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If You Can’t See the Forest for the Trees, You Might Just Cut Down the Forest: The Perils of Forced Choice on “Seemingly” Unethical Decision-Making

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Abstract

Why do otherwise well-intentioned managers make decisions that have negative social or environmental consequences? To answer this question, the authors combine the literature on construal level theory with the compromise effect to explore the circumstances that lead to seemingly unethical decision-making. The results of two studies suggest that the degree to which managers make high-risk tradeoffs is highly influenced by how they mentally represent the decision context. The authors find that managers are more likely to make seemingly unethical tradeoffs when psychological distance is high (rather than low) and when they are forced to choose between competing alternatives. However, when given the option not to choose, managers better reflect on the consequences of each alternative, and thus become more likely to choose options with less risk of negative consequences. The results suggest that simply offering managers the option not to choose may reduce psychological distance and help organizations avoid seemingly unethical decision-making.

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Notes

  1. Readers will note similarities between CLT and “moral intensity” (Jones 1991). CLT applies more directly to our research questions by focusing on the perceptions of managers rather that the characteristics of their actions.

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Acknowledgments

This research was funded by the Social Science and Humanities Research Council of Canada (SSHRC; standard Grant #820-2008-3030).

Author information

Authors and Affiliations

  1. Environment and Business in the School of Environment, Enterprise, and Development (SEED) at the University of Waterloo, 200 University Avenue West, Waterloo, ON, N2L 3G1, Canada

    Michael O. Wood

  2. Department of Marketing and Consumer Studies at the University of Guelph, 50 Stone Road East, Guelph, ON, N1G 2W1, Canada

    Theodore J. Noseworthy & Scott R. Colwell

  3. Department of Psychology at the University of Guelph, Guelph, Canada

    Scott R. Colwell

  4. Carl H. Lindner College of Business, University of Cincinnati, Cincinnati, OH, 45221, USA

    Theodore J. Noseworthy

Authors
  1. Michael O. Wood
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  2. Theodore J. Noseworthy
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  3. Scott R. Colwell
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Corresponding author

Correspondence to Theodore J. Noseworthy.

Appendix

Appendix

Waste Scenario

“The Waste Management division of Firmco is in the process of developing a new landfill. You are tasked with purchasing a new liner to protect waste run-off from leaking into the surrounding soil. [*Insert manipulation here*] The landfill is scheduled to operate for 20 years. You have two options that both meet national safety standards. Option A: purchase a triple-layer liner with a 25-year guarantee at a cost of $500,000. Option B: purchase a single-layer liner that has a 15-year guarantee at a cost of $300,000, saving Firmco $200,000. Which do you choose?”

.

 

[*Manipulations*]

CLT pillar

Low construal

High construal

Temporal

“Decisions regarding hazardous runoff are reviewed by the board every three weeks.”

“Decisions regarding hazardous runoff are reviewed by the board every three years.”

Spatial

“The landfill site is located two miles away from your corporate headquarters.”

“The landfill site is located 750 miles away from your corporate headquarters.”

Social

“If the soil were to be contaminated, residents of a new housing development would be displaced.”

“If the soil were to be contaminated, residents of a subsidized housing development would be displaced.”

Hypothetical

“Eight out of ten liners rupture before they reach their estimated lifespan.”

“Two out of ten liners rupture before they reach their estimated lifespan.”

Fishing Scenario

“Firmco owns and operates 100 fishing vessels. The Department of Fisheries and Oceans has suggested a seasonal quota of 2,000 lobsters per vessel. [*Insert manipulation here*] This quota is not enforced, but only monitored as a means to ensure the longevity of the local lobster population. You have two options: Option A: Fish 2,000 Lobsters per vessel, stopping when you hit the suggested quota. However, with spoil the net yield would be somewhere around 1,800 Lobsters per vessel. Option B: You could easily catch 2,200 lobsters per vessel to net the 2,000 quota, which would be the difference in net profit of $250,000. Which would you choose?”

.

 

[*Manipulations*]

CLT pillar

Low construal

High construal

Temporal

“Total catch volume is verified at the end of each day.”

“Total catch volume is verified at the end of each year.”

Spatial

“Firmco currently fishes 5 km of the east coast of Canada.”

“Firmco currently fishes 500 km of the east coast of Canada.”

Social

“Firmco operates in waters shared by Canadian and Russian fisheries. Hence, if depleted, the Canadian fisheries would suffer due to the strength of their competitor’s fleet.”

“Firmco operates in waters shared by Canadian and Russian fisheries. Hence, if depleted, the Russian fisheries would suffer due to the strength of their competitor’s fleet.”

Hypothetical

“Eight out of ten fishing fleets exceed the suggested quota out of 10 fisheries exceed the suggested quota.”

“Two out of ten fishing fleets exceed the suggested quota out of 10 fisheries exceed the suggested quota.”

Forestry Scenario

“The forestry division of Firmco harvests a mixture of hard and softwood from government lands under a lease agreement. The Department of Natural Resources, which awards the lease, suggests that companies harvest two specific types of abundant lumber (Western Red Cedar and Nootka Cypress) of the approximate 22 rare varieties in the surrounding area. This is only a suggestion, however, as it is not legally enforceable under the lease agreement. [*Insert manipulation here*] Firmco is exploring multiple methods for harvesting trees that vary in both efficiency and cost. You are tasked with selecting a new harvest method. Option A: Use a ‘selective cutting’ approach to harvest only the recommended trees at a cost of $850,000 per season. Option B: Use a ‘clear cutting’ approach, which is more efficient but does not discriminate among trees, at a cost of $650,000 per season. Which do you choose?”

.

 

[*Manipulations*]

CLT pillar

Low construal

High construal

Temporal

“The Department of Natural Resources records each company’s total yield at the end of each day.”

“The Department of Natural Resources records each company’s total yield at the end of each season.”

Spatial

“The forested lands to be harvested are 5 km from your corporate office.”

“The forested lands to be harvested are 800 km from your corporate office.”

Social

“Currently, Canadian firms share the lease agreement with several American companies based out of Minnesota. Hence, the suggested yield ensures that the Canadian companies can compete.”

“Currently, Canadian firms share the lease agreement with several American companies based out of Minnesota. Hence, the suggested yield ensures that the American companies can compete.”

Hypothetical

“Eight out of 10 forestry companies abide by the suggested yield.” 

“Two out of 10 forestry companies abide by the suggested yield.”

Mining Scenario

“Firmco’s mining division is about to open a new gold mine. Recently, other mining companies in the area have experienced a backlash from certain environmental groups due to the destruction of surrounding arable land. [*Insert manipulation here*] Firmco currently spends $220,000 per year to manage public relations, but is now concerned that the increase in protests could hurt the company’s productivity. You have narrowed your options down to two. Option A: choose to work with the environmental groups and explore whether the current mining techniques could be influencing the surrounding soil. This is estimated to cost approximately $40,000 per month due to delays in production. Option B: listen to your shareholders and start production immediately, which would not only retain production estimates, but also be consistent with Firmco’s legal rights to mine the land under contract. Which do you choose?”

.

 

[*Manipulations*]

CLT pillar

Low construal

High construal

Temporal

“The mine is scheduled to open in 2 weeks.”

“The mine is scheduled to open in 2 years.”

Spatial

“The mine is located 3 km away from your corporate office.”

“The mine is located 600 km away from your corporate office.”

Social

“The mine is located in Canada.”

“The mine is located in Africa.”

Hypothetical

“Eight out of 10 mining companies have decided to work with the environmental groups.”

“Two out of 10 mining companies have decided to work with the environmental groups.”

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Wood, M.O., Noseworthy, T.J. & Colwell, S.R. If You Can’t See the Forest for the Trees, You Might Just Cut Down the Forest: The Perils of Forced Choice on “Seemingly” Unethical Decision-Making. J Bus Ethics 118, 515–527 (2013). https://doi.org/10.1007/s10551-012-1606-x

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