How Companies Gradually Slip Into Unethical Behavior
Unethical behavior within organizations often arises less suddenly than companies assume. New research from ESMT Berlin shows how employees can collectively slip into misconduct.
The New Study «The Emergence of Collective Moral Disengagement» was created by Ulf Schäfer (ESMT), Urs Müller (SDA Bocconi School of Management) and Johannes Habel (C.T. Bauer College of Business, University of Houston) and published in the peer-reviewed *Journal of Business Ethics*. The researchers examine how unethical behavior becomes normalized within organizations before it escalates into more serious misconduct. While previous research has often focused on individuals or on rationalizations after misconduct has already occurred, the new study examines how unethical behavior is socially normalized within groups before it escalates into serious misconduct.
Three-Phase Process of Behavioral Change
The study develops a theoretical framework that explains how «collective moral disengagement» occurs within organizations. Drawing on the theory of moral distancing, multilevel theory, and research on complex adaptive systems, the researchers outline a three-phase process through which unethical behavior within groups is gradually accepted through shared justifications and social reinforcement. To illustrate these dynamics, they analyze several major corporate scandals, including the Volkswagen “Dieselgate” emissions scandal, the Siemens corruption case, the Wells Fargo scandal involving fake accounts, and Purdue Pharma’s marketing of OxyContin.
«Many major corporate scandals are not triggered by individuals, but by groups of people who collectively and gradually normalize problematic behavior,» says Ulf Schäfer, senior lecturer at ESMT Berlin. «Employees can continue to see themselves as people who act ethically while simultaneously redefining, as a group, what is considered acceptable within the organization.»
What Makes Organizations Vulnerable
The study identifies several factors that make organizations more susceptible to a gradual slide into unethical behavior, including influential employees who legitimize questionable behavior, internal narratives that justify misconduct, and strong group loyalty that discourages employees from speaking out about wrongdoing.
The findings suggest that companies should pay closer attention to the early organizational dynamics through which questionable behavior can spread and become entrenched over time. The research underscores the importance of signals from senior leadership, internal discussions, and incentive structures in helping employees collectively interpret ethical boundaries before misconduct escalates into major organizational crises.
This article originally appeared on m-q.ch - https://www.m-q.ch/de/wie-unternehmen-schrittweise-in-unethisches-verhalten-abgleiten/
