Why managers bend company rules

Abstract

Executive Overview Most managers live by a personal code of conduct that includes certain principles about integrity, regard for others, and keeping commitments. They refrain from engaging in actions that might compromise their reputations, careers, or organizations; they comply with regulations and are law-abiding. Most also believe they are ethical, and that is precisely why, when confronted with situations that they believe compel them to bend company rules, they are decidedly torn. While playing by the rules is the principled thing to do, and many would say the safest too, many managers also feel a responsibility to challenge the rules, because the rules are not always infallible, and fairness to other parties may demand nothing less. To better understand the nature of these competing demands, we asked over 100 executives from The Executive's Advisory Panel to share their views with us about why managers bend the rules and what they risk in doing so. The stories they tell offer unique insights into th...