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Can We Commit Future Managers to Honesty?

Nicolas Jacquemet1, Stéphane Luchini2, Julie Rosaz3

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|September 6, 2021
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Summary

An honesty oath increased truth-telling among future managers when lies harmed others, but not when lies benefited everyone. This study tested the effectiveness of oaths in business ethics management.

Keywords:
C92D03D63.In-group biasOathbusiness ethicscommitmenthonestylyingmanagers

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Area of Science:

  • Behavioral Economics
  • Business Ethics
  • Experimental Economics

Background:

  • Dishonesty in business can offer personal gain, prompting ethical commitment devices like the MBA Oath.
  • The effectiveness of such oaths in fostering honesty among future business leaders is debated.

Purpose of the Study:

  • To investigate if a solemn honesty oath improves truth-telling behavior in future executives/managers.
  • To assess the oath's impact on deterring lying in a controlled experimental setting.

Main Methods:

  • Utilized a classic Sender-Receiver strategic game experiment with participants from a French business school.
  • Reinforced professional identity by pre-selecting Receiver groups to isolate the oath's effect on Sender honesty.
  • Examined lying behavior in scenarios detrimental versus mutually beneficial to participants.

Main Results:

  • Participants who took an honesty oath were significantly more truthful when lying would harm the Receiver.
  • The oath did not increase truth-telling when the lie was mutually beneficial to both Sender and Receiver.
  • The experiment found no evidence of in-group bias in lying behavior among the subjects.

Conclusions:

  • Honesty oaths can be effective in promoting ethical conduct, particularly when dishonesty harms others.
  • The impact of honesty oaths may be limited in situations with shared benefits from deception.
  • Future managers' ethical decision-making is influenced by commitment devices, but context matters.