature by revealing that unethical peers can indirectly influence ethical intention, through shaping Machiavellianism. Our study is also the first to show that pairing high Machiavellians with ethical peers can help to cancel out the negative influence of Machiavellianism on ethical intention. (shrink)

Social desirability bias (SDB) is one of the main concerns in self-reported studies that measures explicit attitudes such as ethics research. Although SDB was introduced since the early 1950s, little effort has been made to understand the necessity of including an SDB scale in studies of sensitive topics such as ethics. The purpose of this paper was to (1) identify whether current ethics-related studies considered SDB when conducting their research and (2) ascertain whether SDB was a significant variable in such (...) studies. This investigation takes the form of a systematic review of articles published within the last 20 years in well-known business ethics journals (2000–2019). We found that (a) only 13.67% of ethics research measured SDB; (b) although the majority of the reviewed articles were from the West, researchers in Asia have also made significant progress in recent years in measuring SDB in their studies; (c) SDB was used mainly as a control variable and as such researchers preferred scales with fewer items; and (d) SDB was unavoidable even when using online surveys. Based on our findings, we attempt to provide an overview of SDB in ethics research and encourage ethics researchers who adopt self-reported surveys to include an SDB measurement in their studies to control SDB. (shrink)

Since the conceptualization of unethical pro-organizational behavior ten years ago, scholarly interest in exploring this phenomenon has multiplied. Given a burgeoning body of empirical research, a review of unethical pro-organizational behavior literature is warranted. This study, therefore, systematically reviews the extant literature on unethical pro-organizational behavior and presents a comprehensive theory-based review of the past developments in this field. We classify previous studies based on their underlying theoretical perspectives and discuss the antecedents and consequences of unethical pro-organizational behavior in work (...) context. We also explicate the boundary conditions under which the influence of these antecedents gets accentuated or alleviated. Overall, this study synthesizes past knowledge to elucidate why, how, and when unethical pro-organizational behavior unfolds in the workplace. Finally, the gaps in the extant theorization are identified and an agenda for future research is proposed. (shrink)

To understand how compliance develops both in everyday and corporate environments, it is crucial to understand how different mechanisms work together to shape individuals’ (non)compliant behavior. Existing compliance studies typically focus on a subset of theories (i.e., rational choice theories, social theories, legitimacy theories, capacity theories, and opportunity theories) to understand how key variables from one or several of these theories shape individual compliance. The present study provides a first integrated understanding of compliance, rooted in complexity science, in which key (...) elements from these theories are considered simultaneously, and their relations to compliance and each other are explored using network analysis. This approach is developed by analyzing online survey data (_N_ = 562) about compliance with COVID-19 mitigation measures. Traditional regression analysis shows that elements from nearly all major compliance theories (except for social theories) are associated with compliance. The network analysis revealed groupings and interconnections of variables that did not track the existing compliance theories and point to a complexity overlooked in existing compliance research. These findings demonstrate a fundamentally different perspective on compliance, which moves away from traditional narrow, non-network approaches. Instead, they showcase a complexity science understanding of compliance, in which compliance is understood as a network of interacting variables derived from different theories that interact with compliance. This points to a new research agenda that is oriented on mapping compliance networks, and testing and modelling how regulatory and management interventions interact with each other and compliance within such networks. (shrink)

Incivility among employees in frontline encounters is prevalent, but little is known about its impact on customers’ ethics-related perceptions and behaviors. Drawing upon the stimulus–organism–response paradigm, this study examines how witnessing incivility among employees can serve as a social atmospheric cue to influence customers’ perceived ethicality of an organization and their subsequent behaviors. According to our results, in response to employee-to-employee incivility witnessed during frontline encounters, customers perceive the uncivil employees’ organization to have a lower level of ethicality. In turn, (...) customers engage more in unethical behavior and less in customer citizenship behavior. We further demonstrate that the negative effect of uncivil employee-to-employee interactions on customers’ perception of the ethicality of an organization is amplified when customers have an a priori perception that the organization is competent. The findings hold theoretical and practical implications for the management of employee-to-employee incivility and unethical customer behavior during frontline encounters. (shrink)

In this study, we examined the role of social learning theory in explaining academic dishonesty among 673 college students in the United States, France, and Greece. We found support for social learning theory such that perceived peer dishonesty was incrementally valid as a predictor of self-reported academic dishonesty across three countries beyond personal factor of conscientiousness and demographic factor of age. Contrary to expectation, perceived penalty for academic cheating received support in the U.S. sample only. Justification for academic dishonesty contributed (...) incremental variance after controlling for other factors including age, conscientiousness, perceived penalty for cheating and peer dishonesty across three countries. In addition, cultural differences accounted for almost 50% of the explained variance in academic dishonesty with French students reportedly engaged in significantly more academic cheating behavior than Greek and U.S. students. Discussion and implications for business ethics teaching and research were discussed. (shrink)

Marketing research on adolescents’ ethical predispositions and risky behaviors has focused primarily on individual difference variables. The present study, in contrast, examines the social network positions that an adolescent occupies within a group. A survey of 984 adolescents demonstrates that EP and RB stem from a balance between assimilation and individuation. In particular, we show that adolescents with close first-degree relationships within a specific peer group and/or high need for uniqueness have lower EP and engage in more RB, while adolescents (...) that are more central to the entire network have higher EP. The theoretic and practical implications of these findings are discussed. (shrink)

A well-known common wisdom asserts that strong social bonds undermine delinquency. However, there is little empirical evidence to substantiate this assertion regarding adolescence academic cheating across cultures. In this study, we adopt social bonding theory and develop a theoretical model involving four social bonds and adolescence self-reported academic cheating behavior and cheating perception. Based on 913 adolescents in France and China, we show that parental attachment, academic commitment, and moral values curb academic cheating; counterintuitively, peer involvement contributes to cheating. We (...) test our theoretical model across culture and gender, separately, using multi-group analyses. For French teens, peer involvement encourages and moral values undermine cheating; for Chinese adolescents, all four social bonds contribute to cheating, similar to the whole sample. For girls, parental attachment deters, but peer involvement enhances cheating. For boys, parental attachment is the only social bond that does not affect cheating. We treat social integration as a mediator of the relationship between peer involvement and social bonds that construct, in turn, is related to cheating and ask: Considering popularity, who are likely to cheat? Our answers provide an interesting paradox: Popularity matters, yet popular French girls and unpopular Chinese boys are likely to cheat. Social sharing is a positive pro-social behavior in consumer behavior. However, academic cheating and rule breaking, reflecting self-serving altruism and the red sneakers effect, at a very young age may have the potential to grow into the Enron Effect later in their lives as executives in organizations. We shed new lights on both the bright and dark sides of social bonds on cheating, demonstrate bad company corrupts good morals, differently, across culture and gender, and provide practical implications to social bonding, business ethics, and cheating. (shrink)

What causes adolescents to develop consumer’ ethical beliefs? Prior research has largely focused on the negative influence of peers and negative patterns of parent–child interactions to explain risky and unethical consumer behaviors. We take a different perspective by focusing on the positive support of parents and peers in adolescent social development. An integrative model is developed that links parental and peer support with adolescents’ self-worth motives, their materialistic tendencies, and their consumer ethical beliefs. In a study of 984 adolescents, we (...) demonstrate support for a sequential mediation model in which peer and parental support is positively related to adolescents’ self-esteem and feelings of power, which are each associated with decreased materialism as a means of compensating for low self-worth. This reduced materialism is, in turn, associated with more ethical consumer beliefs. (shrink)

This study proposes a moderated mediation model based on deontic justice theory to investigate the impact of unethical peer behavior on employee performance. Data were collected in China through two survey studies, with two measurement points in each study. The data in study 1 were obtained from 271 employees of 17 firms, and the data in study 2 were collected from 225 employees of 9 firms. Confirmatory factor analysis was conducted to confirm the factorial validity of the measures employed in (...) the studies. The hypothesized moderated mediation model was tested using hierarchical multiple regression analysis. The results show that employee deontic justice mediates the negative relationship between unethical peer behavior and employee performance, and a stronger ethical climate tends to strengthen this indirect relationship. This study extends previous research by introducing deontic justice theory to explore the unconscious process that relates unethical peer behavior to employee performance. The theoretical and practical implications of this paper are discussed. (shrink)

The literature has suggested that to understand the diffusion of unethical conduct in the workplace, it is important to investigate the underlying processes sustaining engagement in misbehaviour and to study what occurs during vocational education. Drawing on social-cognitive theory, in this study, we longitudinally examined the role of two opposite dimensions of the self-regulatory moral system, regulatory self-efficacy and moral disengagement, in influencing academic cheating behaviour. In addition, in line with the theories highlighting the bidirectional relationship between cognitive processes and (...) behaviour, we aimed to also examine the reciprocal influence of behaviour on these dimensions over time. Overall, no previous studies have examined the longitudinal interplay between these variables. The sample included 866 nursing students who were assessed three times annually from the beginning of their vocational education. The findings from a cross-lagged model confirmed that regulatory self-efficacy and moral disengagement have opposite influences on cheating behaviour, that regulatory self-efficacy negatively influences not only the engagement in misconduct but also the justification mechanisms that allow the divorce between moral standards and action, and that moral disengagement and cheating behaviour reciprocally support each other over time. Specifically, not only did moral disengagement influence cheating behaviour even when controlling for its prior levels, but also cheating behaviour affected moral disengagement one year later, controlling for its prior levels. These findings suggest that recourse to wrongdoing could gradually lead to further normalising this kind of behaviour and morally desensitising individuals to misconduct. (shrink)