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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 equity since others cheat (prisoner’s dilemma) no disadvantages if not caught What it would look like… A structured response What does it mean to be ethical? Why does being ethical matter? How we become more ethical? Shawn’s Probability Measures Chance of winning the Powerball Lotto Chance of correctly predicting the entire NCAA basketball brackets? in 36,000,000 in 36, 000, 000, 000 Chance of doing something unethical without suffering a cost? Priceless 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) Homer’s Theory on the Plight of American Workers The Psychological Toll of Being Unethical Being Unethical Increases Autonomic Nervous System Stress Lie detection as proof Small rationalized decisions still create stress Autonomic Nervous System Sympathetic and Parasympathetic Nervous System 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 Lie Detector Documentary 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 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) 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 peers influence ethics more than 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 ... Multifactor Leadership Questionnaire (Druskat) Homer’s Theory on the Plight of American Workers Cognitive Dissonance ► Cognitive dissonance “Divided Soul of Corporate America” (Mitroff and Denton)... completion of tasks The Psychological Toll of Being Unethical The Psychological Toll of Being Unethical Being Unethical Increases Autonomic Nervous System Stress Lie detection as proof Small... Probability Measures Chance of winning the Powerball Lotto Chance of correctly predicting the entire NCAA basketball brackets? in 36,000,000 in 36, 000, 000, 000 Chance of doing something unethical