This article explores situational determinants and psychological consequences of counterfactual excuse-making - denying responsibility by declaring `I couldn’t have known.’ Participants who were made accountable for a stock investment decision that resulted in an outcome caused by unforeseeable circumstances were particularly likely to generate counterfactual excuses and, as a result, to deny responsibility for the outcome of their choices and minimize their perceptions of control over the decision process. The article discusses the implications of these findings for structuring accountability reporting (...) relationships in business and, more generally, stresses the benefits of counterfactual denials of responsibility for maintaining self-esteem and a desired self-identity. (shrink)