Week 3-Biz Ethics-2Oct23

Business Ethics
by
Dr Faryal Razzaq
Lecture 3
1
Attribution Theory
• Determine whether caused internally or externally
4
Other Key Personality Traits attributed to
Ethical Behaviours
Locus of control - Belief that life is controlled by

oneself vs. outsiders
Machiavellianism - Tendency to manipulate and
maintain emotional distance
Self-esteem - Degree one likes or dislikes oneself
Self-monitoring - Sensitive to external cues to
behave differently
Risk propensity - Willingness to take chances
Type A personality - Incessantly struggling to
achieve more
IDEAL SELF
Conformity Bias
• Normative Conformity the idea of fitting vs belonging. where one

may change their beliefs, behaviors, and actions to “fit in” with a
particular group
• Informational conformity where one may agree with or look to one

specific group in instances where one lacks knowledge on a
particular topic.
7
Three Dominant Normative Bias
• Internalization Conformity
• Compliance Bias
• Identification Bias
8
Types of Normative Conformity Bias
• Normative conformity
• Internalization conformity willingness to change
behavior to be more like someone else or fit in.
• Compliance conformity changing one’s thoughts,
behaviors, and actions while still internally disagreeing
with the group.
• Identification conformity refers to changing one’s
behaviors based on their role in society.
9
Internalization Conformity Studies
Asch Line Conformity Study

Experiment
• Solomon Asch (1953)
• Importance of people around in

decision making process
10
Internalization Conformity Studies Cont’d
Asch Line Conformity Study (Internalization

Conformity)
• 3rd stage actors frowned at subjects’ right answer
• 12 stages & 75% complied
• Behavior change by the pressure to adopt to

environment, people don’t’ want to be the only
intrusion 11
Conformity and the Asch Studies
◼ Demonstrated that subjects conformed in about 35% of the trials
◼ Group norms press us toward conformity
◼ Members desire to be one of the group and avoid being visibly
different
◼ Members with differing opinions feel extensive pressure to align
with others
Milgram Shock Experiment
Compliance Conformity
• Stanley Milgram (1961)
• Study People’s willingness &

tendency to submit to authority
• It sounds like roles are randomly

allocated
13
14
Compliance Conformity
• Subject is given shock before experiment

them how it may affect
• Task: read a word from list. Then he will count 4

options and ask the student to choose the option
that matches the word.
• With every wrong answer, the electric shock

increase
15
• The authority will insist 4 times

stop experiment 5th time.
• Teacher reluctant, but the money

the authority orders continue the
experiment.
16
• Pressure of authority over came pity.
• The maximum shock level 450 volts.
• 65% of the subjects submitted

the highest dose
submitting to the authority.
• The individual does not see themselves

responsible for behavior while doing
what someone else wants. 17
Stanford Prison Experiments
Identification Bias
• Philip Zimbardo 1971
• Social roles on human behavior
• Confined environment labelled with the title

of a prisoner or correctional officer
18
Identification Bias
• 24 physically and mentally healthy

undergraduate
• Started conforming to assigned roles
• Officers became aggressive and hostile
• Guards were allowed to return to their homes

after their shift.
19
Stanford Prison Expérimentes
Identification Bias
• Lasted 14 days
microphones and cams.
• They were allowed to interact as

they like
• Five of the prisoners had to be

released early
20
Identification Bias
• Zimbardo, prison warden,

overlooked the abusive behavior until
Christina Maslach voiced objections.
• demonstrated the power that societal
roles and
expectations can play in a person's
behavior 21
Conditions of Conformity
• more people are present
• task becomes more difficult
• members of the group are of a higher social status
• when people are able to respond privately
22

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Business Ethics

• Determine whether caused internally or externally

Locus of control - Belief that life is controlled by

• Normative Conformity the idea of fitting vs belonging. where one

• Informational conformity where one may agree with or look to one

Asch Line Conformity Study

• Solomon Asch (1953)

• Importance of people around in

Asch Line Conformity Study (Internalization

• 3rd stage actors frowned at subjects’ right answer

• 12 stages & 75% complied

• Behavior change by the pressure to adopt to

• Stanley Milgram (1961)

• Study People’s willingness &

• It sounds like roles are randomly

• Subject is given shock before experiment

• Task: read a word from list. Then he will count 4

• With every wrong answer, the electric shock

• The authority will insist 4 times

• Teacher reluctant, but the money

• Pressure of authority over came pity.

• The maximum shock level 450 volts.

• 65% of the subjects submitted

• The individual does not see themselves

• Philip Zimbardo 1971

• Social roles on human behavior

• Confined environment labelled with the title

• 24 physically and mentally healthy

• Started conforming to assigned roles

• Officers became aggressive and hostile

• Guards were allowed to return to their homes

• They were allowed to interact as

• Five of the prisoners had to be

• Zimbardo, prison warden,

• more people are present

• task becomes more difficult

• members of the group are of a higher social status

• when people are able to respond privately

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