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Peer effects in unethical behavior: standing or reputation?
David Pascual-Ezama1, Derek Dunfield2, Beatriz Gil-Gómez de Liaño3
1Department of Financial Economy and Accounting II, Universidad Complutense de Madrid, Madrid, Spain.
Working with peers reduces dishonest behavior, but widespread cheating among colleagues can encourage individuals to cheat for prestige. Social incentives and reputation significantly influence honesty in competitive environments.
Area of Science:
- Behavioral economics
- Social psychology
- Organizational behavior
Background:
- Unsupervised, competitive work can increase dishonest behavior for prestige.
- The impact of peer presence on workplace dishonesty remains underexplored.
Purpose of the Study:
- To investigate how familiar-peer influence, supervision, and social incentives affect worker performance and dishonest behavior.
- To compare dishonesty levels in isolated versus common work settings.
Main Methods:
- Three experiments were conducted to examine peer influence on dishonest behavior.
- Experiment 1: Compared isolated work vs. presence of peers.
- Experiment 2: Assessed impact of suspicion of dishonesty from one peer.
- Experiment 3: Evaluated effect of increased suspicion from multiple peers.
Main Results:
- Working with peers significantly constrains dishonest behavior compared to isolation.
- Suspicion of dishonesty from a single peer does not deter individual cheating.
- When multiple peers cheat, individuals are more likely to cheat to maintain social standing.
Conclusions:
- Peer presence acts as a social control, promoting honest behavior.
- Individual reputation and self-image are strong deterrents against dishonesty.
- Widespread peer dishonesty can override social controls, leading to increased cheating for prestige.
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