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Ethical Blindness

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Ethical Blindness
J Bus Ethics DOI 10.1007/s10551-011-1130-4

Ethical Blindness
Guido Palazzo • Franciska Krings • Ulrich Hoffrage

Received: 1 June 2010 / Accepted: 22 November 2011 Ó Springer Science+Business Media B.V. 2011

Abstract Many models of (un)ethical decision making assume that people decide rationally and are in principle able to evaluate their decisions from a moral point of view. However, people might behave unethically without being aware of it. They are ethically blind. Adopting a sensemaking approach, we argue that ethical blindness results from a complex interplay between individual sensemaking activities and context factors. Keywords Ethical decision-making Á Ethical/unethical behavior Á Ethical fading Á Moral disengagement Á Bounded awareness/ethicality Á Rigid framing

Introduction Business history is rich with examples of extreme forms of unethical behavior by and within companies. When these cases are made public by traditional muckrakers like Upton Sinclair in the nineteenth century or today’s NGOs, by internal whistle-blowers or official investigations, the public is often shocked. It seems to be difficult to understand how behaviors that seem to violate any moral common sense are possible. During the last three decades, the business ethics literature has developed sophisticated models that have considerably
G. Palazzo (&) Á F. Krings Á U. Hoffrage Faculty of Business and Economics, University of Lausanne, Internef, 1015 Lausanne, Switzerland e-mail: guido.palazzo@unil.ch F. Krings e-mail: franciska.krings@unil.ch U. Hoffrage e-mail: ulrich.hoffrage@unil.ch

improved our understanding of why, how, and under what conditions individuals make ethical decisions—and when they fail to do so. These models suggest that (un)ethical decisions are the result of an interplay between personal traits of the decision maker and characteristics of the situation (Trevino 1986). However, most research on ethical decision making still builds on the assumption that



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    References: Berkley, R., & Watson, G. (2009 December). The Employer-Employee Relationship as a Building Block for Ethics and Corporate Social Responsibility. Employee Responsibilities and Rights Journal, 275-277. Betz, M., O’Connell, L., & Shepard, J.M. 1989. Gender differences in proclivity for unethical behavior. Journal of Business Ethics, 8(5), 321-324. Dawson, L.M. 1997. Ethical differences between men and women in the sales profession. Journal of Business Ethics, 16(11), 1143-1152. Kulshreshtha, P. 2005. Business ethics versus economic incentives: Contemporary Issues and dilemmas. Journal of Business Ethics, 60(4), 393-410. Nwachukwu, S.S., & Vitell Jr., S. J. 1977. The influence of corporate culture on managerial ethical judgments. Journal of Business Ethics, 16(8), 757-776. Weaver, G.R. 2001. Ethics programs in global businesses: Culture’s role in managing ethics. Journal of Business Ethics, 30(1), 3-15. Wimbush, J. C., Shepard, J. M., & Markham, S. E. (1997). An empirical examination of the relationship between ethical climate and ethical behavior from multiple levels of analysis. Journal of Business Ethics, 16(16), 1705-1716. Peterson, D., Rhoads, A., & Vaught, B.C. 2001. Ethical beliefs of business professionals: A study of gender, age, and external factors. Journal of Business Ethics, 31(3), 225-232. Post, J.E., Lawrence, A. T., & Weber, J. 2002. Business and society: corporate strategy, public policy, ethics (10ed). New York, NY: McGraw Hill.…

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    Trevino, Linda K., ‘Ethical Decision Making in Organizations: A Person-Situation Interaction Model’, Academy of Management Review, 11(3), 1986, pp.601-617.…

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    In recent times, there has been huge concern on the issue of ethical leadership in the corporate world. Researchers have increasingly shifted their attention towards identifying what could be driving costly unethical behaviour in organizations. Organizations leadership stresses short-term result while disregarding the long-term implications of their actions. The result has been scandals and accounting frauds. Companies such as Enron, WorldCom (Knights and O’Leary, 2005), and Nortel executives (manipulating recovery earnings of post-dot-com in order to earn bonuses), are host of failure in ethical leadership that have threatened many senior management position and the financial survival of several companies. Some organizations lack authentic leaders who can exhibit leadership behaviour codes such as self-control, abstinence from egotistic self-interest and greed. How could such smart individuals get involved in such costly misconduct? This is the question on the lips of leaders and stakeholders of all area of public life in the wake of corporate scandals and the debacles of educational policy in the 21st century first years.…

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    As stated by Vinoth Ramachandra, the author of Sojourners Magazine defines “globalization like every other historical process in a fallen world, shares in both the goodness of human creation and the distortion of creation by sin and evil. Its benefits and threats are equally real and are intertwined in a complex variety of ways. For every benevolent aspect of globalization, there is a malevolent side that threatens to overwhelm the good. It is thus a Janus-faced entity, a paradoxical phenomenon that reflects the paradoxical nature of the human condition (Ramachadra, 2004).”…

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    Beauchamp, T. L, (2004). Case Studies in Business, Society, and Ethics. (5th ed.). Upper Saddle River, NJ: Pearson Education, Inc.…

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