The research theorizes how hubris impacts ethical decision making and develops empirical evidence that earnings manipulation is more likely at firms led by CEOs influenced by hubris. The theory posits that hubris impairs moral awareness by causing decision makers to ignore external factors that otherwise drive such awareness. Additionally, these individuals apply a flawed subjective assessment of the decision they face which further impairs moral awareness. The predicted result is that hubris leads managers to invoke an amoral decision process which (...) causes a higher incidence of unethical behavior among these individuals. An empirical study investigates the relationship between CEO hubris and the unethical practice of earnings manipulation. This study finds a significant correlation between CEO hubris and earnings manipulation at the firms they lead, an outcome broadly consistent with the theory developed. (shrink)

Organizations have become essential institutions that facilitate the vital coordination and cooperation necessary to create value across societies. Recent research within moral psychology and behavioral ethics indicates that emotions play a pivotal role in promoting ethical decision making. The theory developed here maintains that most organizations retain norms that disfavor the experience and expression of many strong emotions while at work. This dynamic inhibits individual’s ability to generate moral intuitions and reason about ethical issues they encounter. This occurs as individuals (...) utilize specific emotion regulation mechanisms that stifle the experience and expression of emotion in organizational decision making. Over time, individuals fail to register emotion within organizational decision processes, which increases the prevalence of amoral decision making. Organizational emotion norms also influence the chronic accessibility of specific moral foundations that effect the contents of both moral intuitions that do occur, as well as deliberate reasoning that generates moral judgments. (shrink)

The paper defines the practice of tanking in regard to sport organizations and differentiates this approach from activities such as match fixing and team building. Thereafter, the ethical implications tanking presents are developed using Alasdair MacIntyre’s neo-Aristotilean ethical framework. In particular, MacIntyre’s concept of a practice that supports both internal and external goods is discussed to examine the moral questions tanking presents. The insights developed within this analysis are applied throughout to the specific practice of basketball within the discrete institution (...) of the National Basketball Association. Finally, the paper discusses some broader implications the tanking strategy presents for the management and leadership of a sophisticated sport franchise. (shrink)