THE ROOTS CAUSES OF UNETHICAL BEHAVIOR

THE ROOTS CAUSES OF UNETHICAL BEHAVIOR

Much of the unethical behavior in organizations occurs when:

• Organizations favor their own interests above the well being of their costumers, employees, or the public.
• Organizations reward behavior that violates ethical standards ,such as increasing sales through false advertising.
• Organizations encourage separate standards of behavior at work than at home, such as secrecy and deceit versus honesty.
• Individuals are willing to abuse their position and power to enhance their interest, such as taking excessive compensation for  themselves off the top before other stakeholders, receive their fair share.
• Managerial  values exist that undermine integrity, such as the pressure managers exert on employees to cover up mistakes or to do what ever it takes to get the job done, including cutting corners.
• Organizations and individuals over emphasize the short term results at the expense of themselves and others in a long run; for example behavior is good based on the degree of utility, pleasure or good receive, regardless of the effects on others.
• Organizations and managers believe their knowledge is infallible and miscalculate that true risks, such as when financial managers invest organizational funds in high risks option trading.