Write in APA format. If using resources from outside put references and link to research. Also put citations

Yorkville University_BUSI2033 Organizational Behavior & Management 1

ETHICAL DILEMMA

Culture of Deceit

We have noted throughout this chapter, and the text overall, that honesty is generally the best policy in

manag ing OB. But that doesn’t mean honest dealing is always the rule in business.

Studies have found, in fact, that whole industries may encourage dishonesty. In one experiment,

subjects were first asked either to think about their professional iden tities, or to complete a generic survey.

They were then asked to report on a series of coin flips; they were told in advance that the more times the

coin showed heads, the more money they would make. The bankers who took the generic survey were about

as honest in reporting coin flips as people who worked in other fields. The bankers told to think about their

professional identities, however, exaggerated ho w often the coin turned up heads. People in other

professions didn’t do so — the tie between pro fessional identity and dishonesty was unique to those who

worked in banking. These results are certainly not limited to the banking industry. Many other ways of

prim ing people to think about financial transactions seem to generate more dishonesty. Studies have also

found that many individuals feel pressured to engage in dishonest behaviour to meet the bottom line.

Whenever money is under consideration, there are powerful motives.

Money motivations are strong in professional sports. For example, the number of top leaders in

FIFA (world soccer’s governing body) who were indicted in 2015 suggests that behaving dishonestly has

been accepted within FIFA, and covering u p for the dishonesty of oth ers has been encouraged. Domenico

Scala, FIFA’s audit and compliance committee chair, noted, “To support the change we need a culture that

censures inappropriate behaviour and enforces rules vigorously, fairly, and [is] responsi ve.” There is

general consensus that to over - come corruption, those in positions of authority must demonstrate

commitment to an ethical culture. As Scala noted, “It is the leaders’ tone that ensures it is embedded at all

levels of the organization. This mu st be honest and communicated with sincerity in both words and actions.”

There may well be a tendency to become dishonest when there is money to be made, so leaders may need

to be especially vigilant and communicate clear expecta tions for ethical behaviou r. Learning Activity 5 _ Ethical Dilem ma : Culture of Deceit

Yorkville University_BUSI2033 Organizational Behavior & Management 2

Fortunately, evidence shows that asking people to focus on relationships and the way they spend

their time can actually make them behave more honestly and help - fully. This suggests that a focus on the

social conse quences of our actions can indeed help to overcome corruption.

Questions

1. What are the negative effects of a culture that encourages dishonesty and corruption on its

reputation and employees?

2. Why might some organizations push employees to behave in a dishonest or corrupt manner? Are

there personal benefits to corruption that culture can counteract?

3. What actions can you take as a new employee if you are pressured to violate your own ethical

stan dards at work? How might mid - level employees’ responses to this question differ from those

of more senior managers?