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On Understanding the Human Nature of Good and Bad Behavior in Business: A Behavioral Ethics Approach

Author

Listed:
  • de Cremer, D.
Abstract
The numerous scandals in business, such as those at AIG, Tyco, WorldCom, Enron and Ahold, have made all of us concerned about the emergence of unethical and irresponsible behavior in organizations. Such widespread corruption in business and politics has, as result, prompted a growth of interest in the field of business ethics. At the same time, however, within the academic world it is also recognized that to tackle those unethical actions in an efficient way, the field of business ethics needs to integrate insights from behavioral science. In this inaugural address I focus more closely on the benefits that a behavioral approach can bring to the field of business ethics. In presenting these benefits, I draw a distinction between prescriptive and descriptive approaches and outline how the field of psychology can help in integrating these two perspectives so that we can move towards a more comprehensive understanding of behavioral business ethics. This integration is illustrated by my own research addressing how sanctioning and regulation systems affect behavior, the benefits of procedural fairness and the workings of trust repair strategies. Finally, I formulate some implications for academia, the government and economics.

Suggested Citation

  • de Cremer, D., 2009. "On Understanding the Human Nature of Good and Bad Behavior in Business: A Behavioral Ethics Approach," ERIM Inaugural Address Series Research in Management EIA-2009-041-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam..
    • Handle: RePEc:ems:euriar:17694
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    File URL: https://repub.eur.nl/pub/17694/EIA-2009-041-ORG.pdf
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    References listed on IDEAS

    as
    1. De Cremer, David & Dijk, Eric van, 2009. "Paying for sanctions in social dilemmas: The effects of endowment asymmetry and accountability," Organizational Behavior and Human Decision Processes, Elsevier, vol. 109(1), pages 45-55, May.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    behavioral ethics; business ethics; descriptive; procedural fairness; sanctions; trust repair;
    All these keywords.

    JEL classification:

    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
    • M - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation

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