Abstract
This study examines experimental evidence showing how ethics power allocation mechanisms affect an individual’s in-organization resource division and ethical behavior. We used two two-stage lab experiments to explore power seeking and usage; the experiments contained two stages of power contending and power usage. Stage one used two different power-seeking mechanisms in the honesty game. Stage two was based on the dictator game and the ultimatum game to measure an individual’s power usage. The results show that the decisions taken by power-holders could influence the optimization of collective resources, and power-holders who gain power with unethical methods could result in collective resource allocation inequities. With more balanced in-organization power, members tend to be more honest. Subjects also adjust their unethical behavior to adapt to the environment, which could cause the diffusion of unethical behavior. This paper re-designed the dictator game and the ultimatum game by adding an ethically vulnerable power acquisition mechanism. For organizations to prevent the disproportionate dispersion of resources and achieve more public benefits, it is meaningful for managers to create a proper in-organization ethical power allocation mechanism.
Highlights
The process of achieving positive organizational aims and increasing collective benefits requires efforts from both leaders and other members in an organization
We explored the relations between an individual’s unethical behavior to gain power and the resource allocation within organization members
We present our findings in two main sections: dishonesty behavior from subjects, and resource allocation behavior in power usage
Summary
The process of achieving positive organizational aims and increasing collective benefits requires efforts from both leaders and other members in an organization. In an organization, ethical scandals often accompany the process of fighting for higher power status, and the potential risks of gaining power through unethical methods have been noted [1,2] This could negatively influence the collective benefits of in-organization resource optimization. The subjects tended to increase dishonesty degrees over time and adjust their intentions of behaving dishonestly after the results from previous rounds This adjustment of a dishonesty-inducing environment can cause a diffusion of dishonesty among organization members. The interactive impact of dishonest behavior and powerbalance indicates that when the power states between members are more balanced, the dishonest power-holders will increase their altruistic actions to prevent unwanted punishment, which could decrease collective resources. In contrast to the traditional negative stereotypes surrounding power and dictators, we find that different ethical power-allocation mechanisms are the key factors causing inequality between subjects in organizations.
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