Business Ethics

It’s Not Easy to Be Ethical

Why do people who are decent and honorable in their private lives make immoral decisions at work? Professor Antonio Argandoña explains why such moral transgressions arise and what companies can do to prevent them.

I once read an incisive remark by an American executive: “The majority of immoral actions that I have seen in business were performed by people who were fundamentally honest.” I’m sure it’s true. The vast majority of managers are, I believe, decent and honorable people in their private lives who try to behave the same way at work. Nevertheless, they make decisions that are immoral, sometimes seriously so, and often without any clear knowledge of what they are doing.

Why do these moral transgressions arise? Sometimes, there are personal reasons. For example, people who are driven by subjective motives (money, reputation, power) often lack “moral fiber” (values). Also, a lack of moral development (criteria or principles) can make a person unable to separate good and bad. Other people simply suffer from a weakness of will (a lack of virtues).

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