A new study shows that employers who apply ‘organisational disengagement’ to their employees may make them complicit in unethical practices and behaviour.
Aston and East Anglia Universities published a research paper in the journal Human Relations that shows how organizations can – unwittingly at times – create environments where unethical behavior is justified and normalised. The authors say the paper will have far-reaching consequences for corporate culture and ethics accountability.
The study, which is based on the data of thousands of employees introduces the concept organisational moral engagement, which explains the way inwhich moral standards are systematically lowered by businesses and government bodies to allow unethical behaviors that harm customers, communities, and the environment.
Research found that organisations who rely solely on codes of conduct can unintentionally encourage moral disengagement if they are not authentically implemented into practice.
The Volkswagen scandal was a particularly well-known example of moral disengagement, according to the authors. Managers and engineers at the company were responsible for creating, implementing, and hiding a device that was used to cheat emissions tests. The Grenfell Tower Inquiry also found that the companies who made and sold the cladding and insulation products for Grenfell Tower manipulated the testing process, misrepresented the test data, and misled market. The inquiry described them as “systematically dishonest”, in regards to their products.
Researchers found that moral disengagement in the workplace explains how likely employees are to participate in unethical conduct or remain silent.
According to the analysis, the concept is not just an accumulation of individual attitudes but rather a shared mindset or culture within the organisation that “encourages or justifies morally questioned behaviours in the name of organisational benefits”.
Researchers argued that by understanding how moral disengagement can operate collectively leaders could instead start to foster an ethical culture which reinforces moral standards.
The research was led by Professor Roberta Fida and Dr Irene Skovgaard Smith, along with an international team.
Prof Fida stated that the use of euphemistic words was indicative of moral disengagement.
As an example, the use of phrases like “stabilising prices” to describe price rigging made it sound ethical. She added that unethical practices can be rationalised by saying, “it’s not nearly as bad as our competitors’ actions” or “our products are safer than alternatives”. She said that such mechanisms “can transform morally questioned practices into behaviors perceived as acceptable, or even beneficial, within an organisational context.”
Dr Skovgaard Smith focuses on another mechanism, the “diffusion” of responsibility.
She said: “Complex systems, structures and procedures of organisations often obscure the decision-making process and who is accountable.
“This means unethical choices can be attributed more to the system than to personal choice or responsibility. Complex, impersonal organisational systems can also hide or distort the harmful effects of an organisation’s activities. For example, global value chains and bureaucratic procedures.
This detachment allows harmful practices to continue unchecked.
Employees became accustomed to unethical behavior through these mechanisms. Employees may be tempted to disregard their morals when they are told that it is “just necessary for efficiency” or “just following orders”.
Dr Skovgaard Smith added: “From Facebook’s data privacy scandals to financial misreporting, the study sheds light on ways organisations cultivate an environment where people remain silent about unethical practice.
When such practices are justified by the “greater good” of the organization, employees might feel pressured to keep quiet rather than take the risk of speaking out. This silence can perpetuate a vicious circle where unethical behaviour becomes normalised.
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