[MUSIC] Welcome to this third video of week 7 of our course on Unethical Decision Making. In our previous video, we discussed how individuals can resist the pressures that may lead to ethical blindness. In this video, we want to give you some idea of how you can influence your organizational context in order to reduce the risk of ethical blindness. In this session, you will understand how leaders can evaluate the risk of ethical blindness in their organizations. You will get familiarized with the key questions you might want to ask when designing an organizational context that promotes integrity. Can be extremely difficult for an individual to resist to those psychological and sociological forces that we have discussed in our previous sessions. But, we have also looked at some possible solutions from the perspective of an individual actor. What about organizations? What can be done within an organization to protect its members against ethical blindness? Implementing changes on the organizational level is of course easier for leaders than it is for subordinates. Therefore, the following recommendations are mainly formulated for leaders. But this does not mean that you, if you are only a team member, should stop this video here. Team members can also take over responsibility. Granted, they may need to be a bit more careful when it comes to initiating any changes, but some bosses actually appreciate if they get support from team members who act with integrity. The first and most important step to fight ethical blindness is to increase awareness for the dynamics of strong contexts. Watch out for signals of ethical blindness in your context. As a leader, you may want to analyze the situation in your team using the following checklist. But keep in mind, what I just said, basically everybody, also team members could do that. Our time pressure is intense. We are completely absorbed by our work. The pressure to perform is very strong. Our objectives are not realistic. If somebody does not fit in here, they usually leave soon. The language in our company is very aggressive. Fear is a widespread feeling in our company. Your answers to this checklist will give you an idea about the overall dynamics in your organization or in your team. And it also gives you an idea what you might want to change. Change in order to promote a broader perspective of the people in your organization. We will now zoom into some selective types of context rapport, starting with time pressure. >> If you're a leader in an organization with huge time pressure, help your people to press the pause button when making decisions. Research clearly shows, if you take three minutes of reflection, you increase the probability of ethical decisions. So motivate others in your organization to take a deep breath, to bring themselves in the present moment, to investigate what their automatic routines behavior would have been, to reflect alternatives they could consider. Trying this kind of conscious break taking before decision making so that it becomes a habit for you, and ideally across your organization. Leaders have to be authorities in their organizations but, they should not abuse their power. They rather should lead as role models. And in particular they should empower their team members to speak without fear. Fear, as you remember, is one of the key drivers of ethical blindness. So as a leader, you should communicate clearly on the values of the organization. You should be open to the critical statements of others. You should encourage reason-based dissent. You should be clear about the rules of the game. You should not lead with vague and ambivalent messages. And you should not leave your people confused about the rules of the game. For obedience, as a manager of an organization, you should ask yourself, am I communicating clearly and regularly on questions of ethics and compliance? Do I act as a role model for integrity? Do I make it clear to my team that integrity is important for me? Do I respond promptly and decisively when compliance failures occur? >> Next, investigate the organization's processes and management systems. >> It is important to promote such management systems that clearly align target setting, evaluation, and incentives with integrity. Don't push other decision makers to the perception that they have to choose between success and integrity. Pressure is of course an important leverage for motivation, however, too much pressure is a main source of ethical blindness. It is important to wisely manage the balance between the too much and the not enough pressure in your organization. >> Here's another issue. Promote clear role expectations. >> As you have seen in the discussion on the prison experiment, unclear role expectations can promote ethical blindness. A challenge in organizations is that they're often dominated by the feeling or the experience that is inappropriate to raise ethical issues to talk about that. We do not want to be perceived as demoralizers and thus often avoid talking about ethics. It contradicts our perception of how we believe others see the role of a manager. Generations of managers have gone through a similar socialization at business schools. Managers have to be tough, and they have to be focused on profits. This narrow understanding of management responsibility is clearly outdated today. Good managers need a broad understanding of roles and responsibilities in order to avoid unethical decisions. And this is not only important from an ethical perspective. Unethical decisions can be very expensive for organizations. So, with regards to role expectations, as a manager of an organization you should ask yourself, what are the qualities and the characteristics of a successful leader in our organization. Who gets promoted in our organization. The aggressive but successful person, or the reflective person who looks at decisions from a broader perspective. >> Another key driver of ethical blindness is locus of control effects. >> If we feel that we are not in control of the situation, we might disconnect from consequences. In such a case, we can do horrible things without feeling responsible. It is thus important, to help people to develop this feeling of being in control of a situation. If you empower your team members by giving them the feeling that their contributions are relevant, and by showing to them that they can make a difference, they will have the perception of being in control. For instance, look at the impact of democratic leadership style. It increases the feeling of being in control of my decisions and of my, of the consequences of my decisions. So, with regards to the locus of control effect, as a manager of your organization you should ask yourself, do people in my organization have the feeling that they can influence things, or do they feel driven by someone, something else. Do our people tend to say things like, there is nothing I can do about it. This is not my responsibility. One aspect of organizational dynamics you have to understand better in order to avoid ethical blindness, is the so called slippery slope effect. Evil will enter your organization in very small steps. Steps that might look pretty harmless, in themselves. Therefore, you must insist on the rules of the game, even if transgressions seem harmless. As Cat Stevens once sang, the first cut is the deepest. You might remember from our session on temporal dynamics, that the commitment to a particular belief or behavior can escalate over time. We move forward on a slippery slope. We lose the ability to stop a dynamic, which might have started with something very small. Therefore, small compromises on values and rules are already dangerous. Be attentive to your own compromises on rules, and those that you observe in your organization. Ring the alarm bell when you see slippery slopes around you. So, with regards to slippery slope, as a manager of an organization you should ask yourself, are we maintaining the same level of integrity standards, or are we relaxing them over time? Is ethical misconduct made transparent, corrected, or do we rather not talk about it? Do we apply the Code of Conduct without any exceptions? Do we deal with compliance issues early and thoroughly? >> Let us wrap up this session. As a leader in an organization, you can influence the context in which others make decisions. We recommend that you analyze your organization for factors that may increase the risk of ethical blindness, such as time pressure, obedience, management systems, role expectations, and locus of control. Manage these factors in a way that the pressures on the team and the organization get reduced. Thanks for watching this video, and thanks for having stayed with us through out the whole course, goodbye. [MUSIC]