- 11 Jan 2008
- Working Paper Summaries
See No Evil: When We Overlook Other People’s Unethical Behavior
Even good people sometimes act unethically without their own awareness. This paper explores psychological processes as they affect the ethical perception of others' behavior, and concludes with implications for organizations. First, there is a tendency for people to overlook unethical behavior in others when recognizing such behavior would harm them. Second, people might readily ignore unethical behavior when others have an agent do their dirty work for them. Third, gradual moral decay leads people to grow comfortable with behavior to which they would otherwise object. Fourth, the tendency to value outcomes over processes can lead us to accept unethical processes for far too long. Key concepts include: Most people value ethical decisions and behavior, and strive to be good. Yet psychological processes sometimes lead them to engage in questionable behaviors that are inconsistent with their own values and beliefs. It is common to fail to notice or act on information when dealing with ethically relevant decisions. Organizational leaders must understand these processes and make the structural changes necessary to reduce the harmful effects of human psychological and ethical limitations. Closed for comment; 0 Comments.
- 05 Jul 2006
- Working Paper Summaries
Do We Listen to Advice Just Because We Paid for It? The Impact of Cost of Advice on Its Use
People make decisions every day by weighing their own opinions with advice from other sources. But do we know whether people use advice in a way that is helpful to them? In two experiments performed under controlled, laboratory conditions, Gino found that all else being equal, people weigh advice differently according to the amount of money they pay for it. Also, the cost of advice affects the degree to which people use it. Key concepts include: Decision makers may rely on costly advice more heavily than free advice. The cost of advice did not affect the value gained by following the advice. Cost-of-advice research results might interest the consulting and medical professions. We need to better understand decision makers' sensitivity to the cost they pay to gain advice. Closed for comment; 0 Comments.
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No Harm, No Foul: The Outcome Bias in Ethical Judgments
Too often, workers are evaluated based on results rather than on the quality of the decision. Given that most consequential business decisions involve some uncertainty, the upshot is that organizations wind up rewarding luck rather than wisdom. From a rational decision-making perspective, people's decisions should be evaluated based on the information the decision maker had available to him or her at the time, and not based on the ultimate results. This paper tests predictions about this effect, known as the outcome bias, in two studies in which participants were asked to consider various ethically questionable behaviors. Participants were also given information about the outcome of such behaviors and were asked to rate the ethicality of the described actions with or without the outcome information. The findings extend prior research in psychology and ethics. Key concepts include: The tendency demonstrated in these two studies might lead people to blame others too harshly for making sensible decisions that have unlucky outcomes. The outcome bias could also partly explain the slow reactions that people tend to have when they observe others' unethical behavior. It is worth trying to understand a decision maker's state of mind. Judging decisions based on their outcomes will wind up condemning too many unlucky people and acquitting too many scoundrels. Closed for comment; 0 Comments.