Causes of Personal Misconduct Ignorance –Of right and wrong –Of whether something is right or wrong Weakness of Will –Self-interest Desire for approval/ fear of disapproval Fear of consequences Desire for personal gain

Causes of Personal Misconduct Malice –Much less common than ignorance or weakness of will. Failures of empathy –Blaming the victim, focus on self –Too much focus on the near and dear Prisoner’s dilemma

Cures for Personal Misconduct Develop Awareness –Of right and wrong –Of whether something is right or wrong Commitment to Integrity –Work to do the right thing even when it is hard. Recognize the sources of malice –Failure to develop awareness and lack of commitment to integrity

Cures for Personal Misconduct Develop your ability to empathize with others. Educate yourself about what is going on in your community. Take care of those near and dear but don’t be indifferent to others. Reciprocity

Causes of Group Misconduct A few bad apples Banality of evil Narrow Focus –Primary focus on insiders –Primary focus on short term Failure of leadership Dilution of personal responsibility in groups Organizational process and structure

Causes of Group Misconduct Organizational Culture Lack of Oversight Misalignment of Incentives Political Environment Prisoner’s dilemma

Cures of Group Misconduct Isolate the bad apples Recognize our own role Broaden focus –All stakeholders –Long term Be a leader Take personal responsibility Reorganize: moral risk management

Cures of Group Misconduct Ethical Culture Meaningful oversight Realign incentives Engage political process Create a level playing field where doing the right thing is encouraged.