Many white collar crimes aren't committed by hardened criminals. It's often normally moral people under financial strain, those under severe pressure from their bosses or shareholders, or people who get away with something minor then try to to test their limits.
So what exactly leads otherwise normal and hardworking people to cross the line? That's the subject of a paper by Dr. Muel Kaptein of the Rotterdam School Of Management.
We've collected some of the key insights and cognitive biases as a guide of what to look out for in a workplace.
Thanks to Dr. Kaptein for letting us feature his work.
Tunnel vision
Setting and achieving goals is important, but single-minded focus on them can blind people to ethical concerns.
When Enron offered large bonuses to employees for bringing in sales, they became so focused on that goal that they forgot to make sure they were profitable or moral. We all know how that ended.
Source: Muel Kaptein
The power of names
When bribery becomes "greasing the wheels" or accounting fraud becomes "financial engineering," unethical behavior can seem less bad.
The use of nicknames and euphemisms for questionable practices can free them of their moral connotations, making them seem more acceptable.
Source: Muel Kaptein
Social bond theory
In large organizations, employees can begin to feel more like numbers or cogs in a machine than individuals.
When people feel detached from the goals and leadership of their workplace, they are more likely to commit fraud, steal, or hurt the company via neglect.
Source: Muel Kaptein
See the rest of the story at Business Insider