Shawn’s Lecture on Shawn’s Lecture on EthicsEthics

I am a liar.

Why we are unethical?Why we are unethical?

• Cognitive DissonanceCognitive Dissonance

Assumptions Behind Unethical Assumptions Behind Unethical Decisions:Decisions:

• Assumption #1--It’s a shortcut to Assumption #1--It’s a shortcut to successsuccess

• Assumption #2—Advantages outweigh Assumption #2—Advantages outweigh disadvantagesdisadvantages

The Perceived AdvantagesThe Perceived Advantages

speedspeed profit profit path of least resistancepath of least resistance equity since others cheat (prisoner’s equity since others cheat (prisoner’s

dilemma)dilemma) no disadvantages if not caught no disadvantages if not caught

What it would look like…What it would look like…

A structured responseA structured response

What does it mean to be ethical?What does it mean to be ethical?

Why does being ethical matter?Why does being ethical matter?

How do we become more ethical?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 ethicsTranscendental, Intuitive ethicsAn intuitive moral compassAn intuitive moral compass

Greatest leadership trait is trustworthiness Greatest leadership trait is trustworthiness (Den Hartog)(Den Hartog)

Best leaders are “servants” who subjugate Best leaders are “servants” who subjugate their own needs (Collins)their own needs (Collins)

Priests score higher than CEOs on Priests score higher than CEOs on Multifactor Leadership Questionnaire Multifactor Leadership Questionnaire (Druskat)(Druskat)

Homer’s Theory on the Plight Homer’s Theory on the Plight of American Workersof American Workers

Cognitive DissonanceCognitive Dissonance

►Cognitive dissonanceCognitive dissonance ““Divided Soul of Corporate America” Divided Soul of Corporate America”

(Mitroff and Denton)(Mitroff and Denton) Majority feel cognitive dissonance Majority feel cognitive dissonance

(Renesch)(Renesch)

►Dissonance decreases morale, Dissonance decreases morale, productivity and successful completion productivity and successful completion of tasksof tasks

The Psychological Toll of Being The Psychological Toll of Being UnethicalUnethical

The Psychological Toll of Being The Psychological Toll of Being Unethical Unethical

Being Unethical Increases Being Unethical Increases Autonomic Nervous System Autonomic Nervous System Stress Stress Lie detection as proof Lie detection as proof Small rationalized decisions still Small rationalized decisions still

create stress create stress

Autonomic Nervous SystemAutonomic Nervous System

Sympathetic and Parasympathetic Sympathetic and Parasympathetic Nervous SystemNervous System

The Psychological Toll of Being The Psychological Toll of Being Unethical Unethical

Sympathetic system is catabolicSympathetic system is catabolic Stress decreases healthStress decreases health Becomes a pattern– Becomes a pattern–

Sympathetic Response Sympathetic Response DominanceDominance

Negative Effects of the Negative Effects of the Soprano EffectSoprano Effect FatigueFatigue Blood clottingBlood clotting High cholesterolHigh cholesterol Heart DiseaseHeart Disease StrokeStroke Chronically tensed musclesChronically tensed muscles AnxietyAnxiety DepressionDepression InsomniaInsomnia ObesityObesity Increased sensitivity to painIncreased sensitivity to pain

Lie Detector DocumentaryLie Detector Documentary

If the Gamble Fails…If the Gamble Fails…

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 It’s a quick way to get ahead…ahead… No, it decreases the chance of No, it decreases the chance of

successsuccess The costs to the organizationThe costs to the organization

– Undercut productivity and moraleUndercut productivity and morale Little’s research on personal projectsLittle’s research on personal projects

Good ethics, like self-concordant Good ethics, like self-concordant goalsgoals– Higher success because of elevated Higher success because of elevated

mood, endurance and drivemood, 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…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…It’s just one time…

Wrong again.Wrong again.

Single and small unethical decisions Single and small unethical decisions have global implications have global implications – Friendly Fire—Practical Drift (Snook)Friendly Fire—Practical Drift (Snook)

How to Change Our Lyin’ WaysHow to Change Our Lyin’ Ways

Ethics are created only through habit Ethics are created only through habit and socializationand socialization

Creation of intervening mechanisms Creation of intervening mechanisms Want to KnowWant to Know