Ethical Spillovers in Firms: Evidence from Vehicle Emissions Testing

成果类型:
Article
署名作者:
Pierce, Lamar; Snyder, Jason
署名单位:
Washington University (WUSTL); University of California System; University of California Los Angeles
刊物名称:
MANAGEMENT SCIENCE
ISSN/ISSBN:
0025-1909
DOI:
10.1287/mnsc.1080.0927
发表日期:
2008
页码:
1891-1903
关键词:
Peer effects spillovers FRAUD CORRUPTION PRODUCTIVITY ETHICS
摘要:
In this paper, we explore how organizations influence the unethical behavior of their employees. Using a unique data set of over three million vehicle emissions tests, we find strong evidence of ethical spillovers from firms to individuals. When inspectors work across different organizations, they adjust the rate at which they pass vehicles to the norms of those with whom they work. These spillovers are strongest at large facilities and corporate chains, and weakest for the large-volume inspectors. These results are consistent with the economics literature on productivity spillovers from organizations and peers and suggest that managers can influence the ethics of employee behavior through both formal norms and incentives. The results also suggest that employees have persistent ethics that limit the magnitude of this influence. These results imply that if ethical conformity is important to the financial and legal health of the organization, managers must be vigilant in their hiring, training, and monitoring to ensure that employee behavior is consistent with firm objectives.