HOW UNETHICAL ARE YOU Banaji Bazerman and Chugh

HOW (UN)ETHICAL ARE YOU? Banaji, Bazerman, and Chugh

Being “ethical” or “unethical” • Self-perception is often biased • Managers are often biased without knowing • Article explores four related sources of unintentional unethical decision making

Sources of unintentional unethical decision-making • • (1) IMPLICIT PREJUDICE Bias that emerges from unconscious beliefs Mental associations may not be true Biases can be costly. They may lead to wrong decisions (e. g. . , in hiring a firing decisions) (2) IN-GROUP FAVORITISM Bias that favors your group Results in discrimination against others and the misallocation of resources It erodes the bottom line and may lead to losses or lower profits

Sources of unintentional unethical decision-making (2) • • (3) OVERCLAIMING CREDIT Bias that favors you People tend to over estimate their contributions Claiming too much credit can destabilize alliances • May also reduce performance and the longevity of groups • (4) CONFLICT OF INTEREST • Bias that favors those who can benefit you

Trying Harder Isn’t Enough • Must learn and understand own biases – Collect data • Gather data and analyze them. Observe results to determine whether you are biased. – Shape your environment • By working with different groups of people and understanding the extent of biases – Broaden your decision making • Think from various viewpoints • Think from the viewpoints of all the individuals who are impacted

The Vigilant Manager • Managers who aspire to be ethical must challenge the assumption that they are always unbiased and acknowledge that vigilance, even more than good intention, is a defining characteristic of an ethical manager • Only those who understand their own potential for unethical behavior can become the ethical decision makers that they aspire to be.