A Behavioral Ethics Approach to Corporate Governance
54 Pages Posted: 19 Nov 2015 Last revised: 1 Jun 2016
Date Written: November 15, 2015
This is a PPT presentation connecting the emerging field of behavioral ethics to corporate governance in a concise and practical way. Key takeaways are that: 1. We tend to overestimate our ethical behavior; 2. Most of the wrong things are done by good people due to contextual pressures and temporal dynamics; 3. Large scandals occur due to the (tacit or explicit) support of many well intentioned people; 4. Traditional compliance programs do not solve the problem: good governance must be based on an sound organizational culture that extracts the best out of people; and, 5. Board members can make a decisive contribution by evaluating and reducing the risk of ethical blindness in their organizations.
Keywords: Behavioral Ethics, Corporate Governance, Corporate Scandals, Ethical Blindness, Ethical Fading.
JEL Classification: M10, M14, G34.
Suggested Citation: Suggested Citation