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Shawn’s Lecture on Ethics. I am a liar. Why we are unethical?. Cognitive Dissonance Assumptions Behind Unethical Decisions: Assumption #1--It’s a shortcut to success Assumption #2—Advantages outweigh disadvantages. The Perceived Advantages. speed profit path of least resistance
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Why we are unethical? • Cognitive Dissonance Assumptions Behind Unethical Decisions: • Assumption #1--It’s a shortcut to success • Assumption #2—Advantages outweigh disadvantages
The Perceived Advantages • speed • profit • path of least resistance • equity since others cheat (prisoner’s dilemma) • no disadvantages if not caught
A structured response • What does it mean to be ethical? • Why does being ethical matter? • How do we become more ethical?
Shawn’s Probability Measures • Chance of winning the Powerball Lotto • 1 in 36,000,000 • Chance of correctly predicting the entire NCAA basketball brackets? • 1 in 36, 000, 000, 000 • Chance of doing something unethical without suffering a cost? • Priceless. • 0 in 36,000,000,000,000,000,000,000,000,000
Transcendental, Intuitive ethics • An intuitive moral compass • Greatest leadership trait is trustworthiness (Den Hartog) • Best leaders are “servants” who subjugate their own needs (Collins) • Priests score higher than CEOs on Multifactor Leadership Questionnaire (Druskat)
Cognitive Dissonance • Cognitive dissonance • “Divided Soul of Corporate America” (Mitroff and Denton) • Majority feel cognitive dissonance (Renesch) • Dissonance decreases morale, productivity and successful completion of tasks
The Psychological Toll of Being Unethical • Being Unethical Increases Autonomic Nervous System Stress • Lie detection as proof • Small rationalized decisions still create stress
The Psychological Toll of Being Unethical • Sympathetic system is catabolic • Stress decreases health • Becomes a pattern– Sympathetic Response Dominance
Negative Effects of the Soprano Effect • Fatigue • Blood clotting • High cholesterol • Heart Disease • Stroke • Chronically tensed muscles • Anxiety • Depression • Insomnia • Obesity • Increased sensitivity to pain
Debating with the unethical choice • Rationales— • It’s a quick way to get ahead… • You make more money… • I’m just one person… • The little stuff doesn’t matter… • It’s just one time… • All of these are wrong.
It’s a quick way to get ahead… • No, it decreases the chance of success • The costs to the organization • Undercut productivity and morale • Little’s research on personal projects • Good ethics, like self-concordant goals • Higher success because of elevated mood, endurance and drive
But you make money… • No, you lose money. A lot of money. • Increased turnover and training costs (Mayfield) • 7 times more loyal if ethical • High levels of loyalty = increase 11% productivity • Low integrity = 34% more turnover
Hey, I’m just one person • Yes, but you’re the most important person • Leaders have the biggest impact (Morgan) • Leaders influence ethics more than peers
It’s small so it doesn’t matter… • Nope, just the opposite. • The little stuff matters more than the big stuff • Broken Window theory (Gladwell) • Tipping point: the epidemiology of poor ethics
It’s just one time… • Wrong again. • Single and small unethical decisions have global implications • Friendly Fire—Practical Drift (Snook)
How to Change Our Lyin’ Ways • Ethics are created only through habit and socialization • Creation of intervening mechanisms • Want to Know