When confronted with an ethical dilemma, most of us like to think we would stand up for our principles. But we are not as ethical as we think we are. In Blind Spots, leading business ethicists Max Bazerman and Ann Tenbrunsel examine the ways we overestimate our ability to do what is right and how we act unethically without meaning to. From the collapse of Enron and corruption in the tobacco industry, to sales of the defective Ford Pinto, the downfall (...) of Bernard Madoff, and the Challenger space shuttle disaster, the authors investigate the nature of ethical failures in the business world and beyond, and illustrate how we can become more ethical, bridging the gap between who we are and who we want to be. Explaining why traditional approaches to ethics don't work, the book considers how blind spots like ethical fading--the removal of ethics from the decision--making process--have led to tragedies and scandals such as the Challenger space shuttle disaster, steroid use in Major League Baseball, the crash in the financial markets, and the energy crisis. The authors demonstrate how ethical standards shift, how we neglect to notice and act on the unethical behavior of others, and how compliance initiatives can actually promote unethical behavior. They argue that scandals will continue to emerge unless such approaches take into account the psychology of individuals faced with ethical dilemmas. Distinguishing our "should self" from our "want self", the authors point out ethical sinkholes that create questionable actions. Suggesting innovative individual and group tactics for improving human judgment, Blind Spots shows us how to secure a place for ethics in our workplaces, institutions, and daily lives. (shrink)

When confronted with an ethical dilemma, most of us like to think we would stand up for our principles. But we are not as ethical as we think we are. In Blind Spots, leading business ethicists Max Bazerman and Ann Tenbrunsel examine the ways we overestimate our ability to do what is right and how we act unethically without meaning to. From the collapse of Enron and corruption in the tobacco industry, to sales of the defective Ford Pinto, the downfall (...) of Bernard Madoff, and the Challenger space shuttle disaster, the authors investigate the nature of ethical failures in the business world and beyond, and illustrate how we can become more ethical, bridging the gap between who we are and who we want to be. Explaining why traditional approaches to ethics don't work, the book considers how blind spots like ethical fading--the removal of ethics from the decision--making process--have led to tragedies and scandals such as the Challenger space shuttle disaster, steroid use in Major League Baseball, the crash in the financial markets, and the energy crisis. The authors demonstrate how ethical standards shift, how we neglect to notice and act on the unethical behavior of others, and how compliance initiatives can actually promote unethical behavior. They argue that scandals will continue to emerge unless such approaches take into account the psychology of individuals faced with ethical dilemmas. Distinguishing our "should self" from our "want self", the authors point out ethical sinkholes that create questionable actions. Suggesting innovative individual and group tactics for improving human judgment, Blind Spots shows us how to secure a place for ethics in our workplaces, institutions, and daily lives. (shrink)

Moral problems often prompt emotional responses that invoke intuitive judgments of right and wrong. While emotions inform judgment across many domains, they can also lead to ethical failures that could be avoided by using a more deliberative, analytical decision-making process. In this article, we describe joint evaluation as an effective tool to help decision makers manage their emotional assessments of morality.

This paper explores the influence of social categories on the perceived trade-off between a relatively bad but equal distribution of resources between two parties and a profit maximizing yet unequal one. Studies 1 and 2 showed that people prefer to maximize profits when interacting within their social category, but chose not to maximize individual and joint profits when interacting across social categories. Study 3 demonstrated that outside observers, who were not members of the focal social categories, also were less likely (...) to maximize profits when resources were distributed across social category lines. Study 4 showed that the transaction utility of maximizing profits required greater compensation when resources were distributed across, in contrast to within social categories. We discuss the ethical implications of these decision making biases in the context of organizations. (shrink)

Negotiation and decision-making expert Max Bazerman discusses how we can make more ethical choices by reframing our intentions toward being better rather than being perfect.

There have been spectacular villains in business that have received a great deal of attention in recent years, such as Elizabeth Holmes, Adam Neumann, and the Sackler family. All of them were supported to varying extents by others who were integral to their rise and fall, what business psychologist Max Bazerman calls "a cast of complicitors." Did those others know the extent they were contributing to unethical behaviour? How responsible were they for such behavior? In Profiles in Complicity, Bazerman explores (...) the role that others play in supporting unethical behavior in workplaces and organizations, through a host of examples such as those above, and offers a guide for readers to examine the roles they themselves may have in enabling wrongdoing and the responsibility we all have to keep harm-doers from destroying our organizations and our society. The book synthesizes scholarship from a range of disciplines, including psychology, philosophy, economics, and sociology, and provides useful approaches to thinking about all levels of complicity. Bazerman starts with a set of chapters exploring various profiles on differnet types of complicity, ranging from those who are knowing, true partners of wrong-doers to those who unknowingly benefit from systemic priviledge, or those who are overly loyal to an organization. Many readers will have witnessed people engaging in behaviors they believed were wrong, behaviors they would never engage in themselves, and then had to discern whether and how to take action. Profiles in Complicity will help readers understand the psychology of complicity, avoid being complicit in wrongdoing, and become better employees, citizens, and human beings in the process. The book will also offer direct guidance for organizations seeking to avoid ethical lapses, beyond simply looking for bad apples. (shrink)

We set out to find ways to help decision makers overcome the “winner’s curse,” a phenomenon commonly observed in asymmetric information bargaining situations, and instead found strong support for its robustness. In a series of manipulations of the “Acquiring a Company Task,” we tried to enhance decision makers’ cognitive understanding of the task. We did so by presenting them with different parameters of the task, having them compare and contrast these different parameters, giving them full feedback on their history of (...) choices and resulting outcomes, and allowing them to interact with a human opponent instead of a computer program. Much to our surprise, none of these manipulations led to a better understanding of the task. Our results demonstrate and emphasize the robustness of the winner’s curse phenomenon. (shrink)

ObjectiveWe argue that people often fail to perceive and process stimuli easily available to them. In other words, we challenge the tacit assumption that awareness is unbounded and provide evidence that humans regularly fail to see and use stimuli and information easily available to them. We call this phenomenon “bounded awareness” (Bazerman and Chugh in Frontiers of social psychology: negotiations, Psychology Press: College Park 2005). Findings We begin by first describing perceptual mental processes in which obvious information is missed—that is, (...) simply not seen—by the visual perceiver. Inattentional blindness and change blindness are examples. We then extend this phenomenon to decision making and forecasting, using evidence about focalism to illustrate how people over focus on some information and fail to use other easily available information. We next examine how these processes of bounded awareness may extend to other important domains and across levels of analysis, such as information-sharing in groups, decision making in negotiators, and in competitive bidding situations such as auctions.ConclusionsBounded awareness is a phenomenon that encompasses a variety of psychological processes, all of which lead to the same error: a failure to see, seek, use, or share important and relevant information that is easily seen, sought, used, or shared. (shrink)