PDF Understanding ordinary unethical behavior: why people who...

There are ethical challenges faced by leaders.How do they know when they are inching toward dangerous territory?Three main psychological dynamics lead to crossing moral lines.omnipotence is when someone feels so aggrandized and entitled that they believe the rules of decent behavior don't apply to them.When others begin to accept and embody deviant norms, consider cultural numbness.We see justified neglect when people don't speak up because they are thinking of more immediate rewards.There are several strategies leaders can use to counter these dynamics, including relying on a group of trusted peers to keep you in check, keeping a list of things you will never do for profit, and looking out for ways you explain away borderline actions.

On a warm evening after a strategy off-site, a team of executives arrives at a well-known local restaurant.The group is looking forward to having dinner, but the CEO is not happy with the table and wants a different one.He says that this isn't the one that his assistant usually reserves for him.The manager told the young waiter that there were no other tables available.

The CEO interrupted the group again as they tried to move on.Am I the only one annoyed by the view?He wants to know why construction is happening.The waiter couldn't explain.The CEO says that you need to up your game.The air is tense.Someone made a joke about the man's competence after the waiter left.The CEO responded with a derogatory quip.The group is laughing.

Would you let the CEO know that you disapprove of his language and behavior?Would you try to set a better example?Is it possible to stay silent?

Three psychological dynamics lead to crossing ethical lines in this scene.omnipotence is when someone feels so aggrandized and entitled that they believe the rules of decent behavior don't apply to them.When others begin to accept and embody deviant norms, we have cultural numbness.When people don't speak up about ethical breeches because they are thinking of more immediate rewards such as staying on a good footing with the powerful, it's justified neglect.

The same dynamics come into play when there are allegations of corruption at Nissan, sexual harassment charges in the media sector, privacy breeches at Facebook, and money laundered through the financial sector.

It is difficult to find evidence that leaders in general have become less ethical over the years.The annual letter shareholders are written by Warren and Charlie Munger.

I've seen a lot of bad corporate behavior, both accounting and operational, caused by the desire of management to meet Wall Street expectations.It is possible to start with an innocent fudge in order to not disappoint the Street, turn a blind eye to rising insurance losses, or draw down a cookie-jar reserve.

The majority of us are not saints or criminals, but well-meaning leaders who sometimes fail to consult their moral compass while speeding ahead in a landscape full of tripwires and pitfalls.moral leadership is more than just acting in good or bad faith.navigating the vast space in between is what it is about.

How do you know when an ethical lapse is about to happen?There are more tips on how to identify omnipotence, cultural numbness, and justified neglect in yourself and on your team.

There is omnipotence.It can be traced back to this feeling that you are impervious and unstoppable, which can create a sense of elation.Rules and norms are meant for everyone but the leader.It feels like they are owed something when they cross a line.They think they have the right to change the lines.In the dinner party example above, the CEO's condescending behavior comes after a day of planning the next big moves.

It's not all bad.Sometimes the rush from bold action is what is needed to make progress.It can become a liability if you climb higher on the ladder.If fewer and fewer people around you are willing to keep you grounded, this is even more true.You have a problem if no one tells you no.If your decisions are only met with applause, deference, and silence, you may have reached peak omnipotence.

The psychological counterbalance to omnipotence is owning your flaws.You can see that you are not above it all by looking in the mirror.If you are in a leadership position, think about your weaknesses frequently.

You will need help with this sometimes.People who dare to tell the truth about their performance are the best executives I see.A group of trusted peers will tell you the truth even when it's unpleasant.Make sure to encourage dissent among your core team.

There is cultural numbness.Over time, your moral compass will shift towards the culture of your organization or team, no matter how principled you are.

I've seen examples of cultural numbness making leaders cross lines in my work with police and military units.It starts slowly.There is a need for officers to get to know a new culture.They need to act according to code and speak the language to fit in.They risk going too far by mimicking the culture of the gang members they are out to stop and getting caught up in a group's values system.

The kind of moral capture that takes place in companies is gradual.It is a trade-off between fitting into the culture and staying true to what you value.

When there is a discrepancy between the ideals of your company and what you see demonstrated and rewarded, it can lead to cultural numbness.Resolution is needed for the mind.When offensive language becomes the norm or you start to behave in ways that you wouldn't have expected, you stop noticing.

I have seen the most severe breakdowns in ethical leadership in cultural numbness.When leaders cross a line, they never describe it as a clear choice on that path, but as wandering down a muddy road, where they lost track of what was right and wrong.They describe a process in which they lost their sense of objectivity after becoming numb to others' language and behavior.The warning bells stopped ringing.

Look out for signs of moral capture, those brief moments when you don't recognize yourself and any other indications that you are subjecting your own personal agency to the deviant norms of the collective.Asking if you would be comfortable telling a journalist or a judge about what is going on is a regular gut-check.

You cannot always trust yourself in these situations.It is possible to get an outsider's perspective with the help of a trusted friend or family member.To remind yourself that the rest of the world may not work the same way, be sure to regularly compare and contrast your organization's culture with others.

Justified neglect.When there is a tangible reward at stake and the risk of being caught is low, the human mind is capable of justifying minor incursions.

A lab assistant forgets to remove her makeup on the production line of a pharmaceutical company.A small amount of medicine is enough to serve a mid-sized country for a year.It is impossible to detect a thin, yellow color trail after a brief time.The medicine is life-saving and very valuable, with just a hint of makeup that is probably harmless.

Would you report it?If a manager was quietly asked what to do, what would they do?Would you change your mind if you knew that patients might die from a production delay?Would your ballooning production budget affect your decision?Would you push the problem up to your superiors knowing that they might not take it seriously?

There is a choice between doing the right thing or getting the reward.When you begin to rationalize actions and tell yourself and others, "This is an exceptional situation," or "We have to bend the rules a little to get things done here," the slippery slope begins.