Organisational corruption can stem from an unethical climate fostered by management, turning ‘good soldiers’ into ‘bad apples’. This shift can occur when employees are encouraged to meet goals at all costs, leading to unethical behaviour. The phenomenon of ‘goal contagion’ suggests that when one person’s goals are perceived as rewarding, others will adopt those goals, even if they lead to unethical conduct.
The financial industry is particularly prone to this, with high pressure to achieve targets often resulting in rule-breaking. To prevent this, it is critical to establish a strong ethical climate within the organisation. This involves not only setting ethical standards but also implementing them effectively.
A ‘moral buffer’ can be created by fostering an environment where employees feel safe to voice their concerns without fear of retaliation. Additionally, ensuring that rewards and punishments are tied to ethical conduct rather than just meeting targets can help curb unethical behaviour.
Management’s role is crucial in this, as their behaviour sets the tone for the entire organisation. By demonstrating ethical conduct and holding everyone accountable to the same standards, managers can help prevent the transformation of good soldiers into bad apples.
Go to source article: http://blogs.lse.ac.uk/businessreview/2017/04/04/how-not-to-turn-good-soldiers-into-bad-apples/