Organisational structure, communication and group ethics
Matthew Ellman () and
Paul Pezanis-Christou ()
UFAE and IAE Working Papers from Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC)
This paper investigates experimentally how organisational decision processes affect the moral motivations of actors inside a firm that must forego profits to reduce harming a third party. In a "vertical" treatment, one insider unilaterally sets the harm-reduction strategy; the other can only accept or quit. In a "horizontal" treatment, the insiders decide by consensus. Our 2-by-2 design also controls for communication effects. In our data, communication makes vertical firms more ethical; voice appears to mitigate "responsibility-alleviation" in that subordinates with voice feel responsible for what their firms do. Vertical firms are then more ethical than the horizontal firms for which our bargaining data reveal a dynamic form of responsibility-alleviation and our chat data indicate a strong "insider-outsider" effect.
Keywords: experimental economics; group decision-making; organisational structure (search for similar items in EconPapers)
JEL-codes: C91 C92 D21 D63 D64 D70 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-bec, nep-cbe and nep-soc
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Journal Article: Organizational Structure, Communication, and Group Ethics (2010)
Working Paper: Organisational structure, communication and group ethics (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:aub:autbar:682.07
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