Few executives believe they are making an unethical choice. Instead, they look at it as purely a business decision. The moral dimension was not part of the equation. “Ethical Fading” (Tenbrunsel) takes ethics out of consideration, and even increases unconscious unethical behavior.
Consider these types of ethical fading:
Negative Performance Metrics: Goals incentivize unintended consequences instead of desired behavior
Mutually Beneficial: Other’s unethical behavior is beneficial to you
Slippery Slope: Unethical behavior develops gradually
End Justifies the Means: Outcome is good regardless of unethical behavior
Leaders must:
1. Devise incentives that encourage ethical behavior
2. Eliminate conflicts of interest
3. Address trivial infractions
4. Reward processes, not just outcomes
Are ethics a part of every business decision you make?
