The price leaders pay for cutting ethical corners


Unfortunately, it is not uncommon for leaders to ask their employees to cross ethical lines. Consider the following examples from a pilot study we recently conducted: A sales representative at a retail company was asked to grant credit approval to unqualified customers who were friends of her supervisor; a field technician at a communications company was asked by management to close telephone repair tickets for elderly customers whose phones were not fixed; and an engineer in the transportation industry was asked to approve projects that he felt were at risk for structural failure.

Examples like these exist in myriad settings. In a global survey of over 13,000 employees, a median of 22% of respondents across sectors reported feeling pressure to compromise standards at work. 1 In our recent research, which includes several survey-based studies as well as laboratory experiments, we found that such pressure often comes from being specifically asked to engage in behavior that is unethical or morally questionable — what we refer to as receiving an unethical request.

However, while leaders may make unethical requests in an effort to enhance short-term results, for instance, or to gain personal benefits, those who make them run the risk of negatively affecting their employees’ motivation and task performance over the long term. Here, we’ll discuss why asking people to cut ethical corners can backfire in the long run and explain how that effect played out in our research.

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