When watching a potential emergency unfold, for example, people are much more likely to intervene if they are alone than if other bystanders are around-because they think others will deal with the situation, believe that others are more qualified to help, or fail to recognize an emergency because others don’t look alarmed. Yet a large body of behavioral science research suggests that even well-meaning and well-informed people are more ethically malleable than one might guess. They’re designed to educate employees and then punish wrongdoing among the “bad apples” who misbehave. Compliance programs increasingly take a legalistic approach to ethics that focuses on individual accountability. ![]() Interventions to encourage ethical behavior are often based on misperceptions of how transgressions occur, and thus are not as effective as they could be. ![]() Yet recurring scandals show that we could do better. Few executives set out to achieve advantage by breaking the rules, and most companies have programs in place to prevent malfeasance at all levels. ![]() Unethical behavior takes a significant toll on organizations by damaging reputations, harming employee morale, and increasing regulatory costs-not to mention the wider damage to society’s overall trust in business. From Volkswagen’s emissions fiasco to Wells Fargo’s deceptive sales practices to Uber’s privacy intrusions, corporate wrongdoing is a continuing reality in global business.
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