Organizational Structure, Communication, and Group Ethics
- (pp. 2478-91)
Abstract
This paper investigates experimentally how a group's structure affects its ethical behavior towards a passive outsider. We analyze one vertical and two horizontal structures (one requiring consensus, one implementing a compromise by averaging proposals). We also control for internal communication. The data support our main predictions: (1) horizontal, averaging structures are more ethical than vertical structures (where subordinates do not feel responsible) and than consensual structures (where responsibility is dynamically diffused); (2) communication makes vertical structures more ethical (subordinates with voice feel responsible); (3) with communication, vertical structures are more ethical than consensual structures (where in-group bias hurts the outsider). (JEL C92, D23, L21, M14)Citation
Ellman, Matthew, and Paul Pezanis-Christou. 2010. "Organizational Structure, Communication, and Group Ethics." American Economic Review, 100 (5): 2478-91. DOI: 10.1257/aer.100.5.2478Additional Materials
JEL Classification
- C92 Design of Experiments: Laboratory, Group Behavior
- D23 Organizational Behavior; Transaction Costs; Property Rights
- L21 Business Objectives of the Firm
- M14 Corporate Culture; Social Responsibility