In the famous HBR article, The Folly of Rewarding A While Hoping for B, the ethical implications for rewards is clearly given.
In Broward County, Florida, three court-appointed experts get paid to complete a competency hearing for an elderly or disabled person.
- If the person is ruled incompetent/incapacitated, they get paid $325
- If judged competent, then only $125
Not only that, the court-appointed attorney gets paid:
- $325 if their client loses and
- $175 if they win
In 1993, out of 598 incapacity proceedings, 570 ended with a verdict of incapacitation! Surprised? Which verdict would you give based on the rewards?
Does your organization reward unethical behavior?