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Friday, December 20, 2019

Study offers first large-sample evidence of the effect of ethics training on financial sector behavior

Image result for business ethicsShannon Roddel
phys.org
Originally posted 21 Nov 19


Here is an excerpt:

"Behavioral ethics research shows that business people often do not recognize when they are making ethical decisions," he says. "They approach these decisions by weighing costs and benefits, and by using emotion or intuition."

These results are consistent with the exam playing a "priming" role, where early exposure to rules and ethics material prepares the individual to behave appropriately later. Those passing the exam without prior misconduct appear to respond most to the amount of rules and ethics material covered on their exam. Those already engaging in misconduct, or having spent several years working in the securities industry, respond least or not at all.

The study also examines what happens when people with more ethics training find themselves surrounded by bad behavior, revealing these individuals are more likely to leave their jobs.

"We study this effect both across organizations and within Wells Fargo, during their account fraud scandal," Kowaleski explains. "That those with more ethics training are more likely to leave misbehaving organizations suggests the self-reinforcing nature of corporate culture."

The info is here.