The Price Leaders Pay for Cutting Ethical Corners

Unfortunately, it is not uncommon for leaders to ask their employees to cross ethical lines. Consider the following examples from a pilot study we recently conducted: A sales representative at a retail company was asked to grant credit approval to unqualified customers who were friends of her supervisor; a field technician at a communications company was asked by management to close telephone repair tickets for elderly customers whose phones were not fixed; and an engineer in the transportation industry was asked to approve projects that he felt were at risk for structural failure.

Examples like these exist in myriad settings. In a global survey of over 13,000 employees, a median of 22% of respondents across sectors reported feeling pressure to compromise standards at work.1 In our recent research, which includes several survey-based studies as well as laboratory experiments, we found that such pressure often comes from being specifically asked to engage in behavior that is unethical or morally questionable — what we refer to as receiving an unethical request.

However, while leaders may make unethical requests in an effort to enhance short-term results, for instance, or to gain personal benefits, those who make them run the risk of negatively affecting their employees’ motivation and task performance over the long term. Here, we’ll discuss why asking people to cut ethical corners can backfire in the long run and explain how that effect played out in our research.

Why Motivation and Performance Can Suffer

Employees who receive an unethical request at work may feel trapped. On the one hand, if they comply with the request, their behavior may lead to feelings of guilt or regret. Most people have an inherent desire to view themselves as good, moral individuals, and acting in ways that violate their own values is threatening to the way they want to think about themselves.2 Complying with an unethical request can also induce a fear of getting caught and punished. On the other hand, in refusing to comply, especially on moral grounds, the employee runs the risk of offending the requester, who may feel judged and get defensive. And if the requester is a supervisor, employees who don’t comply may worry that they will be cut off from important resources under the manager’s control, like promotions, bonuses, or desirable assignments.