Index

Aaron, Hank, 83

Abbott Laboratories, 87

abstract thinking, 156–58

Access International Advisors and Marketers, 11

accountability, 159

Adelphia Communications, 139

adjustable rate mortgages (ARMs), 57–58

agnotology, 131–32

American Enterprise Institute (AEI), 142

American Insurance Group (AIG), 100

American Medical Association (AMA), 132, 134

American Philosophical Association, 28

Anderson, Jack, 132

Arthur Andersen, 161, 162; Ethics and Responsibilities Business Practices services of, 122; failure to fx corruption at, 134–35, 138, 139, 149; ignoring unethical behavior at, 81–82, 92, 134–35, 136, 138, 139, 149, 161, 162

Aspen Institute, survey by (2008), 4

auditing industry, 81–83, 97–98, 134–40, 147–50

Auschwitz, 80

Banaji, Mahzarin, 45, 46, 146, 153

Banting, Frederick, 49

Barrionuevo, Alexei, 122

Beaton, Robin, 107

beer summit, 47

behavior: gap between actual and intended, 1–23; prediction of, 68–69

behavioral ethics: defnition of, 4; unethical behavior and, 2–5

behavioral forecasting errors, 62–66

Belichick, Bill, 91

Berardino, Joseph, 134, 138

billable hours reporting, 75–76, 108, 124

Birsch, Douglas, 160, 162–63

Blagojevich, Rod, 40, 61, 62, 68

bluefin tuna dilemma, 53–54

Boettger, Richard, 106–7

Boisjoly, Roger, 14–15

Bonds, Barry, 83, 84

Bonilla, Henry, 138

bounded awareness, 7, 8

bounded ethicality, 5, 9, 22, 29, 43, 49, 60, 103, 150; cognitive limitations of, 30–31; individual and, 19–21; organization and, 16; society and, 21–22; transfer of 82–83

Brandt, Allan, 133

Brennan, Edward, 106

British Medical Research Council, 131

British Petroleum (BP), 142, 184n55

Browne, Lord John, 184n55

Burger, Chief Justice Warren, 135

Bush, President George W., 6, 19, 59–60, 77, 97, 139

business decisions, 30–31, 110–11, 112, 164

cancer, 130–32, 149–50; drug for, 87–88; tobacco use and, 129, 130–34, 147, 149–50; treatment dilemma for, 19–21

Carlin, George, 123

Carnegie Mellon University, 137

Caruso, Eugene, 49

Catholic Church scandals, 85–86

Center for Responsive Politics, 136, 183n23

Challenger space shuttle, 13–16, 145

change: blindness during, 93–94; defaults for, 167–68; individual and, 153–59; organization and, 160–66; resistance to, 145–46; society and, 166–72

charitable misbehavior, 114–17

cheating, 35–36, 61, 114

Cheney, Dick, 18–19

China, 52–53

Chu, Steven, 52

Chugh, Dolly, 35–36

Citigroup, 30

Civil War, 105

cleansing, psychological, 72–73

Clemens, Roger, 83

climate change, 52–53, 140–44, 150; cause and existence of, 184n55; technologies to address, 59

clinical trials, 64–66

Clinton, Bill, 61, 62, 74, 104–5, 140

Clinton, Hillary, 143

codes of conduct, 117–18, 119, 122

Coffman, Luke, 89–90

cognitive bias, 19–22, 150; culmination of, 62; exacerbation of, 138; judgment and training to correct for, 159

cognitive systems, 34–36

Columbus, Christopher, 130

commitment, escalation of, 156

compliance: initiatives for, 101–2, 103; officers for, 101; system failures in, 109–13

conflicts of interest, 20–21, 81–82, 115–16; 137

consequential approach, 25

Coopers & Lybrand, 135

corruption, intentional, 19, 21; institutional, 128, 144–50

Cosmegen, 87

Coy, Peter, 104

Credit Suisse First Boston, 30

credit-rating agencies, 77–79, 81

Crowley, James, 46–47, 48

Cushman, Fiery, 96–97

Daly, Herman, 59

de la Villehuchet, Rene-Thierry Magon decision making, 70–71; behavior in, 68–69; ethics and, 29, 32, 33–34, 70–71; feedback in, 159; modes of, 34–36; planning stage of, 155; side effect of, 33

defaults, 167–68, 172

Deloitte & Touche, 136, 138

deontological approach, 25, 27

Department of Justice, 105

Deshpande, Rohit, 72

dictator game, four-player, 89–90

Diekmann, Kristina, 62

disclosure, 115–16, 138

discount rate, 56–60

diversity programs, 3

Duke University, 55

Duncan, David, 136

egocentrism, 48–56

energy industry, 140–44, 147, 150

Enron, 27, 61, 75; business ethics statement of, 121; ethical organization and, 118, 134, 136, 139; unethical behavior ignored at, 78, 81–82, 92, 97–98

Environmental Protection Agency (EPA), 168

Epley, Nick, 49

Ernst & Young, 140

ethical blinders, 22

ethical decision-making, 29, 32–34, 70–71

ethical fading, 16, 22, 30–31; causes of, 71–72; compliance systems and, 111, 112; decision making and, 68, 69–70; and Ford Pinto decision, 70–71

ethical gaps, individual, 6–13; organizational, 13–16; societal, 16–19

ethical sinkholes, 164–66

ethical standards adjustment, 75–76

ethicality: overestimation of, 1, 173n1; personal belief in, 62; self ratings of, 1, 4

ethicists, 27–28

ethics: educational programs and training for, 3–4, 27–28, 117; gap narrowing in; 152–72; interventions for, 4; talk about, 163

euphemisms, 123–24

experimental philosophy, 34

ExxonMobil, 141–42

Facebook, 156

fairness, 56

False Claims Act, 105–6

Fastow, Andrew, 75

favors, 38–39

feeder funds, 11, 92

Fielder, John H., 160, 162–63

financial crisis (2008), 2–3, 77–78

Financial Services Authority (FSA), 126

fines, 111–12

fishing crisis, 53–56

Fitch, 77

Foley, James, 85

footbridge dilemma, 24–25, 26

Ford, 161

Ford Pinto, 70–71, 160–62, 164–65

formal ethics, 103, 104, 117, 119, 122, 163

fraud, 92, 105, 138, 149, 165

Fridell, Lorie, 48

fuel effciency, 168–69

future concerns, 56–60, 169–72

Game of Death, 13

Garland, Robert, 138

Gates, Henry Louis, Jr. 46–47, 48

General Electric, 81, 108, 165

Gentile, Mary, 155

Geoghan, John J., 85

Gino, Francesca, 72, 93

Gladwell, Malcolm, 36

Global Crossing, 82, 139

goal setting, 104, 106–8

Goldman Sachs, 98–99

Goldstein, Daniel, 18, 167

Goodell, Roger, 91

Government Accounting Office, 135

Graham, Evarts, 133

Grassley, Sen. Charles, 20

greenhouse gas emissions, 143

Greenwald, Anthony, 45, 46

group decision making, 159

groupthink, 16

Grove, Andy, 20

Haidt, Jonathan, 31–32

Hardin, Garrett, 52

Harrington, Noreen, 98–99

Hartman, Laura, 13

Harvard Business School, 100

Harvard University, 46–47, 133; Green Campus Initiative at, 58; Safra Center for Ethics at, 144

Health-South, 81

Hitler, Adolf, 31

Holley, Scott, 100

homeownership, 104–5

House of Representatives, Appropriations Committee, 138; Oversight and Government Reform Committee, 77

Iacocca, Lee, 160, 162

identifiable victim effect, 98

implementation delay, 170, 172

Implicit Association Test (IAT), 45–46, 48

incentive systems, 109

indirect blindness, 86–91

individual: change and, 153–59; ethical gaps and, 6–13; interventions for, 5

informal values, 160–63; culture and, 117–20, 122, 126, 127; and sanctions, 125; systems in, 127

information: processing of, 50–51; structure of, 168–69

in-group favoritism, 39–42, 43, 99

Intel, 20

intentions, 96

Intergovernmental Panel on Climate Change (IPCC), 142

International Commission for the Conservation of Atlantic Tunas (ICCAT), 53–54

International Union for Conservation of Nature, 54

intuitionists, 31–32

intuitive thinking, 35–36

Investors Overseas Services, 81

Iraq invasion, 6, 97

isolation, 164–65

Johnson & Johnson, 118, 181n29; Credo of, 120

Johnson, Ben, 75

Johnson, Eric J., 18, 167

Jost, John, 146

JPMorgan Chase, 30

Kant, Immanuel, 25

Kern, Mary, 35–36

Kilminster, Joe, 14

Knobe, Joshua, 32–33

Korean War, 123

KPMG, 136, 138

Krugman, Paul, 140

Kyoto Protocol (1997), 143

language sanitation, 123–24

Larrick, Rick, 168–69

Larsen, Ralph, 118

late trading, 98–99

Law, Cardinal Bernard F., 85–86

Lay, Kenneth, 61, 62, 75, 122, 136

leadership, 162

legacy admissions, 42–43, 99

Lehman Brothers, 140

Lessig, Larry, 144

Levitt, Arthur, 135–37, 138, 147

Lewinsky, Monica, 61, 74

Lincoln Savings & Loan, 81

Locke, Gary, 52, 53

Loewenstein, George, 137, 148

logic, utilitarian, 182n6

London Royal College of Physicians, 131

Macleod, John, 49

Madigan, Michael, 42

Madoff, Bernard, 10–11, 68, 76, 92, 100

Major League Baseball (MLB), 83–84, 106

market timers, 98

Markopolos, Harry, 92

Marshall (George C.) Institute, 141

Mason, Jerry, 14, 16

MBA Oath, The, 100–101

McGill, Ann, 21

McWane, 125

Medicaid, 59

Medicare, 59–60

Merck, 87–88

Messick, David, 31, 39–40, 69, 93, 109–10, 164

Milgram, Stanley, 11–13

Milkman, Katy, 67

minorities, 39, 43–45

mission statements, 117

Moberg, Dennis, 13

Moody’s, 77

Moore, Don, 137

morality: action and, 29; awareness of, 29–31, 69–70; behavior and, 114–15; compensation for, 116–17, 127; disengagement and, 72; hypocrisy and, 4; intention and, 29, 32–34; judgment and, 29, 31–32; reasoning and, 31–32

Morgan, Kimberly P., 137

mortgage lenders, 30

Morton Thiokol, 13–16, 145

motivated blindness, 79–86, 133

motivation, 69, 154

Mulloy, Larry, 14, 145–46

Mustargen, 87

NASA, 13–16, 145

National Football League (2007), 91

negotiation, 50–51, 69, 143, 155

Neisser, Ulric, 78–79

New England Patriots, 91

New York Jets, 91

New York Stock Exchange, 3

Nobel Prize, 49, 129, 142

oaths, 100–101, 103

Obama, Barack, 2, 46–47, 61, 107, 140

obfuscation, 146–48, 150

organ donation, 16–18, 167

organizations: ethical gaps in, 13–16, interventions for, 5; rating ethicality in, 1; systems designs for ethics in, 127; talk in, 161

Ortiz, David, 83

outcomes, 164; bias and, 94–99; personal and political interplay in, 150–51

Ovation, 87

overclaiming: of credit, 48–56; of resources, 51–52

Oxfam, 10

Paharia, Neeru, 72

Panhematin, 87

Pareto-optimal change, 129

Parmalat, 82

Parmar, Budhan, 13

Pearson, Drew, 132

Pentagon, 165

Pless, Paul, 41

Ponzi scheme, 10–11, 76

Posner, Richard, 2, 27

precommitment devices, 155–56

prediction errors, 62–66

prejudice, ordinary, 43–48

Price Waterhouse (PricewaterhouseCoopers), 136

Proctor, Robert, 131–32

psychological reactance, 113

Ramirez, Manny, 83

Ratzinger, Cardinal Joseph, 86

Rawls, John, 56

The Reader (film), 79–81

reasonable doubt, 146–48

recollection bias, 72–76, 159

Rest, J. R., 29, 32, 33–34

revisionist historians, 73

rewards, 103–9, 127, 143–44

Reynolds (R. J.) Tobacco Company, 141

Rezko, Antoin “Tony,” 40

Rogers, Todd, 67, 170

San Francisco Giants, 83–84

sanctions, 109–13, 127

Sants, Hector, 126

Sarbanes-Oxley Act, 3, 101, 115, 139

Scalia, Justice Antonin, 18–19, 20

Schelling, Thomas, 142

Schlink, Bernhard, 79–80

Schmidt, Peter, 42

Schwitzgebel, Eric, 27–28

Sears, 81, 106

Securities and Exchange Act of 1934, 134–35, 137

Securities and Exchange Commission (SEC), 92, 108, 135–38, 147–48

Seitz, Frederick, 141

self-awareness, 37

self-interest, 8, 37, 50, 52, 53, 64, 68, 81, 154–55, 171

self-serving bias, 73–74

Shell (Royal Dutch), 142

“should self” and decision making, 66–72, 155–59, 164–65

Shu, Lisa, 72

Sierra Club, 19

Singer, Peter, 9–10

Smith-Crowe, Kristin, 33, 118

social dilemma, 52, 53, 64–66

Social Security, 59

society: ethical gaps in, 16–19; interventions in, 5

Soll, Jack, 168–69

Sosa, Sammy, 83

special-interest groups, 60, 128, 129, 145, 146, 166

Speer, Albert, 31

Standard & Poor’s, 77; 500 Index, 119

Stanford University, 141

status quo bias, 145–46, 149

Staw, Barry, 106–7

stealing, 27–28

Stiglitz, Joseph, 129

Strange, Terry, 138

Summers, Lawrence, 140

Sun Microsystems, 101

Sunstein, Cass, 167

System 1 and 2 thinking, 34–36, 154, 164

Tauzin, Rep. Billy, 136, 138

Thaler, Richard, 166–67

Tillerson, Rex W., 142

time: delays, 170; pressures, 36, 164–65

tobacco: health risks of, 129, 130–34; industry for, 147, 149–50

Toffler, Barbara, 162

transparency, 116

trolley dilemma, 25–26

TRW Automotive, 105

Tubben, Lou, 162–63

Turner, Lynn, 135

Tyco International, 81, 82, 139

Tylenol recall, 118

Umphress, Elizabeth, 118

uncertainty, 53, 141, 147, 164

unethical behavior, 91–94; examples of, 9–10; ignoring, 77–99; labeling, 163; obligations to authority and, 11–12; Ponzi scheme as, 10–11

UNICEF, 10

Union of Concerned Scientists, 141–42

United Nations, 142, 143

University of California at Berkeley, Haas School of Business at, 137

University of California at Riverside, 27

University of Chicago, 21

University of Illinois shadow admissions

system, 40–42

University of Notre Dame, 123

University of South Florida, 47–48

University of Virginia, 42

utilitarianism, 25, 26, 27, 182n6

vaccinations, 8–9

Vietnam War, 123

visual percXerox,eption research, 93–94

Wachovia, 30

Wade-Benzoni, Kimberly, 55, 62

“want self” and decision making, 66–72, 153–56, 164

war crimes, 79–80

Waste Management, 149

Waxman, Rep. Henry, 77

Werhane, Pat, 13

Wethekam, Tom, 42

whistleblowers, 98, 105–6, 162

White, B. Joseph, 40, 41

Winslet, Kate, 80

World War I, 123

World War II, 80, 123

WorldCom, 81, 82, 98, 139

Xerox, 139

Xinhau, 52–53

Yale University, 32

zero-tolerance standards, 116–17, 127