In-Organization Ethics Power-Allocation Mechanisms and Members' Decision-Making Behavior

Area of Science:

• Behavioral Economics
• Organizational Behavior
• Experimental Economics

Background:

• Power dynamics significantly impact organizational resource allocation and ethical conduct.
• Understanding the link between power acquisition and ethical decision-making is crucial for organizational health.
• Existing models often overlook the ethical implications of power-seeking behaviors.

Purpose of the Study:

• To experimentally investigate how ethical power allocation mechanisms influence resource division and individual ethical behavior.
• To analyze the impact of power-seeking and power-usage strategies on collective resource optimization.
• To identify conditions that promote or inhibit unethical behavior within organizations.

Main Methods:

• Two-stage laboratory experiments were conducted involving power contending and power usage.
• Stage one utilized two distinct power-seeking mechanisms within the honesty game.
• Stage two employed modified dictator and ultimatum games to measure power usage and resource allocation.

Main Results:

• Power-holders' decisions critically affect collective resource optimization.
• Unethical power acquisition by individuals results in inequitable resource distribution.
• More balanced in-organization power structures correlate with increased honesty among members.
• Individuals adapt their unethical behavior based on the environment, potentially leading to diffusion of such conduct.

Conclusions:

• Implementing ethical power allocation mechanisms is vital for preventing resource inequity and maximizing public benefits.
• Managers should design systems that foster ethical power acquisition and usage.
• Promoting balanced power distribution can enhance organizational integrity and ethical standards.