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Ethics and Incentives: A Political Approach | American Political Science Review | Cambridge Core

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Home >Journals >American Political Science Review >Volume 100 Issue 1 >Ethics and Incentives: A Political Approach English

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Article contents Abstract References Ethics and Incentives: A Political Approach

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28 February 2006 RUTH W. GRANT Show author details

RUTH W. GRANT Affiliation: Duke University

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[Opens in a new window] Abstract Understood within an economic framework as a form of trade, incentives appear inherently ethical; understood as a form of power, incentives seem ethically suspect. Incentives, along with coercion and persuasion, are among the ways in which some people get others to do what they want them to do. This paper analyzes incentives as a form of power in order to develop criteria for distinguishing legitimate from illegitimate uses of them. Whereas an economic approach focuses on voluntariness as the sole criterion in judging incentives, this political approach yields three standards: purpose, voluntariness, and effect on the character of the parties involved. The paper explores issues that arise in applying these standards. Framing the problem of incentives as a problem of power reveals the ethical issues with greater depth and complexity than placing incentives in an economic frame of reference.

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American Political Science Review

,

Volume 100

,

Issue 1

, February 2006 , pp. 29 - 39 DOI: https://doi.org/10.1017/S0003055406061983

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© 2006 by the American Political Science Association

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Volume 100, Issue 1

RUTH W. GRANT (a1)

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DOI: https://doi.org/10.1017/S0003055406061983

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Volume 100, Issue 1

RUTH W. GRANT (a1)

DOI: https://doi.org/10.1017/S0003055406061983

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May 18, 2022

Impact of Incentives on Ethics Examined

How and why do incentives elicit unethical behavior?

In “Incentive Effects on Ethics,” published in the Academy of Management Annals in January, ILR Associate Professor Tae Youn Park and research colleagues tackle that question.

Park, Sanghee Park of Hongik University and Bruce Barry of Vanderbilt University examined 361 articles assessing the impact of incentives on unethical behaviors in education, health care and for-profit businesses. By identifying what drives links between incentives and unethicality, the researchers hope their work will clarify the connection and lead to more constructive use of incentives.

They recommend ethics training, sanctions for unethical actions and decisions, and the promotion of ethical leadership to prevent illicit behavior.

Incentives are often blamed as a cause of corporate scandals such as the Wells Fargo case in which employees opened unauthorized bank and credit card accounts without customer consent, said Park, a member of ILR’s Human Resource Studies Department.

“One of the concerns is that offering extrinsic, financial incentives may pose moral risks of blending their professional sense of moral agency and responsibility with technical duties,” said Park, whose team sought to pinpoint that if incentives do, indeed, lead to unethical behaviors, then why.

Existing research on the link between incentives and unethicality varies widely – from how they conceptualize incentives and ethics to which research methods they use, Park said. “As a result, we see many different claims and arguments regarding why incentives lead to unethical behaviors, but they are widely scattered, making it difficult to know which arguments are more or less valid, with consistent empirical support. To my knowledge, ours is the first multidisciplinary review of theories and empirical evidence on the linkage between incentives and unethicality.”

After looking at research across disciplines including management, psychology, economics, education and health care delivery, the researchers learned:

The presence of incentives, such as stock options linked with organizational profit, directly influences the odds that an individual will act unethically.

Incentives, especially financial incentives, crowd out ethical motivations at a subconscious level.

Incentives may increase individuals’ tendency to frame situations as if the incentivized goals are the only relevant outcome and actively search for ways to justify potentially unethical decisions. This finding received the strongest empirical support.

The team also learned that the interplay of incentives and ethics varies by contexts. “This implies that it is important to establish policies that monitor the ethicality of routine business decisions. For example, research shows that the association between incentives and unethicality in for-profit business settings is mitigated when organizations have certain governance and monitoring devices such as presence of a strong, independent board of directors,” Park said.

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Ethics and Incentives: An Evaluation and Development of Stakeholder Theory in the Health Care Industry | Business Ethics Quarterly | Cambridge Core

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Business Ethics Quarterly

Article contents Abstract: References Ethics and Incentives: An Evaluation and Development of Stakeholder Theory in the Health Care Industry

Published online by Cambridge University Press: 

23 January 2015 Heather Elms ,Shawn Berman  andAndrew C. Wicks Article

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[Opens in a new window] Abstract: This paper utilizes a qualitative case study of the health care industry and a recent legal case to demonstrate that stakeholder theory’s focus on ethics, without recognition of the effects of incentives, severely limits the theory’s ability to provide managerial direction and explain managerial behavior. While ethics provide a basis for stakeholder prioritization, incentives influence whether managerial action is consistent with that prioritization. Our health care examples highlight this and other limitations of stakeholder theory and demonstrate the explanatory and directive power added by the inclusion of the interactive effects of ethics and incentives in stakeholder ordering.

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Business Ethics Quarterly

,

Volume 12

,

Issue 4

, October 2002 , pp. 413 - 432 DOI: https://doi.org/10.2307/3857993

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Copyright © Society for Business Ethics 2002

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Ethics and Incentives: An Evaluation and Development of Stakeholder Theory in the Health Care Industry

Volume 12, Issue 4

Heather Elms, Shawn Berman and Andrew C. Wicks

DOI: https://doi.org/10.2307/3857993

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Ethics and Incentives: An Evaluation and Development of Stakeholder Theory in the Health Care Industry

Volume 12, Issue 4

Heather Elms, Shawn Berman and Andrew C. Wicks

DOI: https://doi.org/10.2307/3857993

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Ethics and Incentives: An Evaluation and Development of Stakeholder Theory in the Health Care Industry

Volume 12, Issue 4

Heather Elms, Shawn Berman and Andrew C. Wicks

DOI: https://doi.org/10.2307/3857993

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Impact of Incentives on Ethics Examined | The ILR School

Impact of Incentives on Ethics Examined | The ILR School

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May 18, 2022

Impact of Incentives on Ethics Examined

How and why do incentives elicit unethical behavior?

In “Incentive Effects on Ethics,” published in the Academy of Management Annals in January, ILR Associate Professor Tae Youn Park and research colleagues tackle that question.

Park, Sanghee Park of Hongik University and Bruce Barry of Vanderbilt University examined 361 articles assessing the impact of incentives on unethical behaviors in education, health care and for-profit businesses. By identifying what drives links between incentives and unethicality, the researchers hope their work will clarify the connection and lead to more constructive use of incentives.

They recommend ethics training, sanctions for unethical actions and decisions, and the promotion of ethical leadership to prevent illicit behavior.

Incentives are often blamed as a cause of corporate scandals such as the Wells Fargo case in which employees opened unauthorized bank and credit card accounts without customer consent, said Park, a member of ILR’s Human Resource Studies Department.

“One of the concerns is that offering extrinsic, financial incentives may pose moral risks of blending their professional sense of moral agency and responsibility with technical duties,” said Park, whose team sought to pinpoint that if incentives do, indeed, lead to unethical behaviors, then why.

Existing research on the link between incentives and unethicality varies widely – from how they conceptualize incentives and ethics to which research methods they use, Park said. “As a result, we see many different claims and arguments regarding why incentives lead to unethical behaviors, but they are widely scattered, making it difficult to know which arguments are more or less valid, with consistent empirical support. To my knowledge, ours is the first multidisciplinary review of theories and empirical evidence on the linkage between incentives and unethicality.”

After looking at research across disciplines including management, psychology, economics, education and health care delivery, the researchers learned:

The presence of incentives, such as stock options linked with organizational profit, directly influences the odds that an individual will act unethically.

Incentives, especially financial incentives, crowd out ethical motivations at a subconscious level.

Incentives may increase individuals’ tendency to frame situations as if the incentivized goals are the only relevant outcome and actively search for ways to justify potentially unethical decisions. This finding received the strongest empirical support.

The team also learned that the interplay of incentives and ethics varies by contexts. “This implies that it is important to establish policies that monitor the ethicality of routine business decisions. For example, research shows that the association between incentives and unethicality in for-profit business settings is mitigated when organizations have certain governance and monitoring devices such as presence of a strong, independent board of directors,” Park said.

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Impact of Incentives on Ethics Examined | The ILR School

Impact of Incentives on Ethics Examined | The ILR School

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Undergraduate Admissions

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Master of Industrial and Labor Relations (MILR)

The Executive Master of Human Resource Management (EMHRM) Program

MS ILR

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Professional Education

Professional Workshops, Courses, and Training

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Customized Professional Programs

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Consider Graduate Schools

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ILR Home

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May 18, 2022

Impact of Incentives on Ethics Examined

How and why do incentives elicit unethical behavior?

In “Incentive Effects on Ethics,” published in the Academy of Management Annals in January, ILR Associate Professor Tae Youn Park and research colleagues tackle that question.

Park, Sanghee Park of Hongik University and Bruce Barry of Vanderbilt University examined 361 articles assessing the impact of incentives on unethical behaviors in education, health care and for-profit businesses. By identifying what drives links between incentives and unethicality, the researchers hope their work will clarify the connection and lead to more constructive use of incentives.

They recommend ethics training, sanctions for unethical actions and decisions, and the promotion of ethical leadership to prevent illicit behavior.

Incentives are often blamed as a cause of corporate scandals such as the Wells Fargo case in which employees opened unauthorized bank and credit card accounts without customer consent, said Park, a member of ILR’s Human Resource Studies Department.

“One of the concerns is that offering extrinsic, financial incentives may pose moral risks of blending their professional sense of moral agency and responsibility with technical duties,” said Park, whose team sought to pinpoint that if incentives do, indeed, lead to unethical behaviors, then why.

Existing research on the link between incentives and unethicality varies widely – from how they conceptualize incentives and ethics to which research methods they use, Park said. “As a result, we see many different claims and arguments regarding why incentives lead to unethical behaviors, but they are widely scattered, making it difficult to know which arguments are more or less valid, with consistent empirical support. To my knowledge, ours is the first multidisciplinary review of theories and empirical evidence on the linkage between incentives and unethicality.”

After looking at research across disciplines including management, psychology, economics, education and health care delivery, the researchers learned:

The presence of incentives, such as stock options linked with organizational profit, directly influences the odds that an individual will act unethically.

Incentives, especially financial incentives, crowd out ethical motivations at a subconscious level.

Incentives may increase individuals’ tendency to frame situations as if the incentivized goals are the only relevant outcome and actively search for ways to justify potentially unethical decisions. This finding received the strongest empirical support.

The team also learned that the interplay of incentives and ethics varies by contexts. “This implies that it is important to establish policies that monitor the ethicality of routine business decisions. For example, research shows that the association between incentives and unethicality in for-profit business settings is mitigated when organizations have certain governance and monitoring devices such as presence of a strong, independent board of directors,” Park said.

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Ethics and Incentives: A Political Approach | Semantic Scholar

Ethics and Incentives: A Political Approach | Semantic Scholar

Skip to search formSkip to main contentSkip to account menuSemantic ScholarSemantic Scholar's LogoSearch 217,149,622 papers from all fields of scienceSearchSign InCreate Free AccountDOI:10.1017/S0003055406061983Corpus ID: 145393793Ethics and Incentives: A Political Approach@article{Grant2006EthicsAI,

title={Ethics and Incentives: A Political Approach},

author={Ruth W. Grant},

journal={American Political Science Review},

year={2006},

volume={100},

pages={29 - 39},

url={https://api.semanticscholar.org/CorpusID:145393793}

}R. GrantPublished in American Political Science… 1 February 2006Political Science, PhilosophyUnderstood within an economic framework as a form of trade, incentives appear inherently ethical; understood as a form of power, incentives seem ethically suspect. Incentives, along with coercion and persuasion, are among the ways in which some people get others to do what they want them to do. This paper analyzes incentives as a form of power in order to develop criteria for distinguishing legitimate from illegitimate uses of them. Whereas an economic approach focuses on voluntariness as the… ExpandView on Cambridge PressSave to LibrarySaveCreate AlertAlertCiteShare49 CitationsHighly Influential Citations3Background Citations15 Methods Citations1View All49 CitationsCitation TypeHas PDFAuthorMore FiltersMore FiltersFiltersSort by RelevanceSort by Most Influenced PapersSort by Citation CountSort by RecencyThe Ethics of Alternative CurrenciesL. LarueCamille MeyerM. HudonJ. SandbergPhilosophy, EconomicsBusiness Ethics Quarterly2022Alternative currencies are means of payment that circulate alongside—as an alternative or complement to—official currencies. While these currencies have existed for a long time, both society and… Expand6PDFSaveThe Varieties of Incentive Experience 2 The Varieties of Incentive ExperienceR. KolbEconomics2013The Varieties of Incentive Experience We often speak of incentives as if there is only one kind, when in reality there are many. This study uses the financial crisis of 2007-2012 as a laboratory for… ExpandPDFSaveBenevolent absolutisms, incentives and Rawls’ The Law of PeoplesPietro MaffettonePhilosophy, Law2016Rawls’ The Law of Peoples does not offer a clear principled account of the way in which liberal and decent peoples should deal with benevolent absolutisms. Within the Rawlsian framework, benevolent… Expand1PDF1 ExcerptSaveThe Irrelevance of LegitimacyXavier MárquezPolitical Science2016Both popular and academic explanations of the stability, performance and breakdown of political order make heavy use of the concept of legitimacy. But prevalent understandings of the idea of… Expand50SaveMacrolevel Consent: A Defense of FederalismKyle ScottPhilosophy, Political Science2012This article develops a defense of federalism that builds from a virtue ethics justification of consent. In doing so, it introduces macrolevel consent which permits a defense of federalism that is… Expand2SaveEthics or access? Balancing informed consent against the application of institutional, economic or emotional pressures in recruiting respondents for researchGuri TyldumSociology2012In this article, I will show how groups with low human and social capital are less likely to volunteer to participate in research, if participation entails no direct personal benefits for… Expand32PDF3 ExcerptsSaveThe Concept of Incentive in Management: A Review of the LiteratureI. GorbanevSergio Torres ValdiviesoJose Fernando CardonaEconomics, Business2009The paper reviews and discusses the literature on the concept of incentive in management; the visions of ancient Greek philosophers, classical economists, scientific management, agency theory,… Expand1 ExcerptSavePatient Health Incentives: Ethical Challenges and FrameworksE. KleinMedicineInternational Journal of Behavioral Medicine2013TLDRA better understanding of ethical concerns and the resources available within the personal responsibility and clinical encounter frameworks suggest complementary guidance may be available for approaching many of the ethical issues raised by patient incentives.Expand71 ExcerptSaveControlling Homeless People? Power, Interventionism and LegitimacyB. WattsS. FitzpatrickS. JohnsenSociologyJournal of Social Policy2017Abstract There is intense debate over the legitimacy of interventions which seek behavioural change on the part of street homeless people. ‘Hard’ measures, such as arresting people for begging, are… Expand32Highly InfluencedPDF14 ExcerptsSaveDigital Confidence in Business: A Perspective of Information EthicsLichun ChiangBusiness, Computer Science2010TLDRResearchers Hauptman, Carr, and Kostrewski and Oppenheim showed ethical challenges in the context of trust in librarianship, and addressed user ethical problems related to privacy, information access, copyright and codes of ethics.Expand11 ExcerptSave...12345...61 ReferencesCitation TypeHas PDFAuthorMore FiltersMore FiltersFiltersSort by RelevanceSort by Most Influenced PapersSort by Citation CountSort by RecencyThe ethics of incentives: historical origins and contemporary understandingsR. GrantPhilosophy, EconomicsEconomics and Philosophy2002Increasingly in the modern world, incentives are becoming the tool we reach for when we wish to bring about change. In government, in education, in health care, between and within institutions of all… Expand621 ExcerptSaveEthics in human subjects research: do incentives matter?R. GrantJ. SugarmanPhilosophyThe Journal of medicine and philosophy2004TLDRThe ethical issue of undue influence is understood as an issue, not of coercion, but of corruption of judgment, and it is found that, for the most part, the use of incentives to recruit and retain research subjects is innocuous.Expand281PDFSaveFoundations of Social Choice TheoryJ. ElsterA. HyllandEconomics, Philosophy1986The essays in this volume, all of which have been specially commissioned, examine the philosophical foundations of social choice theory. This field, a modern and sophisticated outgrowth of welfare… Expand252SaveAccountability and Abuses of Power in World PoliticsR. GrantR. KeohanePolitical ScienceAmerican Political Science Review2005Debates about globalization have centered on calls to improve accountability to limit abuses of power in world politics. How should we think about global accountability in the absence of global… Expand1,117PDF1 ExcerptSave"To Persuade without Convincing": The Language of Rousseau's LegislatorC. KellyPhilosophy, Law1987Critics have long noted the paradoxical nature of Rousseau's appeal to a solitary lawgiver within a social contract theory based on equality and consent. However, far from representing a compromise… Expand38SaveUniversalism in CongressEmerson M. S. NiouP. OrdeshookPolitical Science1985Several earlier attempts at explaining the norm of universalism in Congress rely on a simple expected value comparison between the rewards to legislators of the coalition of the whole as against the… Expand143SaveThe terms of political discourseW. ConnollyPolitical Science1974William Connolly presents a lucid and concise defense of the thesis of "essentially contested concepts" that can well be read as a general introduction to political theory, as well as for its… Expand723SaveHypocrisy and Integrity: Machiavelli, Rousseau, and the Ethics of PoliticsR. GrantPolitical Science, Philosophy1997Arguing that hypocrisy can be constructive and that strictly principled behaviour can be destructive, this book explores the full range of ethical alternatives, distinguishing the various types of… Expand802 ExcerptsSaveCompensating for Public Harms: Why Public Goods Are Preferred to MoneyC. MansfieldG. V. Van HoutvenJoel HuberEconomicsLand Economics2002This paper provides evidence that public goods represent a more acceptable response to public harms than monetary compensation. We demonstrate a preference for public goods over monetary… Expand45SaveGroundwork for the Metaphysics of MoralsI. KantArnulf ZweigT. E. HillPhilosophy2002Immanuel Kant's "Groundwork for the Metaphysics of Morals" is one of the most important texts in the history of ethics. In it Kant searches for the supreme principle of morality and argues for a… Expand2,659PDFSave...12345...Related PapersShowing 1 through 3 of 0 Related Papers49 Citations61 ReferencesRelated PapersStay Connected With Semantic ScholarSign UpWhat Is Semantic Scholar?Semantic Scholar is a free, AI-powered research tool for scientific literature, based at the Allen Institute for AI.Learn MoreAboutAbout UsMeet the TeamPublishersBlog (opens in a new tab)AI2 Careers (opens in a new tab)ProductProduct OverviewSemantic ReaderScholar's HubBeta ProgramRelease NotesAPIAPI OverviewAPI TutorialsAPI Documentation (opens in a new tab)API GalleryResearchPublicationsResearchersResearch CareersPrototypesResourcesHelpFAQLibrariansTutorialsContactProudly built by AI2 (opens in a new tab)Collaborators & Attributions •Terms of Service (opens in a new tab)•Privacy Policy (opens in a new tab)•API License AgreementThe Allen Institute for AI (opens in a new tab)By clicking accept or continuing to use the site, you agree to the terms outlined in our Privacy Policy (opens in a new tab), Terms of Service (opens in a new tab), and Dataset License (opens in a new tab)ACCEPT & CONTINUE

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