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Ideas for Impact

Why New Managers Fail to Stop Unethical Behavior Among Subordinates

June 17, 2024 By Nagesh Belludi Leave a Comment

Unveiling the Causes Behind Managerial Failure in Ethical Oversight Embarking on a new role presents a host of challenges, and discovering unethical or potentially illegal practices within the organization can be a pivotal moment. The real question that emerges is whether you will be the catalyst for change in the face of such issues.

Imagine stepping into the shoes of a new retail banking sales manager at Wells Fargo, where fraudulent accounts were the means to achieving targets. Picture yourself becoming a manager at Volkswagen, only to uncover the manipulation of emissions tests by engineers using software. In both scenarios, middle management failed to intervene as these unethical practices took root.

As individuals rise to positions of authority, they wield the power to address unethical practices, yet sometimes, they don’t. Personal character flaws such as greed, sexism, or an unwavering pursuit of self-interest can drive this inaction, fostering complacency. Preserving the status quo and maintaining their position may become a higher priority than confronting misconduct.

Another significant factor at play is group identification. This involves adopting the group’s values, beliefs, and behaviors, becoming intertwined with one’s self-concept. Higher-ranking individuals often intensify this identification, feeling a stronger bond with their group or organization. Their membership becomes a point of pride, and they are more motivated to contribute to the group’s objectives than their lower-ranking counterparts.

However, this deep identification with the group comes with an ethical downside. It can obscure a manager’s ability to recognize ethical issues within the group. In simpler terms, those in higher-ranking positions may fail to perceive unethical actions because their strong identification blinds them to ethical violations. Consequently, they may hesitate to take action or intervene due to a lack of awareness.

Idea for Impact: Companies need to explore strategies that instill a strong moral compass in future business leaders. These leaders must maintain their ethical integrity as they climb the corporate ladder. Creating a safe environment for whistleblowing is crucial, empowering individuals to report dishonesty without fear of retaliation. It’s time to foster ethical leadership and ensure that the ascent up the corporate hierarchy aligns with an unwavering commitment to integrity.

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Filed Under: Business Stories, Leadership, Mental Models Tagged With: Ethics, Getting Along, Integrity, Leadership, Persuasion, Psychology, Role Models

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About: Nagesh Belludi [hire] is a St. Petersburg, Florida-based freethinker, investor, and leadership coach. He specializes in helping executives and companies ensure that the overall quality of their decision-making benefits isn’t compromised by a lack of a big-picture understanding.

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