FEEM Seminar on: “Do Leaders Affect Ethical Conduct? An Experimental Study”
Giovanna D’Adda, from the University of Birmingham, shows in this week’s FEEM seminar how leaders influence the unethical conduct of followers. In general, the presence of active group leaders yields significantly more misreporting. Moreover, statements from leaders have a stronger effect on follower behavior than the ability to distribute financial rewards. The researchers also identify heterogeneity between leaders in their propensity to act dishonestly, which correlates with their willingness to use statements or incentives as a means for encouraging dishonest follower conduct.