Both individuals and organizations can engage in unethical behaviors. Across six experiments, we examine how people’s ethical judgments are affected by whether the agent engaging in unethical action is a person or an organization. People believe organizations are more unethical than individuals, even when both agents engage in identical behaviors. Using both mediation and moderation analytical approaches, we find that this effect is explained by people’s beliefs that organizations produce more harm when behaving unethically, even when they do not, as (...) well as people’s perceptions that organizations are relatively more blameworthy agents. We then explore how these judgments manifest across different kinds of organizations as well as how they produce discrepant punishments following ethically questionable business activities. Although society and the law often treat individuals and organizations as equivalent, people believe for-profit organizations’ behaviors are less ethical than identical individual behaviors. We discuss the ethical implications of this discrepancy, as well as additional implications concerning reputation management, punishment, and signaling in organizational contexts. (shrink)

Companies often benefit from others’ attributions of moral conviction for prosocial behavior, for example, attributions that a company has a sincere moral desire to improve the environment when behaving sustainably. Across four studies, we explored how organizations’ changing resource positions influenced people’s attributions for the motivations underlying prosocial organizational behaviors. Observers attributed less moral conviction following prosocial behavior when they believed an organization was losing economic resources. This effect was primarily a “penalty” assessed against organizations that were losing resources, as (...) opposed to a “reward” given to organizations gaining resources. Finally, we found that this effect occurred because people perceive organizations that are losing resources as more situationally constrained, leading them to attribute less dispositional moral conviction. We discuss theoretical and practical implications stemming from how changes in resource access can lead people to be more skeptical of organizations’ motivations following prosocial behavior. (shrink)